What would you do with a windfall?
What would you do with a windfall? It’s pretty easy to say things like “payoff the house/payoff debt” or “invest part of it and go on a trip” but actually doing that might be another matter. There’s a difference between deciding what you’d do with a windfall in the abstract and actually receiving an unexpected windfall.
(And no, I haven’t won the lottery. I wish.)
But I should be getting a small refund from my taxes, when I’d been afraid I was going to have to pay a decent-sized amount instead.
My first thought on seeing the number (after I got done cheering at not having to PAY) was ooo now I can send this to my savings. Since one of my goals is to increase my savings by $4000 in 2008, sending the money to that account when I received it should be a no-brainer.
But then I started thinking about other things that I’d like. After all, I wasn’t expecting this money, so why shouldn’t I splurge with it?
Now I don’t have the money yet, so I haven’t actually committed to anything either way. But the point is that it’s much easier to decide some things in the abstract than it is to actually implement it.
Have you ever received an unexpected windfall? If so, did you use it the way you’d always thought you might? How did you feel about your decision afterwards?
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April 25th, 2008 at 11:40 am
This is actually what I’m pondering myself. Since my taxes seemed to work out so well (”seemed to” because I still don’t quite believe it) this year, I’m going to be looking at the savings for my taxes and the stimulus refund as a windfall. I’ll let you know it goes, I think I’m slicing off a small chunk for my Con this year, if the guilt monster doesn’t get me first.
April 25th, 2008 at 4:26 pm
Pay down debt is my answer, which is why the tax rebate most americans will be getting might not have the desired impact on the economy. Hmmmm… Maybe I should do my part instead and “consume” instead of “save.”
April 25th, 2008 at 8:14 pm
Well here is the difference between what I say and what I would actually do.
Say
-Pay Debt
-Repair Car
-Save the rest
Do
-Go on a shopping spree
-Get my car washed
-Take a mini-vacation
I believe I have gotten better at managing my money since I have lived in my condo. I actually have learned the value of needs and wants. If I was to win the lottery, I really do believe that I would actually do the things that I would say I’d do.
April 26th, 2008 at 7:05 am
1. Clear Debt
2. Put it into savings
3. Spend $500-$1000 of it :P
April 29th, 2008 at 1:20 pm
>After all, I wasn’t expecting this money, so why shouldn’t I splurge >with it?
Why splurge it? Just because it wasn’t expected, it doesn’t mean that it’s free. You had to work just as hard for that money as any other money, it’s just the govenment didn’t take it all! So, why NOT treat it like any other income- put x% into savings, y% into expenses etc. However, you handle your current income.
-Rick
May 10th, 2008 at 4:21 pm
With taxes, bonus, anything un-expected we take 10% for my DH and I to do something with just for us. The rest goes towards the current financial goal. That way we never feel like we don’t get to splurge, but we never just spend anything away.