Retirement Income

What should you do with unexpected money?

What should you do with unexpected money?

Perhaps you just won a lottery, landed a big client in your business, or simply received your tax refund. Either way, a sudden influx of cash is always welcome.

But how can you best manage the incoming cash? Here are a few things you should consider.

Put it towards your top financial goal(s)

If you are working on paying off debt, saving up for a down payment or upgrading your car, the windfall may put you on the fast track or at least provide some shortcuts.

If you have no specific goal in mind, putting a good chunk of the money aside as a fallback or emergency fund is a good idea in case of a rainy day.

Save it up

Park your cash in a savings account with your bank or financial institution. The interest rates may help your money grow, even at a modest pace.


Put your money to work by investing. There are a lot of options today, from shares and property to cryptocurrencies. Don’t forget to evaluate the risks and read the fine print.

Treat yourself

Budgeting does not always have to be dull and restrictive – if you feel like indulging yourself, set aside a small part of the extra cash for hobbies, trips, beauty treatments or other fun activities you’ve always wanted to do.

You can also use this to buy more time for yourself – for example, instead of doing chores, outsource the task and allow yourself some relaxing downtime. Alternatively, depending on the size of your windfall, you can invest in a new car or white goods that will let you complete tasks faster.