Money makes the world go round and no one would turn down a sudden windfall of cash, but that doesn’t mean that you immediately know what to do with it. There are a lot of good things that you can do with a windfall of money but too many people see a huge balance of cash and feel compelled to spend it. This means making bad choices and frittering it away before you have a real chance to use it. Windfalls of money are the unexpected things you receive rather than the money you carefully plan. It’s natural to want to have a blowout and treat yourself to things that you otherwise wouldn’t be able to have.
The best thing that you can do with a windfall is to be practical. If you have had tax debt relief and you have some extra money in your pocket, you don’t want to then waste that money. Being smart about your cash also doesn’t make you boring – it makes you smart! You need to make good choices that won’t come back to bite you in the end, and that means being practical and thinking clearly. So, with that in mind, let’s take a look at seven things you could choose to do with a windfall of cash you weren’t expecting.
- Spend Money On Your Health
If you have enough of a windfall, why don’t you invest in some great health insurance? Even if you live in a place with public health coverage, why not go for private insurance? Paying a year for coverage could make a massive difference to your life and while it’s one of those things that you pay for until you need it, you need to think about how much it would benefit you to have it when the time comes.
- Put Money Aside For A House
If your windfall was substantial enough, you may be able to buy a house with it. If not, you can at least put a sizable chunk away for a house deposit and not have to worry about paying rent to someone else anymore. Rent is empty money and you can think about using the money to pay down a deposit or solicitors fees for a new property.
- Go For Life Insurance
If something ever happened to you, it can be comforting to know that you are going to cover your partner or children and keep them afloat. Death benefits can pay off a lot of debts and even your home if you take out a policy big enough. Make sure that you read the small print, too, as you need to know that you can actually use it when you do die.
- Plan For Retirement
Life happens in a blink of an eye, and before you know it, you have too many yesterdays and not enough tomorrows. You can’t put your retirement off anymore. If you want to have a part of life where you’re not working all the time, you need to back yourself up with cash to lean on when you get there. Look at retirement accounts, or top up the one that you have already.
- Pay Off Debts
If you want to be free in your finances, then you need to pay off your debts and stop accumulating more. Your windfall can pay off so many things but debts are the best thing that you can let go of when you come into money.
- Invest In You
Do you want to go back to school? Now is the time to do it. Not only are you going to be able to let go of a rubbish job that you hate, but you can give yourself the education you always wanted to have that you couldn’t have in the first place. Financial independence gives you more time freedom to do things you want to do, so invest in yourself.
Sometimes, you can find that you have fixed the issues in your life, paid off your debts and gone back to school. Maybe you had enough to do all of that and buy a house – what now? Well, you could donate to charity. Windfalls won’t happen to you every day, but if you can do something to help someone else, then you should. Lending a helping hand to another human is the ultimate way to be a happy, complete human being.
Windfalls are a blessing. Spend it wisely, not frivolously, and you will be a happier person for it.
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