Spend Effectively and Wisely a Windfall of 30K

What can you do with a windfall of 30K? Don’t paint the town red and spend it all on yourself and your friends and leave with nothing. Here are some ideas to spend it wisely:

• Reduce your credit card debt: The first priority is to take care of your debt especially credit card debt. It is a good time to wipe out your debt if it is less than 30K or reduces the amount by 30K if it is more. The most important thing is not the reduction of your debt, but change your way of life by living within your means. If not, sooner or later you will incur even more debt because you think you are born under a lucky star.

• Set up an emergency fund: If you do not have one yet, it is a good thing to set up an emergency fund and save an amount to cover three to six months’ expenses in case you are out of work for a  couple of months.

• Down payment for a new car: If you are thinking of buying a car it is time to use the windfall to pay a down payment. However, bear in mind that you have to include the monthly instalments into your monthly budget.

• Down payment for your house: You can even consider buying your dream house and make the initial payment. As usual, your monthly budget must be able to accommodate the monthly payments. 

• Invest in your children’s education or contribute to your retirement fund. Use the windfall and invest for your children’s future education and your retirement   

• Further education: Invest in yourself by taking a course relevant to your job so that you can  be more resourceful at work

• Charity: You can thank God for your lucky break by donating 10% of the windfall to your favorite charity.

• Celebrate. There is no fun just to spend the windfall sensibly. Perhaps you can allocate 10% to buy yourself a big-ticket item or to throw a party for the family and friends.

What would you do with a windfall of 30K?