It’s the End of the Month – Here’s What to Do With Your Extra Cash
Did you make it to payday with a surplus? Make the most of your extra cash now to kick-start the new month and start a pattern of positive financial choices.
By: Nick Massie / 2017 / PayYourRent.com
Did you make it to payday with a surplus? Make the most of your extra cash now to kick-start the new month and start a pattern of positive financial choices.
Stuck for ideas on what to do with a surplus?
Here are a few options to get you started:
Got $500-1,000?
Did you manage to sock away $1,000? You’re definitely doing something right, but don’t stop the momentum there.
There are a few good ways to spend your extra cash.
If you’ve got $500-$1,000, you can roll it over to next month’s budget to begin exercising the ultimate budget ninja skill – living on last month’s budget.
This is a great way to carry on your momentum and save even more over a longer period of time.
Of course, this option isn’t for everyone.
If you’re carrying around a lot of debt, we always recommend that you pay that down first.
Having debt is the opposite of savings because it’s not just an outstanding balance – it costs you money every month. The fastest way to financial security if you have debt is to prioritize paying it off, and $500-$1,000 makes a big dent in credit card, store credit, and student loan debt payments.
No debt? Invest it in a savings account. But if you’re keen on saving, don’t toss it in a no-interest savings account. Consider getting started with robo-investors or a money market account to make your money work for you
Got $100-$250
Congratulations – you’ve made it through the month with a few hundred to spare. We all know how hard breaking even can be and it’s even harder to avoid the temptation to spend it on fun things.
Whether you’re low on cash because you’re still learning to live within your means or you just don’t have much to spare, scoring even $100 at the end of the month is a victory.
If you’ve got $100-$250 in padding this month, roll it over to the next month. Add it to your grocery bill or break it down into other categories like entertainment or gas to make those more comfortable.
Do you have debt? There’s no reason not to add an extra $100 to next month’s credit card payment. However, don’t hand over your cash to your credit card company if you’re still figuring out your budget. It’s better to have that extra cushion when you’re establishing your budget.
The worst-case scenario would see you paying down a credit card balance only to run out of cash and run it up again.
How Will You Spend Your Extra Cash?
Making it through the month with extra cash to spare is a sign that you’re on the road to financial health. But it’s important not to stop there. Whether you roll it over, pay down debt, or put it in savings, make a choice that will put you on the path to prosperity.
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