What To Do With a Windfall
Help Your Money Fall Into Place
October 16, 2013 by Heidi Alger
When your norm is to have more month than money, a windfall—a sudden arrival of money—can give you some opportunities to save or spend, so it’s a great idea to set a goal. How do you decide what to do with an additional $100 or even $1000? Read on to find a few suggestions that might get your wheels turning before you spin out of control.
- Set Your Priorities—Whether you’re saving for a new car or a new pair of running shoes, being mindful of where your money is going is a great start to building the reserve that will give you buying power. You decide what portion of your windfall [50%? 90%?] will go directly to this goal, do not pass go…you get my drift.
- Save for Emergencies—Saving for a rainy day, a broken dishwasher or any unexpected expense that falls into your life…
- Invest in Yourself—Is there a subject that matters to you that you would like to study? A course for adventure? Something cooking in your future? Earmarking dollars for things you’ve always wanted to do is a definite DO.
- Pay Down Debt—From credit cards to paying a little principal on a big purchase, like a car or your home, bringing down a balance can bring a little balance to your life.
- Treat Yourself—You can choose to treat yourself to a little something right away with a small amount of your windfall, or maybe buy a gift card in any amount to your favorite store or restaurant that you can use later.