Congratulations! You came into some unexpected money.
And while it’s very exciting to have a windfall, you want to ensure that you’re maximizing the money by doing the right thing with it.
Because if you just spend it like it’s normal money, it will be all gone in no time, and you’ll have nothing to show for it.
And you don’t want that to happen. When you have a windfall, you have a very rare opportunity to better your financial future without impacting your current financial health. These opportunities don’t come along often, so here are a few things that you can do with unexpected money and windfalls to ensure that you’re getting the most bang for your buck:
1. Invest it in ETFs
Investing your money in ETFs is a great way to keep your windfall working for you, instead of against you. Not only will you enjoy a steady stream of interest and maybe even dividend income, but it’s a great idea for the long term, too.
2. Save for Retirement
Your money will go farther if you invest in a retirement account, because time is on your side – over the course of a couple of decades, it will increase substantially and you’ll be able to either retire a bit earlier, or enjoy more money in retirement. Plus, the tax benefit of putting the money in your retirement account can be great.
3. Make Improvements
If you have a house, using the windfall money to make some improvements around it can increase the value and thereby help you financially far more than spending it unnecessarily on useless stuff. Depending on how much you got, you could renovate the kitchen, replace the fixtures or revamp the flooring for a greater return when you go to sell your house.
Don’t frivolously spend your windfall! Use it to make your life better.