My Money: What to Do with It
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.
Make an emergency fund. Since there is no way to know when you will need money for an emergency, set up an account that earns as much interest as possible that can be used in case of emergency. You should put away enough money to live off of for three to six months. When you receive unexpected cash, put it into a CD and then save it to be used if need be.
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.
Travel somewhere you have always dreamed of going to. Use your newfound money to travel. If you are able to go on your trip with savings instead of going into debt to pay for it, there will be no guilt attached to your dream vacation.
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.
As you learn to be frugal and have more money to make choices about, find new and lasting ways to spend (or save) that money so that it will build your future and not just enhance your now.
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.
Make an emergency fund. Since there is no way to know when you will need money for an emergency, set up an account that earns as much interest as possible that can be used in case of emergency. You should put away enough money to live off of for three to six months. When you receive unexpected cash, put it into a CD and then save it to be used if need be.
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.
Travel somewhere you have always dreamed of going to. Use your newfound money to travel. If you are able to go on your trip with savings instead of going into debt to pay for it, there will be no guilt attached to your dream vacation.
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.
As you learn to be frugal and have more money to make choices about, find new and lasting ways to spend (or save) that money so that it will build your future and not just enhance your now.
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