There is nothing better than knowing you have money in your bank account. That feeling of solvency and safety that you get from knowing you are financially covered is a feeling that is of sheer relief. Whether you have successfully saved your money over time or you have been given some cash, the extra money can and does always come in handy. In fact, it’s something you should be excited about receiving.
But what do you do when you receive it? What do you do when you have a surplus sitting there that could be put to good use? From paying outright for a year of private healthcare to buying a brand-new car, there is a lot that you can do with extra money that you didn’t expect. We’ve got some suggestions, though, and here’s what you could do with extra money when you didn’t expect to receive it.
Work on paying down debt
If you have a way of paying off any debt that comes your way, you should pay it and pay it sooner than later. Not only will you be making a wise decision, but you’ll be ensuring that you are setting your future up to be productive. That financial freedom that comes with paying off your debts is going to be a game changer.
Start building an emergency fund
You might be surprised at just how many people don’t have an emergency fund. An account with ‘just in case’ money can be super helpful when things go wrong. You have to consider backing yourself up if you lose your job or you have an accident. With a few thousand dollars, you can ensure that you are protected in the event of something going wrong.
Pour cash into your retirement account
Investing in your future is all about investing in your retirement, too. Having a retirement account is going to help you when you do decide that you’re ready to stop working. You deserve to have some free time to enjoy life, as it was always meant to be enjoyed once you spent years of your time working for other people.
There are plenty of retirement accounts that you can put your money into, and if you have extra then making sure that you build yours up is going to make a big difference to your future.
Invest in real estate
If you already have a house, though, you probably already know the process of this one. However investing in real estate is a great option for those who have a sudden influx of cash they didn’t expect.
You’ll be able to build wealth over time and have the opportunity to earn way more money through a rental income. If you can’t afford a property or a down payment with the extra cash, you can still give yourself a good start toward that goal.
Money is always a welcome addition to your bank account, and if you have extra money coming in, the best thing that you can do is look at a way to spend or save it.