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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 October 30, 2018

    How to Motivate Yourself: 13 Simple Ways You Can Try Right Now

    How to Motivate Yourself: 13 Simple Ways You Can Try Right Now

    Who needs Tony Robbins when you can motivate yourself? Overcoming the emotional hurdle to get stuff done when you’d rather sit on the couch isn’t always easy. But unless calling in sick and waking up at noon have no consequences for you, it’s often a must.

    For those of you who never procrastinate, distract yourself or drag your feet when you should be doing something important, well done so far! But for the rest of you, it’s good to have a library of motivational boosters to move along.

    Whether you’re starting a buisiness, trying to los weight or breaking a bad habit, you’ll learn how to motivate yourself with different techniques in this article.

    13 Simple Ways to Motivate Yourself Right Now

    Despite your best efforts, passion, habits and a flow-producing environment can fail. In that case, it’s time to find whatever emotional pump-up you can use to get started:

    1. Go back to “why”

    Focusing on a dull task doesn’t make it any more attractive. Zooming out and asking yourself why you are bothering in the first place will make it more appealing.

    If you can’t figure out why, then there’s a good chance you shouldn’t bother with it in the first place.

    2. Go for five

    Start working for five minutes. Often that little push will be enough to get you going.

    3. Move around

    Get your body moving as you would if you were extremely motivated to do something. This ‘faking it’ approach to motivation may seem silly or crude but it works.

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    4. Find the next step

    If it seems impossible to work on a project for you, you can try to focus on the next immediate step.

    Fighting an amorphous blob of work will only cause procrastination. Chunk it up so that it becomes manageable. Learn how to stop procrastinating in this guide.

    5. Find your itch

    What is keeping you from working? Don’t let the itch continue without isolating it and removing the problem.

    Are you unmotivated because you feel overwhelmed, tired, afraid, bored, restless or angry? Maybe it is because you aren’t sure you have time or delegated tasks haven’t been finished yet?

    6. Deconstruct your fears

    I’m sure you don’t have a phobia about getting stuff done. But at the same time, hidden fears or anxieties can keep you from getting real work completed.

    Isolate the unknowns and make yourself confident, you can handle the worst case scenario.

    7. Get a partner

    Find someone who will motivate you when you’re feeling lazy. I have a friend I go to the gym with. Besides spotting weight, having a friend can help motivate you to work hard when you’d normally quit.

    8. Kickstart your day

    Plan out tomorrow. Get up early and place all the important things early in the morning. Building momentum early in the day can usually carry you forward far later.

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    Having a morning routine is a good idea for you to stay motivated!

    9. Read books

    Read not just self-help or motivational books but any book that has new ideas. New ideas get your mental gears turning and can build motivation. Here’re more reasons to read every day.

    Learning new ideas puts your brain in motion so it requires less time to speed up to your tasks.

    10. Get the right tools

    Your environment can have a profound effect on your enthusiasm. Computers that are too slow, inefficient applications or a vehicle that breaks down constantly can kill your motivation.

    Building motivation is almost as important as avoiding the traps that can stop it.

    11. Be careful with the small problems

    The worst killer of motivation is facing a seemingly small problem that creates endless frustration.

    Reframe little problems that must be fixed as bigger ones or they will kill any drive you have.

    12. Develop a mantra

    Find a few statements that focus your mind and motivate you. It doesn’t matter whether they are pulled from a tacky motivational poster or just a few words to tell you what to do.

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    If you aren’t sure where to start, a good personal mantra is “Do it now!” You can find more here too: 7 Empowering Affirmations That Will Help You Be Mentally Strong

    13. Build on success

    Success creates success. When you’ve just won, it is easy to feel motivated about almost anything. Emotions tend not to be situation specific, so a small win, whether it is a compliment from a colleague or finishing two thirds of your tasks before noon can turn you into a juggernaut.

    There are many ways you can place small successes earlier on to spur motivation later. Structuring your to-do lists, placing straightforward tasks such as exercising early in the day or giving yourself an affirmation can do the trick.

    How to Stay Motivated Forever (Without Motivation Tricks)

    The best way to motivate yourself is to organize your life so you don’t have to. If work is a constant battle for you, perhaps it is time to start thinking about a new job. The idea is that explicit motivational techniques should be a backup, not your regular routine.

    Here are some other things to consider making work flow more naturally:

    Passion

    Do things you have a passion for. We all have to do things we don’t want to. But if life has become a chronic source of dull chores, you’ve got a big problem that needs fixing.

    Not sure what your passion is to get you motivated? This will help you:

    How to Get Motivated and Be Happy Every Day When You Wake Up

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    Habits

    You can’t put everything on autopilot. I’ve found putting a few core habits in place creates a structure for the day.

    Waking up at the same time, working at the same times and having a similar productive routine makes it easier to do the next day.

    This guide will be useful for you if you’re looking to build good habits:

    Understand Your Habits to Control Them 100%

    Flow

    Flow is the state where your mind is completely focused on the task at hand. While there are many factors that go into producing this state, having the right challenge level is a big part.

    Find ways to tweak your tasks so they hover in that sweet spot between boredom and maddening frustration.

    Easily distracted and hard to focus? Here’s your solution.

    Final Thoughts

    With all these tips I’ve shared with you, now you know what to do when you’re feeling unmotivated.

    Find your passion and develop a positive mantra so when the next time negativity hits you again, you know how to stay positive and motivated!

    Featured photo credit: Pexels via pexels.com

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