By planning strategically and spending your money wisely, you can ensure a stable financial future for you, your partner and your family.
In this article we take you through a range of ways you can pay off what you need to first, before you buy a plane ticket and start packing for a three week holiday abroad.
Pay off any Debt
Paying off any debt should be your number one priority – whether student loans, credit cards or car loans – for anyone who comes into a large sum of money. Cleaning up your consumer debt will enable you to start fresh and use the rest of your money elsewhere.
Pay towards your Mortgage or Buy Another Property
Putting a large chunk of your money towards paying off your mortgage will help you save more money in the future by cutting down the number of years needed to pay it off. If you have already paid off your mortgage, think about investing in another property for your children or a holiday home abroad. You can weigh up your options by looking at the prices of properties for sale in Dubai, Spain or your favourite holiday destination.
Open an Emergency Fund
Opening an emergency fund for when things go wrong (and we are talking about true emergencies), will mean you won’t need to stress over cash if one of your family members has to be admitted to hospital for a week.
Open a Household Maintenance Fund
There’s nothing worse than stressing over money to fix household appliances you use every day. By putting some money away into a savings account each month that can grow by gaining interest will put your mind at ease if your geyser blows, your roof starts to leak or your washing machine packs up. You can use your home maintenance fund to replace or fix problem areas or appliances in your home the very same day, without having to worry about where the extra money is going to come from to cover it.
Invest for your Retirement
Saving for your future is important, and by putting a large lump sum of money into retirement fund, that will cover your next two years of payments, will ensure you and your partner have financial security when you both are no longer working.
Set up a College or University Fund for your Kids
School fees are expensive and increase every year, why not give yourself a financial head start by setting up college or university funds for your children. Over the next few years it will grow, and by the time your children are old enough to go to college or university, they will have a nice lump sum to put towards their tuition.
Once you have allocated your money to the above points that apply to you, spoil yourself and your family with the money you have left over.
Upgrade your Car
If you have an older car in your driveway, why not give it an upgrade. By paying for your new car in cash, you will set yourself up in a cycle that will ensure you never have car payments again.
Go on Holiday
Have you been day dreaming about visiting the Caribbean for as long as you can remember? Use some of your left over money to book a cruise or beach holiday with your family and make memories that will last a lifetime.