Maybe it’s an inheritance, a lottery win, or some other stroke of luck. When you suddenly find yourself flush with some extra cash, it’s tempting to spend it on something fun even when you know you ought to be saving it. Here’s how to do a little bit of both.
Photo by Steenbergs
J.D. Roth over at financial blog Get Rich Slowly recommends keeping five per cent to treat yourself to that fun new toy or a holiday. Use the rest to (in this order) pay any tax debt, pay off other debts, and fix things that are broken. Put anything left over into a safe savings vehicle, one that does not allow you easy access to that money so the temptation to spend it is reduced.
How to handle a windfall [Get Rich Slowly]