Join 96,522 users already on read.cash

Windfall of Money, How to Handle Funds

2 28
Avatar for esmeesmith
Written by   100
1 month ago

There are times when you get the funds into the hands. Those funds can be of large number. And this means handling those funds are going to cost you a bit effort as well.

I think handling such high income can be something you have to plan and manage as your time goes ahead. Because here with time you are subjected to recession, lack of interest rate being improving. A lot of things then don't make much sense in terms of the ROI in that case.

So we are left with a choice where we are supposed to think of means to plan the money. So let's say you have like 10K in hands and you don't know what to do with the money.

In this post, I am taking the approach of how to handle this money, how to plan it's usage and also how to use it for the future usage. At the end of this article, you can decide what to do with the funds.

Breakdown the Funds into Categories

Let's say you have 10K in the windfall. And you don't know what to do with it. So your first approach should be you breaking it down into the categories. And then trying to make sense of those funds for usage.

Now we are going to think of category: Rent, Food, Clothing, Transport. These are the basic necessity. Now comes the family expenses. And then we can think of other expenses along the way.

I find making the categories and also breaking the funds down to the last fund would be a good solution and option on that front. I think when you do the categories properly things are going to be lot easier to manage and maintain too.

Start Assigning tasks for the Funds

Say you have funds and also made the categories for the same. What to do now? Because unless you get the funds moving they are not going to do anything for you. So the movement of funds is a necessity here.

Say you need some funds for the retirement. You need to make sure to have some money in hands for the same. Some of the time that would be a good start for you to work on. Assign some funds for the retirement.

You can do the same for the other things. Make sure to pay the bills. Start investing into your own skills, health and other things that would keep your funds moving as well. That would be one of the things that would work out.

Increase Return giving Assets Investments

Stocks have the power to give you better returns. You also get the good returns from the mutual funds. And also you earn good income out of the crypto. You have to find out what are some of the assets that you can use for the better returns.

Some of the time investing into the assets that has a good return power are worth investing into long term. Many people don't do that and this results into various issues with our life.

I invest into the mutual funds and the stocks that have the option of the dividend. Most of the folks who make use of that approach are going to find the value in those investments. I think this is a good approach for the asset development.

Feel Free to Spend 20% of the Funds

Sometimes it's not about money. But you need to use the money to live the life. Which also means that you have to use the funds the right way. You have to invest those funds in a way that can give you better experience.

I make sure to spend some of the funds from my savings which are nothing but the returns that I am earning. So spend it on the things like TV, or some other items which makes my life easier to use as well.

When you use the funds the right way things are going to get improved and life becomes lot easier as well. I personally make sure to invest the funds properly and that has helped my life so far.

Handle Emotions

Now that you have learned to use the money. You have categories and put the money to the work. You have to also make sure to handle the emotions along the way. Some of the time that may not work properly and you are going to struggle while you do that.

So make sure to handle your emotions properly and then continue investing as you normally do. Sometimes that is one of the ways things can be improved in that process. Work on your emotions, have better control.

What do you think?

How do you handle the windfall of the money. Do you handle it with anything different than what I have written here? Anything that I missed?

5
$ 1.05
$ 0.93 from @TheRandomRewarder
$ 0.05 from @Idksamad7869
$ 0.05 from @TheGuy
+ 1
Sponsors of esmeesmith
empty
empty
Avatar for esmeesmith
Written by   100
1 month ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

It is really important to have a plan on how to spend our money. Having a budget plan would be a great help.

$ 0.00
1 month ago

I always work with percentages, so I know what goes where when I get extra money. At the moment I am trying to pay off my student loans, so making sure all the extra money goes that way

$ 0.00
1 month ago