A windfall is a lump sum of money received unexpectedly or out of luck, like a hefty graduation gift, inheritance, or a large bonus at work.
The first thing you need to do? FREEZE.
It’s very tempting to immediately go out and celebrate! But a fancy dinner out with friends or a night out on the town isn’t going to be very rewarding in the long run. Instead, put the money aside and let the thrill wear off BEFORE making any decisions on what to do with it.
For exceptionally large amounts ($5,000+), consider speaking to a financial coach or advisor. These are professionals who will make sure your money is working for you in the best way possible long term.
For smaller amounts, I suggest using the money as a boost to your current savings or debt reduction strategy! This will help you reach your goals even faster, and put a little pep in your step knowing you’re one step closer to being financially free!
I’m not sure about you, but I’ll take financial independence over a steak dinner any night of the week.