The Budget Fashionista

What do you do when you get an unexpected windfall? The windfall doesn't even have to be all that huge…an unexpected $500 is almost as delightful as an unexpected $3000, mainly because you weren't expecting it. When fortune smiles upon you, what should you do with the money?

Don't squander it away. This doesn't mean you shouldn't take the money and have some fun with it, but don't just put in it your checking account and then let it slowly dissipate, never really amounting to anything. It's far better to blow it all on a fun purchase than to eventually look back and think to yourself, "Whatever happened to that extra money I had?"

So whether it's a tax refund, a bonus from work, or a gift from a benevolent relative, here is what you should consider doing with your unexpected windfall:

1. Put it toward debt. Okay, so this is a pretty boring suggestion and probably not very appealing, but it's definitely the prudent thing to do with the money.

2. Put it in a savings account. Another relatively boring suggestion, but if you're trying to build up an emergency fund this can be a great addition to the account.

3. Make the purchase you have been putting off. Maybe you need to get a new engine for your car, or you want to enroll in a college class, or your wardrobe needs some serious updating. Use your windfall for whatever it is you were holding off on paying for because of budget restraints.

4. Have a blast! Go ahead and splurge on whatever it is you enjoy: take a vacation, buy the supplies for a new hobby you want to try, do something out of the ordinary.

5. Invest the money. Maybe this is a good time to try your hands at buying some stock and playing around with it a bit. You may find that you have a knack for it, and may actually increase your windfall.

6. Give the money away…or at least a portion of it. Pick a charity you would like to support, and send some of the money to them. After all, what better thing is there to do with an unexpected windfall then to extend it on as someone else's windfall?

The trick is to make sure you do something with the money instead of just letting it dissolve away without anything to show for it. Even if you do nothing more than splurge on a new collection of shoes, at least you were able to enjoy the money and didn't just let it disappear without anything to show for it.