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Holiday Windfalls: 7 Tips on Using Them

Holiday Windfalls: 7 Tips on Using Them

windfall

    The holidays often come with a windfall or two: a monetary gift from a relative or a bonus from an employer. We don’t necessarily expect these gifts — that’s why they’re called windfalls — so deciding what to do with them can be a little complicated. Perhaps you have a pressing need for cash to pay an important bill. If so, that kind of practical application may make your decision for you. If you don’t have such a need, however, take time to consider your options.

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    1. Put it in your emergency fund

    While this option doesn’t sound particularly fun, it may be a life saver. Approximately 60 percent of Americans don’t have enough to make it through a full month on just their emergency savings — a huge problem if you’ve been watching the job market lately. If you’re in that group, a windfall might be your best opportunity for actually starting an emergency fund. If you’ve got a little bit of money already put away for a rainy day, using even a portion of your holiday gift to pad it can pay off. I’ve got my emergency fund in the savings account with the highest interest rate I could find: I’ve already put a few windfalls in there, and I’ve got the comfort of knowing that they’re actually earning me a little money.

    2. Set aside a few dollars for something fun

    Saving money all the time can be tough. More than a few people fall off the frugality wagon because it’s depressing to save every single cent you can. What’s the point of saving every little bit if you don’t get to enjoy your savings on occasion? I wouldn’t suggest spending all of your money on entertainment, but there’s nothing wrong with setting aside a few dollars of ‘play money.’ Depending on the windfall, using a fraction of your gift towards fun could be the equivalent of a dinner out or a new television — if you can afford it, neither is unreasonable.

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    3. Make an investment

    The stock market might make most investors cringe right now, but that doesn’t actually mean that investment is a bad choice. There are still many conservative investment options that can provide a safe place to keep your money and earn a little interest. Those conservative investments don’t provide the return of riskier choices, of course, but they can still provide a little income. Depending on your long-term financial goals, stocks may not be a horrible idea either — consider consulting a financial planner if you want to invest a significant amount of your windfall.

    4. Share the wealth

    I don’t tithe a certain percentage of my income, although I know people who do — including when they receive windfalls. I do believe, however, that it’s good to support causes you believe in (especially when your own financial situation is comfortable). Many non-profits are struggling this year as donations have dropped. If you have made a charitable contribution in years past but have cut back this year, think about donating even a few dollars of your windfall.

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    5. Pay down debt

    Odds are pretty good that you’re already working on paying down any consumer debt you might have — the balances on your credit cards and accounts. Applying a windfall to those balances can not only help you eliminate your debt faster, but it can also save you money in the long run. If you can wipe out consumer debt, you don’t have to pay interest on it. If your credit card balances are in great shape, the same holds true for your ‘good’ debt: mortgages and school loans are considered good debt because they help you earn and save money in the long run. Still, they’re both forms of debt and the faster you pay them off, the less interest you pay.

    6. Put it towards a bigger goal

    Saving up for a down payment on a house? Or for Junior’s education? If you’ve got a big goal that you’re saving up for, a windfall may help move you along to your goal faster than you might otherwise manage. Especially if you have a little time to save up for a goal, like Junior’s college, interest can turn even a few dollars into a larger amount — there are special investment options created for just such goals, like 529 plans. If you are looking at a shorter-term goal, you can often use that savings as a sort of emergency fund: you won’t want to pull money away from your goal, but you won’t be in too much trouble if you do.

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    7. Mix and match

    No matter how small a windfall is, you can divide it among these options if you choose. Dividing a monetary gift between your goals can give you an opportunity to move forward on all of them — if you feel like you’ve only made progress in one area this year, you have the opportunity to make a little progress on all the rest before the year ends. In some cases, it may be crucial to get ahead on a particular goal: you’ll want to take your finances into account to make your decision. And if you have any other ideas for using a windfall, please share them in the comments.

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    Last Updated on July 9, 2019

    How to Stay Motivated and Reach Your Big Goals in Life

    How to Stay Motivated and Reach Your Big Goals in Life

    It is hardly a secret that the key to successfully accomplishing one goal after another is staying motivated. There are, of course, tasks which successful people may not like at all, yet they find motivation to complete them because they recognize how each particular task serves a greater goal.

    So how to stay motivated most of the time? Here are 5 simple yet effective ways on how to stay motivated and get what you want:

    1. Find the Good Reasons

    Anything you do, no matter how simple, has a number of good reasons behind it.

    You may not be able to find good reasons to do some tasks at first but, if you take just a few moments to analyze them, you will easily spot something good. We also have many tasks which don’t need any reasoning at all – we’ve been doing them for so long that they feel natural.

    If you’re ever stuck with some tasks you hate and there seems to be no motivation to complete it whatsoever, here’s what you need to do: find your good reasons.

    Even when you set goals, there needs to be reasons behind these goals. They may not be obvious, but stay at it until you see some, as this will bring your motivation back and will help you finish the task.

    Some ideas for what a good reason can be:

    • A material reward – quite often, you will get paid for doing something you normally don’t like doing at all.
    • Personal gain – you will learn something new or will perhaps improve yourself in a certain way.
    • A feeling of accomplishment – at least you’ll be able to walk away feeling great about finding the motivation and courage to complete such a tedious task.
    • A step closer to your bigger goal – even the biggest accomplishments in history have started small and relied on simple and far less pleasant tasks than you might be working on. Every task you complete brings you closer to the ultimate goal, and acknowledging this always feels good.

