What To Do With An Unexpected Windfall Or Lump Sum Of Money

I think we have all been there. The moment where you get some unexpected money – whether it be through a scratchy win, tax refund, bonus, inheritance, finding a chest of pirate gold on an old sunken ship or merely finding a $50 note in the pocket of an old jacket.

It’s always exciting to find money you weren’t counting on. So today we figured we would look at some ideas for what you can do with this money should you be lucky enough to find some.

Note that some are a little more quirky than others.

A set and forget investment

Depending on the size of the money, perhaps any unexpected money could be put into a managed fund or batch or lower risk shares. Although I am not a big fan of either, if the money isn’t crucial to your living requirements and you weren’t expecting it anyway – this could be a good way to take a punt on long term growth of the money.

A debt killer

You could use the money to eliminate all of your debts. Or better yet, use what you can to eliminate your bad debts like credit cards and other high interest charging loans.

Definitely a wise move as you will unlikely ever get a windfall of money like this again, allowing very dollar you earn from that point on to work towards your actual goals – not your debt reduction goals.

A materialistic splurge

Some might simply want to splurge the money on some purchases. Although you will likely to have nothing to show for it into the future, some may enjoy the idea of treating themselves with this unexpected money.

Term deposit or high interest account

This of course is the more boring of the list, though safer none the less. A term deposit or high interest account could help yield more earnings from the current money. Depending on the sum of money, a term deposit paying 5% returns can be a rather attractive option.

Gambling

Perhaps you could attempt to double your money on a single hand of black jack. Definitely not a wise decision, nor one that any sane person would recommend, though could provide a good return or simply lose every dollar you have. For me, I would never go near this idea. Ever.

Though the idea of doubling your money is exciting (albeit unrealistic!).

An investment in your own idea

Perhaps you have some goals you always put off due to lack of resourcing or time. A fistful of unexpected cash may allow you to focus on your goals better. You may put the money towards a fitness goal of weight loss with a personal trainer. Or perhaps use the money to finally kick start that killer idea you never bothered with.

A karma creator

Perhaps you need some good karma. You could donate the money to a charity of your choosing. You know what they say right, every dollar you give tends to return 3x as much. It’s some kind of made up law of attraction with finances but seems to have worked for a few people based on blogs I have read.