Extra Money

I was told once, "Look what the average people do, and do the opposite." It's funny when you look at "the average person." They are unhealthy, in debt, etc., etc., etc. Well if you do what the average people do, you'll have what the average people have. This applies just as much to extra money.

There are many times in our lives when we get unexpected or extra money: Tax refunds, birthdays, Christmas, class action lawsuits, etc. This is money that is not part of our regular income. What do the average people do? Most people spend it before they get it. How many times have you heard of people planning on their income tax refunds to pay for something. Many people will use extra money to splurge, to buy something they normally wouldn't. Usually they will do this with "present" money, like birthday or Christmas money. Some people will use it to pay for the "bumps" that happen in life, like repairing the car or replacing the water heater. Very few use it to further their financial position.

I would suggest doing the opposite of the average person. Pay down debt. Build up a cushion of savings. Improve your financial standing and give a big "thank you" to the source of your new found money for helping you have more peace of mind.