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Today is Windfall Day: My Plan

I’m sure everyone hates to hear about how money just shows up for people sometimes, considering that most people have the opposite problem (myself included!). That being said I can’t help but write about it, because even if you don’t have a rich uncle or secret fortune lying around somewhere, you will still come across small windfalls in your lifetime.

This is especially true when your tax refund shows up in the mail, and you now have (for me) about 500$ that you suddenly didn’t have. People tend to go a little crazy when free money shows up. Sure you have that nagging voice in the back of your mind saying “save it!” or “invest it!” but you also want that Nintendo Wii, don’t you? How can you have your cake it and eat it to? Simple.

Split it.

A lot of what you’ll do with your windfall depends on your current financial situation. If you are still climbing out of the consumer debt hole and have some balances racking up high interest, unfortunately that is your best place to start. I know, on one hand you get a good feeling making a dent in the money you owe, but on the other you feel like you’re throwing your windfall away, because it’s going to something you already have (because you borrowed to get it, remember?). All isn’t lost though, you can still have some fun! Take the majority of the money and save or invest it, and then use some of it for!

In this particular case, I just received my security deposit back from my old place (lesson #2, be a good tenant if you rent), and I’ve been throwing around all sorts of ideas as to what to do with it. In the end I decided that I do want to invest it away and build up my continuing dividend dynasty. I will, however, be taking a portion of it to fund my mini-vacation in February as well.

It’s important not to fret over every penny you spend, lest you get consumed by frugality instead of spending money (neither are good at extremes). It is ok to spend some of your money now, while still preserving your future.


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