    2. Make It Fun

    When it comes to motivation, attitude is everything. Different people may have completely opposite feelings towards the same task: some will hate it, others will love it.

    Why do you think this happens? It’s simple: some of us find ways to make any task interesting and fun to do!

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    Take sports for example. Visiting your local gym daily for a half-an-hour workout session sounds rather boring to some. Yet many others love the idea!

    They like exercising not only because they recognize the good reasons behind it, but simply because it’s fun! At certain time of their daily schedule, they find going to gym to be the best thing to do, simply because nothing else will fit their time and lifestyle so perfectly.

    Depending on how you look at it, you can have fun doing just about anything! Just look for ways of having fun, and you’ll find them!

    A simple approach is to start working on any task by asking yourself a few questions:

    • How can I enjoy this task?
    • What can I do to make this task fun for myself and possibly for others?
    • How can I make this work the best part of my day?

    As long as you learn to have the definite expectation of any task being potentially enjoyable, you will start to feel motivated.

    Some of you will probably think of a thing or two which are valid exceptions from this statement, like something you always hate doing no matter how hard you try making it fun. You’re probably right, and that’s why I don’t claim everything to be fun.

    However, most tasks have a great potential of being enjoyable, and so looking for ways to have fun while working is definitely a good habit to acquire.

    3. Take a Different Approach

    When something doesn’t feel right, it’s always a good time to take a moment and look for a different approach for the task.

    You may be doing everything correctly and most efficiently, but such approach isn’t necessarily the most motivating one. Quite often, you can find a number of obvious tweaks to your current approach which will both change your experience and open up new possibilities.

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    That’s why saying “one way or another” is so common — if you really want to accomplish your goal, there is always a way; and most likely, there’s more than one way.

    If a certain approach doesn’t work for you, find another one, and keep trying until you find the one which will both keep you motivated and get you the desired results.

    Some people think that trying a different approach means giving up. They take pride in being really stubborn and refusing to try any other options on their way towards the goal.

    My opinion on this is that the power of focus is great, but you should be focusing on your goal, and not limiting your options by focusing on just one way to accomplish it it.

    4. Recognize Your Progress

    Everything you may be working on can be easily split into smaller parts and stages. For most goals, it is quite natural to split the process of accomplishing them into smaller tasks and milestones. There are a few reasons behind doing this, and one of them is tracking your progress.

    We track our progress automatically with most activities. But to stay motivated, you need to recognize your progress, not merely track it.

    Here’s how tracking and recognizing your progress is different:

    Tracking is merely taking a note of having reached a certain stage in your process. Recognizing is taking time to look at a bigger picture and realize where exactly you are, and how much more you have left to do.

    For example, if you’re going to read a book, always start by going through the contents table. Getting familiar with chapter titles and memorizing their total number will make it easier for you to recognize your progress as you read. Confirming how many pages your book has before starting it is also a good idea.

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    You see, reading any book you will be automatically looking at page numbers and chapter titles, but without knowing the total number of pages, this information will have little meaning.

    Somehow, it is human nature to always want things to happen in short term or even at once. Even though we split complex tasks into simpler actions, we don’t quite feel the satisfaction until all is done and the task is fully complete.

    For many scenarios though, the task is so vast that such approach will drain all the motivation out of you long before you have a chance to reach your goal. That’s why it is important to always take small steps and recognize the positive different and progress made. This is how your motivation can sustain in long term.

    5. Reward Yourself

    This is a trick everyone likes: rewarding yourself is always pleasant. This is also one of the easiest and at the same time most powerful ways to stay motivated!

    Feeling down about doing something? Dread the idea of working on some task? Hate the whole idea of working? You’re not alone.

    Right from the beginning, agree on some deliverables which will justify yourself getting rewarded. As soon as you get one of the agreed results, take time to reward yourself in some way.

    For some tasks, just taking a break and relaxing for a few minutes will do.

    For others, you may want to get a fresh cup of coffee and even treat yourself a dessert.

    For even bigger and more demanding tasks, reward yourself by doing something even more enjoyable, like going to a cinema or taking a trip to some place nice, or even buying yourself something.

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    Your progress may not seem to others like anything worth celebrating but, take time and do it anyway! It is your task and your reward, so any ways to stay motivated are good.

    The more you reward yourself for the honestly made progress, the more motivated you will feel about reaching new milestones, thus finally accomplishing your goal.

    Mix and Match

    Now that you have these five ways of staying motivated, it is a good moment to give you the key to them all: mix and match!

    Pick one of the techniques and apply it to your situation. If it doesn’t work, or if you simply want to get more motivated, try another technique right way. Mix different approaches and match them to your task for the best results.

    Just think about it: Finding good reasons to work on your task is bound to helping you feel better; and identifying ways to make it fun will help you enjoy the task even more.

    Or, if you plan a few points for easier tracking of your progress and on top of that, agree on rewarding yourself as you go; this will make you feel most motivated about anything you have to work through.

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    Featured photo credit: Lucas Lenzi via unsplash.com

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