This year is getting to be very good in terms of financial blessings. The first quarter alone saw the hubby and I receiving some unexpected incentives at work. Then, during the second quarter, our mid-year bonus arrived and a few more monetary benefits came after that.
Receiving windfalls (in our case, it’s usually from work and nothing else) is always a pleasure and a reason to give thanks. By giving thanks, I mean saying a short prayer of gratitude to the guy above and sharing the blessing (in whatever form or way we like) with our loved ones.
Dealing with windfalls is easy especially if you know where to put your money on. Personally speaking, I follow this formula:
Windfall – Savings or Investments or Both = Planned Expenses
First, I identify the amount to be allotted for each entity. Then, I set aside the money for savings/investments and keep the cash for planned expenses in my wallet. Once the two have been separated, I think about the items in my “planned expenses.”
For the savings/investments, I make sure that the money goes towards those. It’s a non-negotiable. I should stick to the plan or run the risk of losing the money to unplanned expenses. To prevent this from happening, I deal with the matter as soon as possible.
As for the planned expenses, I make a breakdown of the items (e.g. good, service, etc.) I buy. For better monitoring purposes, I make sure my breakdown is simple and straightforward:
That’s it. The system that works for me when it comes to dealing with windfalls.
But here’s the thing. Before I became organized, I used to be careless and directionless with managing my windfalls. Most of them would usually go to debt servicing. Or to pay for advanced purchases. It was a big mistake. But then, it was a good thing I committed that mistake so I could learn from it and change my ways. Now, I know better and so I have better control of my money. It’s kinda fulfilling and liberating, actually.
How about you, how do you deal with windfalls? Let’s learn from each other! 🙂