Cash is the basic monetary unit that makes the world go round, in a sense! Without cash, we wouldn’t be able to buy things, and would have to resort to bartering for goods and services!
Most people get along in life just fine with the money that they earn through their employment with some folks obviously earning more than others! So it can be a welcome surprise if you are just “managing” in a financial sense, and you benefit from a decent cash windfall!
Whether you have inherited some money from a recently-deceased relative or friend, or are the beneficiary of an investment that has matured, if that new stack of cash is burning a hole in your pocket, what should you do with it?
Rather than flying to Las Vegas and blowing it all on poker games and slot machines, there are some practical things you can do with the extra money. Here are some ideas to help you:
Pay off your debts
People often say that it is better to pay off your debts than to save up money at the same time, and I agree with them.
Because the money you owe will most likely have interest added onto the balance, the longer you have outstanding balances, the more money you will owe. If your cash windfall isn’t sufficient to pay off all of your debts, pay the ones with the highest amount of interest; these are usually credit cards.
Fix your car
One thing that George from Hilton Garage recommends you do is to use some of the money to fix your car if it needs repair work.
Most of us rely upon our cars to get to work and back each day, and the last thing we want to do is spend ages going on public transport and potentially ending up late for work, as a result. Of course, there should be a limit to the amount you spend on your repairs.
If the required repairs exceed the total value of the car, it is wiser to trade in your car for a newer, more-reliable model and use some of your cash windfall to pay for it.
Fix your house
Anyone that owns a house will have some repairs that need completing, such as plastering, guttering, or even double-glazing.
Most of us put these jobs off because they cost a lot of money, but now that you have a cash windfall you could put that money to good use and repair your home, whilst increasing its value in the process.
Invest your money
Would you rather make your money work for you? If so, you should consider investing it. There are all sorts of commodities that you can invest in.
One popular way that people invest their spare cash is by lending it to others through peer-to-peer lending websites such as Zopa. The type of risk category you lend to determines how much interest you make, with higher risk borrowers proving to be the highest interest earners.