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.
The first step is paying off as much as possible of all current debts. This will be a huge help financially, since each dollar you don't have to pay someone else is a dollar you can use for yourself. It is often best to pay off high interest debts first, although eliminating small debts quickly is better in some situations. As you get rid of debts, you will feel motivated to continue bettering yourself financially.
Set a goal for a bigger and better something. If you do want that big screen television, then set up an account to buy it. Put found money in the account until you have reached your goal.
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.
Start a retirement fund. Put your money into a retirement fund and when it reaches an amount that you determine is sufficient, you can stop working altogether. Thereafter, you can find new ways to make your money work for you.
Learning to live frugally will help you have more money available to use and will put in a better position to save money with your financial future in mind. Building up your savings now will make your future much more secure.
The first step is paying off as much as possible of all current debts. This will be a huge help financially, since each dollar you don't have to pay someone else is a dollar you can use for yourself. It is often best to pay off high interest debts first, although eliminating small debts quickly is better in some situations. As you get rid of debts, you will feel motivated to continue bettering yourself financially.
Set a goal for a bigger and better something. If you do want that big screen television, then set up an account to buy it. Put found money in the account until you have reached your goal.
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.
Start a retirement fund. Put your money into a retirement fund and when it reaches an amount that you determine is sufficient, you can stop working altogether. Thereafter, you can find new ways to make your money work for you.
Learning to live frugally will help you have more money available to use and will put in a better position to save money with your financial future in mind. Building up your savings now will make your future much more secure.
About the Author:
Can cancelling a credit card save you money on your debts? Get the inside scoop on the Debtopedia website at http://www.debtopedia.com where you can get a free copy of my report Secrets Of Credit Card Debt
posted by Credit Counseling at
5:39 AM
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