When you receive a large sum of money, it can be tempting to spend it all at once. However, if you are not careful, you could find yourself in debt or without any savings. Here are ten things to do when you receive a windfall:

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1. Pay off debts

If you have any outstanding debts, it is important to pay them off as soon as possible. This will help you to avoid interest charges and late fees. The sooner you can get out of debt, the better.

2. Create an emergency fund

An emergency fund is a buffer that can help you to cover unexpected expenses. It is a good idea to have 3-6 months’ worth of living expenses saved up so that you know you have a safety net if something goes wrong. To start building your emergency fund, open a savings account and deposit your windfall. Then, make sure to add to it each month.

3. Invest in yourself

Investing in yourself can mean taking a course to improve your job prospects or taking a trip that will help you to relax and rejuvenate.

4. Save for retirement

If you have not already started saving for retirement, now is the time to do so. The sooner you start, the more time your money has to grow.

5. Give to charity

If you are fortunate enough to have more money than you need, consider giving some of it to charity. This can be a great way to help others and make a difference in the world.

6. Buy experiences, not things

Research shows that experiences tend to make us happier than material possessions. So instead of spending your windfall on a new car or a fancy piece of jewellery, consider booking a trip or going to a concert.

7. Invest in your home

Making improvements to your home can increase its value and make it more comfortable to live in. If you are thinking about selling in the future, this can be a wise investment.

8. Save for a rainy day

Even if you do not have any immediate plans for your windfall, it is always a good idea to have some savings set aside. This way, you will be prepared if an unexpected expense arises or if you lose your job.

9. Buy a business

This is a great way to invest your money and has the potential to make even more money. However, it is important to do your research before you buy a business so that you know what you are getting yourself into.

10. Start your own business

This is a great way to be in control of your own career and make as much money as you want. However, it takes a lot of hard work and dedication to making a successful business.

There you have it!

When it comes to windfalls, there is no one-size-fits-all approach. The most important thing is to think carefully about how you want to use the money. By following the tips above, you can ensure that you make the most of your windfall and set yourself up for financial success in the future.