Are you expecting a tax refund or bonus this year? Before researching deals on vacations, do yourself a financial favor and think carefully about your current situation. Here are few smart uses for your extra funds.
Start an emergency fund
An emergency fund is one of the best ways to avoid financial disaster in the event the unexpected happens. Nothing says security like a large, cushy savings account.
Pay down debt
Don’t let that extra money burn a hole in your pocket. A lump sum of money is a great way to tackle large balances and high interest rate bills. Not only will you reduce debt, but your credit score may hike up a few digits.
Extra mortgage payments
Try making one extra mortgage with your extra money. Not only would you pay down the mortgage faster, but you could save thousands of dollars in interest.
If the above options don’t sound appealing, use a small amount for fun. I’m not saying to go on a major shopping spree, but buy yourself a little something and put the rest in savings.