Whether you have just received a bonus at work, won big at the casino, or fell into an inheritance from your aunt whom you barely knew, the first instinct would be to blow it all, after all, it is money that you did not have before. Instead of buying unnecessary items, and before you go off buying that motorcycle you always wanted, it is time to be an adult, consult an accountant or financial advisor if you choose, and step back, take a deep breath, and find a way to put the new found money to good use and spend it wisely.
Pay off any Outstanding Debt
Sure it is a boring option that does not net you a lot of fun, but one thing it does it get you out of debt and releases the chains a bit to your financial freedom. Start with any high-interest credit cards and get rid of those, as well as any student loans or personal loans that may be outstanding. Start with the highest interest accounts first, ending with the lowest. Talk to any reputable credit counseling team and the first thing they will tell you is to use any cash windfall that comes your way on paying down debt!
Put it in the Bank
You may have always heard your parents say “put it in the bank” and it is for good reason. With experts suggesting that three to six months of living expenses but in an accessible savings account due to any unforeseen circumstances such as job-loss or emergencies like appliance repair or medical bills, it is a good idea to stick any extra money you have recently received into a bank account.
There are those that do enjoy giving to others, so why not help out your favorite charity. Some reading this that may be laughing at the thought of giving it away; at least any cash gifts to charity are tax-deductible, so it is not completely lost.
Now you can enjoy
Depending on the amount of your new fortune, it would be foolish to suggest that even the most frugal could not take a piece and enjoy for themselves. Getting out of debt is the most important priority, so provided you do not have any debt, are able to save some, reward your financial success with the remainder. As long as you do not have to dip into any other funds, use the remainder on yourself, as after call, you need some enjoyment in life; you deserve it.