Having extra money can be overwhelming and can even tempt us to spend more than what is necessary. Before you start spending your hard-earned cash on the latest phone in the market, you might want to consider using the majority of that amount to prepare for the future.
Here are some things you can do with your extra money:
1. Start an emergency savings fund. It’s never too early to start an emergency savings fund. Learning how to save your extra income in the bank can help discipline you into becoming more financially responsible in the future.
2. Get insured. Whether it’s for a car, home, or health insurance, using that extra money for future coverage can help with any unexpected complications that may come up some time later. Remember to research on different insurance companies in your area and examine their policies to find out the range of their coverage and decide if you’re comfortable with it or not.
3. Fuel your passions. Use your hard-earned bonus to fund a vacation to an exotic location or a passion project you’ve been meaning to start. Spending your money on something you love will allow you to enjoy the present without compromising your values.
4. Pay off your debt. One responsible thing to do with your extra money is to first pay off any debts or loans you may have. One way of achieving financial independence is to make sure that no stones are left unturned. Paying your debts early can even have a positive outcome on your credit score.
5. Start Investing. Investing in a company might sound overwhelming; but once you get past the general terms and jargon and learned the basics, it can be one of the most fulfilling activities to help you expand your finances. Investing through purchasing stocks at an opportune time can earn you more money for the years to come! In fact, in a recent report from the Bank of Canada Outlook Survey 2016-2017, several businesses have steadily grown throughout the years. Although there may be little growth seen on some charts, taking the chance to invest in several companies may be the best way to put your money to good use so you can reap the benefits several years later!
Getting a little extra money shouldn’t be a wasted opportunity! Learning to save or funding a much-needed vacation can both be beneficial for your overall health and future. However, you shouldn’t forget to take note of your financial responsibilities as reckless spending and irresponsible financial management can negatively influence your future!