Share  |  Print
Money Minute
Quick Tips
What To Do With An Unexpected Windfall
Money Minute
Unexpected money could improve your financial situation if you use it thoughtfully.
 

Whether you have leftover money from your tax refund, or have just received an unexpected inheritance, you want to be thoughtful about how you put extra money to work for you. Here are a few suggestions for what to do with unexpected financial windfalls:


Create an emergency fund.

The Pew Charitable Trusts reports that 55% of households do not have enough liquid savings to replace a month’s worth of lost income. Unexpected expenses are almost certain to pop up, and they can be devastating if you are not prepared. So if you don’t have one already, make it a point to use your extra cash to start an emergency fund! Your goal should be 3 months of living expenses, or more if you want a bigger cushion, but start off by building up your fund to cover one month.


Get rid of high interest debt.

If you are behind on payments for secured debt, for example debt that is tied to your home or your car, get those under control first, then turn your attention to unsecured debt. Pay down credit cards, student loans and personal loans, and prioritize those with the highest interest rate.


Add to your retirement savings.

It may mean putting off that new TV or the gorgeous pair of shoes, but your future self will thank you.




By clicking the above link, you'll leave this site and go to a third-party website. Ariel does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site.

The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.

 
Past performance does not guarantee future results. © Ariel Investments, LLC. This website and all of its content is for informational and educational purposes only and should not be considered to be investment advice or a recommendation to buy or sell any particular security. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC. Use of this website is subject to our Terms & Conditions. The Ariel mutual funds referred to in this site may be offered only to persons in the United States. This web site should not be considered a solicitation or offering of any investment products, funds or services to ineligible investors, investors for whom such products, funds or services are not suitable, or investors outside the United States.

Check the background of this firm on FINRA's BrokerCheck
Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation