Thoughtful Ways to Spend a Windfall

Kiplinger.com offers suggestions for ways to spend a windfall of at least $1000. Should you find yourself with extra money you can pause and think about how to use it. These are uneasy times and one impulse would be to spend it on something fun. That is not a bad impulse because taking care of your wellbeing is an investment.  The list includes things like taking a vacation, upgrading your bike (or investing whatever pastime brings you joy).

There are also ways to spend a windfall so that you can put a little down payment towards a more secure financial future.

Invest in family

You can put extra money into an IRA or 529 plan for a child or grandchild. Kiplinger.com adds, “If your state offers a tax deduction or credit to residents who invest in its plan, using your state’s 529 may be the best bet.” That way you are really making that windfall work for you.

Pay down student loans

If you are doing alright financially and making regular payments, perhaps even paying a little extra, you might not think about putting even more money on your student loans. It is a good idea because you can pay that debt off even faster if you put additional funds towards it.

Invest in the things you use most

You can finally do some of the home improvements you may have been thinking about doing for a while. It is your choice: you can put the money towards something you really think will improve your home’s resale value. Or you can spruce up your home in a way that makes you happy, even if it will have little effect on your home’s resale value.

New tires are also a smart way to spend a windfall because a car is something you depend on. Instead of waiting until your tires are almost worn down, you can feel more secure getting new ones.

©Bring Clarity to Your Finances™. Thoughtful Ways to Spend a Windfall is a post from Bring Clarity to Your Finances™

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Claire Emory, MBA, CFA, CFP®

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