Many people dream of the moment when they would find themselves with some extra money in hand. It sure feels nice to daydream about that, but at the same time, many also underestimate the negative implications attached to an event like that. It’s not all sunshine and roses – in some cases, getting extra money in your pocket can be a short-term nightmare as you’re scrambling trying to figure out what to do with it.
This is often the case for people who’re in a difficult financial situation before coming upon that extra cash, in which case they might feel like they’re in a whirlwind trying to decide how to best spend it. And while there’s not much that you can do if you’ve reached that point, you can certainly do a lot to prepare yourself better, and ensure that you can meet those situations with the right attitude.
If you have any debts looming over your shoulders, it should go without saying that those should get the top priority in utilizing your cash. This will depend on some factors of course, such as how much money you got in the first place. Sometimes it might not be nearly enough to get you out of your debt. But even if you can cover a small portion of it, that’s still much better than spending the money on any luxury purchases.
Talk to your lenders as well. A loan often comes with some strings attached regarding its early repayment, but you might be able to get around those rules if you discuss the situation with your lender and let them know how things have changed for you. In some cases, you’ll find that lenders are actually very willing to work with you and help you clear the debt faster, as long as they get something out of the situation as well.
Bumping Up Your Savings
You also have the option of contributing to your savings account. This is not a bad choice at all, especially if your savings have been getting lower recently. Keep in mind that there should be an upper limit to how much you’re saving though, as it doesn’t make sense to bump up the account too much after a certain value. But if you’re beneath that, by all means consider putting some of your extra cash away for the future.
This is generally only a good option if you’re filling up the account up to a certain level though. Don’t just save money for the sake of it – there are better options for spending it if your goal is to maximize its return potential.
For example, you can look into some investment opportunities that can make the money work for you for a while. Not each one will offer you a good return though, so don’t get too excited. But as long as you calculate your options and approach this with the right state of mind, you can set yourself up quite nicely for the future.
The point of investing should be to provide yourself with a nice financial platform that you can rely on later. If you get even a little money back on top of what you’ve invested in the beginning, then you’re still making progress.
How Did It Happen?
Replicating this kind of luck can be difficult due to its unreliable nature. Still, if you’re able to figure out the set of circumstances that led to your windfall, it’s definitely not a bad idea to consider pushing your life in that direction some more. If it was the result of a particularly successful deal in your personal business, for example, try to maximize the opportunities where something similar can happen in the future.
On the other hand, don’t try to replicate events that are completely dependent on luck. If the money came from the lottery or slot machines, then it’s a very bad idea to start trying to get the same results again. This is the exact way people find themselves addicted to gambling in general, and it’s the thing most casino games are trying to exploit in people. It’s certainly nice to win some extra money from time to time – enjoy it while it lasts. But don’t try to set your life up around the idea of pursuing that windfall again. This can only lead to tears, and that’s already been the result for many people out there.