Wondering what to do when you suddenly come into some money? Getting a small or a large sum of money can feel great, overwhelming, or both, sometimes even sad if it’s due to an inheritance or settlement. It’s normal to have mixed emotions but the smart thing to do is to take time to think about what to do before you take action.
Now I’m not talking about a sudden jackpot or the ‘’what if I blow tomorrow” daydream, I’m talking about the “what if I save an extra 50k from my salary this month” or “what if I get an extra 10k or 100k alert”; A lot of money that you weren’t expecting, to be sure, but not a sum of money that could last you a lifetime.
Most people who come into a little bit of extra money tend to view it as money they can blow. They buy something fancy or splash out on things that they do not need or that they normally would not go out for. And when it’s gone, it’s gone. I’m basically saying, don’t do that. Don’t blow it. Treating yourself and splurging a little is fine. But the key is: Don’t go overboard. You don’t want to look back and have nothing to show for it, or end up like the lottery winners who go broke. To help you out, here are some thoughts on what to do when you come into money.
What to Do First When You Come Into Money
The very first thing to do when you come into money is almost nothing. It doesn’t matter if it’s a large sum of money or a small windfall, don’t do anything with it right away. Pause for a bit instead. Why? Because as the saying goes: act in haste, repent at leisure. That means you may do something in a hurry that you’ll regret later. And once the money is gone, it’s gone.
So give yourself a little time before you decide anything. Use the time to make plans and think, especially if it’s a lot of money. If you did somehow hit a jackpot, contacting an expert financial advisor like OG Capital is a smart thing to do, along with not broadcasting your good fortune.
There are plenty of things to do. You can: Pay off debt, Invest, or Save:
Pay Off Debt
If your goal is to get out of debt, using any extra money you bet to pay it down can be a great use of the money. This debt can be anything from loans borrowed, to that small NGN100 you are owing 9mobile. Clearing all your debt is going to make a long term difference because these actions are a huge part of you becoming debt free.
If you don’t already have practice successfully paying off debt, the danger is that you could use your unexpected cash to pay it down and then go right back into debt. So consider getting a little practice first if this is your goal, and hanging on the money for a bit.
Invest For The Long Term
Investing is one of the best decisions you can make with your money. Whenever you invest, you are buying a day in the future where you don’t have to work. You do not need millions of naira before you can invest in a profitable asset. With OG Capital, you too can begin your investment journey with as little as 10k. OG Capital is already reaping bountiful ROIs from investing in Real Estate and in SMEs using debt based instruments like equipment financing. Investing is as easy as ever.
Save For the Future
This is another good choice for what to do when you come into money. You can use the money to start or add to your emergency savings. You can also save it for an upcoming target such as an asset.
When you are saving for something specific, the goal is to hang on to your money so it’s there when you’re ready to use it. That means putting it somewhere safe, vs Investing to make more money with it. The decision rests on you and your priorities.
Of course, you don’t have to just pick one thing! You can do any combination of the above. There’s nothing wrong with using your new-found gain toward more than one goal. Your goals and the way you manage money shouldn’t change just because you got a large sum of money. You should just be able to reach them a little (or a lot) faster.
While you use the extra money to speed up your timeline, ensure you spend, save and invest wisely.
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Hi there! I’m Owen, a writer, designer, and a digital marketer. I create and manage content at OG Capital. I am a highly motivated individual who is very passionate about problem-solving. Reach out to me on social media and I will be more than happy to connect with you. Cheers!