Monday, December 20, 2010

Spend Effectively and Wisely a Windfall of 30K

Windfall


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 reduce 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 timely to use the windfall to pay a down payment. However, bear in mind that you have to include the monthly installments 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 for your children’s education or contribute towards 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?

2 comments:

  1. Charles - There is a lot you can do with 30K. I agree with your tips on spending it effectively, particularly reducing your credit card debt and contributing towards your retirement refund. If I could add something to your list it would be to invest some of it and try to double your money. However, you will have to make sure you get involved with a good investment program.

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  2. Well I think most of practical ways on spending your money wisely are great, except the tips for buying a car. I don't think that will be suitable for me. :D

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