asked:


perfect time to be thinking about what to do with extra cash that comes your way. The easy thing to do is just spend it on a big screen television or some other extravagant waste. The better thing to do can be to choose a path that will get you going in the right direction for your future. Here’s how:

Start by paying down or off all of the debts that you can. The less money you have to pay out to other people each month, the more money there is for you to use in your own life. Pay off the highest interest rates first and then start on the next debt. If you are a person who needs quick results then start paying off the lowest amount first. Knocking off the debts will be a strong motivation for you to do more.

Set a goal for a bigger and better something. If you do want that big screen television, then set up an account to buy it. Put found money in the account until you have reached your goal.

Set up an emergency fund. You should have three to six months’ worth of expenses in an account somewhere (preferably with high interest rates). Start a CD with unexpected money that can be used if an emergency arises and that can be added to until you reach your emergency fund needs.

Build a Health Savings Account. You can go by government guidelines and it will be a tax-free account, or you could just set up a savings account that you only use for medical purposes. Either way, dread of what it might cost will not overwhelm you if someone needs to see the doctor for some reason.

Plan a trip to some place you have always wanted to go. Apply any found money to the trip and then it will be one that you can enjoy guilt-free because there will be not debts attached to the experience at the end of the day.

Put your extra money in a ?retirement account?. When it reaches the predetermined point you can walk away from your nine to five job for good. Live off the retirement fund or keep it safely tucked away as you find new and more interesting ways to earn income.

As you learn to be frugal and have more money to make choices about, find new and lasting ways to spend (or save) that money so that it will build your future and not just enhance your now.