What Should You Do With an Unexpected Cash Windfall?

More often than not, people are trying to content with not having enough money. But it’s also true that there’s a lot of money out there in the world, and someone has to have it! While you shouldn’t pin your financial hopes on receiving a cash windfall, if it does happen, then you need to know what to do with it. Below, we take a look at a few useful tips that’ll ensure your money is the blessing that it should be and not a curse.

Keep the Dayjob

First thing’s first: if you find out that you’re going to receive a large chunk of cash, it’s important that you don’t let your primary source of income – your job – fall by the wayside. You never know what’s going to happen; that money may be liable to taxes that you didn’t know you had to pay. It may be divided between you and other people. Whatever the reason may be, it’s possible that it’s not quite as much money as you first thought. If that turns out to be true, then you will look slightly silly if you’ve already made your grand “I’m leaving and never coming back” speech at work.

Pay Down Debt

If you’re a regular person, then there’s every chance that you have one sort of debt or another. Before you begin making grand plans about all the stuff you’re going to do with the cash, make sure you’re making sure that your existing financial obligations are all in order. Money can disappear just as quickly as it arrived; you’ll be happy that you haven’t jeopardised your overall financial health by ignoring the debts you have to pay. If you at least manage to get the debt out of your life, then the money will have been used for good.

Make a Plan

Your money may become the most powerful tool you have in your chest. And with great power, comes great responsibility. Don’t treat your cash as something that’ll automatically be there forever; whatever the amount is, that simply won’t be the case if you don’t have a plan in place to make sure you stay financially healthy. If you don’t know what to do, then rope in expert advice. Partridge Muir & Warren can help to create a financial plan that protects your long-term interests. Managed properly, your windfall can continue to have a positive impact on your life long after the initial euphoria has worn off.

Allocate Some Funds for Fun

Though it’s imperative that you stay smart when it comes to your cash, don’t forget that life is about fun. You’re allowed – no, encouraged – to allocate a portion of your money to pure fun. The key is to set a percentage, and then stick to it.

Be Smart

Ultimately, the key to making sure that a cash windfall doesn’t cause more problems than solutions is to be smart. Don’t rush into anything, keep the money in perspective, and you’ll be on the right track towards long-term prosperity.

 

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