Are you in debt? Have you experienced some financial hardships lately that got you down, but you’re on the right track to getting there? Are you also expecting a windfall? If you are, here are a few things that you should and shouldn’t do when getting a windfall while In debt.
There are a lot of people with the mindset that when they get money, they should spend it. It’s a common thing to do, especially when you’ve been down financially. You may be missing out on fun things you love due to a lack of funds. So naturally, your first thought is to spend money on yourself doing those things. however, while it’s ok to want to spend money, that’s not the first thing you should be thinking. Don’t think spend, think save.
Put some of that money aside for later. Think of funding an emergency savings account or something similar. When you put money aside now, it won’t be hard to fund emergencies later. Remember, you don’t have to save all of it, but you should be saving some of it.
Pay What You Owe
If you’re in a lot of debt, use that money towards it. Don’t let that money slip through your hand without settling at least a few of your debts. Pick the most pressing ones and eliminate them if at all possible. You will feel so much better with that burden lifted off your shoulders.
Don’t Go Crazy
It’s unrealistic to think that you’re not going to spend some of that money. And again, it’s ok to spend a little bit on yourself. But the key here is to be realistic. Set goals for those funds before they reach your bank account. Decide how much to save, spend, and pay down debt. Once the goals are set, stick with them
A windfall is not a spending spree. If you’re in debt, spend a little bit but make sure you put some aside for the future and debt to lift those financial burdens off your shoulder. You’ll feel so much better if you do.
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Shatel Huntley has a Bachelor’s degree in Criminal Justice from Georgia State University. In her spare time, she works with special needs adults and travels the world. Her interests include traveling to off the beaten path destinations, shopping, couponing, and saving.