Ways to handle a financial windfall
InvestigateTV - It could be a bonus at work, an unexpected inheritance, or even the lottery. A sudden influx of money is a welcome surprise, but what you do with that extra cash is actually the bigger moment.
Whether it’s a child tax credit, a COVID-19 relief check, even a tax refund, we’ve all looked forward to unexpected piles of cash, but are we making the best use of that surprise cash?
The experts at the financial website Nerdwallet put together a list of ways to better handle the extra money. They said when you get a windfall stop and think about the good and bad money decisions of your past.
Sure, you can erase debt with a windfall, but how many times do you repeat the same spending habits and rack up more debt.
Another idea for the money? Focus on your intermediate to long-term goals, not short-term wants. Ask a partner or friend to hold you accountable to make sure you do what you say you’re going to do with the extra money.
Experts also said the real key to managing a windfall is to take your time and put some separation between when you get the money and how you use it. That way you aren’t giving into urges and instead making a solid plan for that money that could truly help you with debt or building up a savings.
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