DCSIMG

Getting Started

What to do with windfalls

By Tara Cabullo, Brighterlife.com.ph

Comments (2)

Summer-LuminousGrey

The annual bonus time is upon us again! It’s quite easy to tell, what with the people around us being quite extravagant and generous than they ordinarily are. I should know – I used to be that way myself. Being a shopaholic, I would be tingling in excitement, anticipating the many things I could spend my money on. The options are aplenty: visit a new country, buy that designer bag I’ve been dreaming of for months now, or maybe a nice new bed and matching Egyptian sheets with a 1,000-thread count?

But that was then. I’m not too sure when I stopped thinking like this. Maybe it’s the wisdom that comes with growing old or the comfort of having multiple sources of income that halted my impulse to purchase unnecessary stuff. I would usually find myself considering space limitations and asking myself: why do I need this again?

Since buying a senseless (albeit gorgeous!) purchase has been eliminated from my options on what to spend my money on, I am now left with a conundrum to solve: what should I do with my windfall?

I’ve made a list and narrowed them down to these options – very mature options, if I do say so myself! Some of them just might apply to you, too.

1. Pay my dues in advance. In my case, since I’m paying for my own home, I am making an advance deposit on the account. One responsibility off my back, yes?

2. Pay yourself. Something I’ve always considered a necessary expense, “paying myself” is a necessary step whenever I have a huge sum of money come in. Where I used to think that rewards for myself came in the form of red-soled heels, now it means more zeroes in my bank account balance.

3. Put the money somewhere it will grow. If there’s anything I’ve learned in the last five years, it’s not about how much you have – it’s what you do with your money. There are a ton of options (from SDAs, the stock market, to TDs to UITFs and mutual funds). Make your money grow. You won’t regret it.

4. Charity. Since you have so much money, then why not share it with those in need? After all, as they say, the best investment is where the money builds people. Choose a cause or an advocacy, share your blessings, and be rewarded with things that money cannot buy.

So, have you figured out what to do with your windfall?

Photo used under Creative Commons from Luminous Grey

Need help on planning your finances well?

The right person might be an advisor who can walk you through the steps of successful financial planning.
Don’t have an advisor yet? Click here to find the best one for you.

Receive regular wise money advice right in your inbox. Subscribe to our Brighter Life e-newsletter for FREE

Alex on

Good article!

I think 5 – 10 percent can be use for something fun (a few nice meals, weekend trip, etc) and the rest should be allocated for debt reduction, building an emergency fund or investing before the money is ever even deposited.

Keep up the great work!

Add a new comment:

Note: Please be sure to read our commenting policy and terms and conditions for this site. We reserve the right to delete any comments that we view to be in violation of our policy. The name you provide will appear next to your comment. Thank you!

Your email address will not be published. Required fields are marked *

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Connect to your Brighter Life