What to Do With All That Money
When you receive a large amount of cash, there are lots of ways that you could choose to spend it. Many people decide to blow their money on unnecessary items like big screen TV's. Spending that money wisely, however, can actually have a positive effect on your financial future. The following steps will help you do it.
Start by paying down or off all of the debts that you can. The less money you have to pay out to other people each month, the more money there is for you to use in your own life. Pay off the highest interest rates first and then start on the next debt. If you are a person who needs quick results then start paying off the lowest amount first. Knocking off the debts will be a strong motivation for you to do more.
Make bigger, better goals. If you really want that big screen TV, then make it a goal and then reach it by setting up an account that you regularly make deposits to. Save until you can make your goal purchase.
Set up an emergency fund. You should have three to six months' worth of expenses in an account somewhere (preferably with high interest rates). Start a CD with unexpected money that can be used if an emergency arises and that can be added to until you reach your emergency fund needs.
Set up a Health Savings Account. If you choose to set up this account in accord with the government's criteria, the account will be tax exempt. You might also decide to open your own savings account and use the money therein for healthcare. Having such an account will help ease your concerns when it comes time to visit the doctor or hospital.
Plan a trip to some place you have always wanted to go. Apply any found money to the trip and then it will be one that you can enjoy guilt-free because there will be not debts attached to the experience at the end of the day.
Put your extra money in a retirement account. When it reaches the predetermined point you can walk away from your nine to five job for good. Live off the retirement fund or keep it safely tucked away as you find new and more interesting ways to earn income.
Learning to live frugally will help you have more money available to use and will put in a better position to save money with your financial future in mind. Building up your savings now will make your future much more secure.
Start by paying down or off all of the debts that you can. The less money you have to pay out to other people each month, the more money there is for you to use in your own life. Pay off the highest interest rates first and then start on the next debt. If you are a person who needs quick results then start paying off the lowest amount first. Knocking off the debts will be a strong motivation for you to do more.
Make bigger, better goals. If you really want that big screen TV, then make it a goal and then reach it by setting up an account that you regularly make deposits to. Save until you can make your goal purchase.
Set up an emergency fund. You should have three to six months' worth of expenses in an account somewhere (preferably with high interest rates). Start a CD with unexpected money that can be used if an emergency arises and that can be added to until you reach your emergency fund needs.
Set up a Health Savings Account. If you choose to set up this account in accord with the government's criteria, the account will be tax exempt. You might also decide to open your own savings account and use the money therein for healthcare. Having such an account will help ease your concerns when it comes time to visit the doctor or hospital.
Plan a trip to some place you have always wanted to go. Apply any found money to the trip and then it will be one that you can enjoy guilt-free because there will be not debts attached to the experience at the end of the day.
Put your extra money in a retirement account. When it reaches the predetermined point you can walk away from your nine to five job for good. Live off the retirement fund or keep it safely tucked away as you find new and more interesting ways to earn income.
Learning to live frugally will help you have more money available to use and will put in a better position to save money with your financial future in mind. Building up your savings now will make your future much more secure.
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