In life, sometimes we get lucky. From time to time, you will receive an unexpected sum of money. If you do not have a plan, you will waste it. Now, that doesn’t mean you won’t get to have any fun. However, a well thought out plan will do a lot more for you. By considering how you will spend unexpected money, you will be prepared when you get it. Additionally, you won’t feel overwhelmed.
7 Amazing Ways to Use Your Unexpected Income
Have you considered how you would spend any surprise money? If not, here are a few of our favorite ideas. Depending on the amount you get, you might be able to do more than one. Even if it is only a small surprise, it would still be best to plan ahead. http://insidertrades.com/ recommends investing in a smart way. That way, you never get caught off-guard.
1. Start a Business
Surely, you’ve got a great idea for a business. Most of the time, money is the limiting factor. Now, you got the cash to launch your dream company. Plus, by launching a business, you can multiply your initial investment. Perhaps, you could even quit your day job.
2. Take a Vacation
Maybe you are already feeling a little burnt-out. In that case, a little rest and relaxation would be better. Do you have a dream destination in mind? Go ahead and take that trip. You have earned it.
3. Invest the Money in an Index Fund
Investing is always a smart idea. When you put your money in an index fund, it will grow over time. By putting away a large lump sum, you can get a headstart. Eventually, your portfolio will be substantial. However, unless you start, nothing will happen. Index funds are particularly useful. They let you diversify your entire portfolio easily. That way, you don’t have to spend a ton of time researching the market.
4. Hedge Against Inflation With Gold
Of course, it is always a good idea to hold some of your assets in gold. Historically, gold is one of the safest investments there is. In fact, it has been used since the dawn of history. Therefore, it is pretty unlikely to go away any time soon. Not to mention, it holds its value even during times of high inflation.
5. Get Someone a Gift
When was the last time you gave someone a nice gift? Sometimes, it feels even better to do something for other people than for yourself. Is there anyone you want to show how much you appreciate them? A nice surprise says a lot more than you realize. Plus, they are not ever going to forget it.
6. Eliminate Your Debts
Paying off your debt is one of the best things you can do with unexpected income. Not only does it reduce what you owe, but you pay less overall. By paying more than the minimum payment, you reduce the total amount of interest. Not to mention, your monthly expenses shrink too. What else could you ask for?
7. Catch Up on Bills
Maybe, you are already behind on something. In that case, now is the time for you to catch back up. Falling behind on bills happens sometimes. Typically, it is due to something totally out of your hands. By using unexpected income to catch back up, you reduce your stress substantially. Then, you can quit working all of those over-time hours. Time is one of the best gifts you can give yourself. After paying your bills, take some time off. You deserve it.
8. Making the Most Out of Your Unexpected Cash
As long as you have a plan, unexpected income is amazing. Nevertheless, most people will wind up wasting it. You want to have something to show for it once it is gone, right? All of the ideas listed above ensure that happens. However, this is far from all the things you could do with it. Perhaps, you have something even better in mind. Now is the time to think it through.