If there’s one topic among people that never goes out of trend, it’s asking what you’d do with extra cash. We’re not talking about the cash that happens to be leftover unexpectedly, but guilt-free money that you can do absolutely anything with.
Sudden windfalls, unexpected gains, or leftover funds are somethings that just happen in life. There are a lot of things you can do with your extra cash, but before you go nuts, here are some things to consider when wondering what to do with extra money.
First things first
Regardless of the amount that you have, think about what else you might need to prioritize financially. Are you up to date on your credit card bills, any insurance premiums, or any other bills for that matter? If you’re not, put your extra money towards these obligations. An extra Php 5,000 towards your credit card bills can lower your principal balance and the interest you pay on it, for example.
But if you’re sure that everything’s been taken care of, then you can think about putting the money elsewhere.
What do you want?
There are times when it’s okay to put your money towards wants, and this is one of those times. Take note, of course, that you’ll need to fit that want into the extra amount that you have on you. You’ve got an extra Php 5,000 – don’t try and buy something worth twice that amount. Fit whatever it is you want within the amount that you have.
Just as you prioritize needs over wants, you’ll need to think which of your wants can fit into the money.
Do you have a goal?
Sure, you might have already put away money for savings. If you’ve got a saving goal or if you’re looking to eliminate debt, you can choose to set aside some money for these instead. The extra Php 5,000 that you have on you could easily be split between savings and debt (if you have any), or put towards your dream vacation.
Don’t spend it all in one place
If you plan on spending your extra money at all, you can space it between several purchases instead of just one giant purchase. Find a way to get the most bang for your buck and still get some of the smaller things on your most wanted list. For example, instead of buying that pair of shoes worth the entire Php 5,000 – spread it around to get one less expensive pair of shoes, maybe a couple of nice tops.
The choice is yours
Everyone’s situations will be different when extra money happens to pop into their lives. Whether you spend the extra money or put it away is all up to you. You’ll have a lot of choices; make the ones that you think will be the best for you.
What would you do with your extra cash? Let us know in the comments!