What to Do with Extra Income?

It might not happen very often, but when you do find yourself with a little extra income, it’s a lovely surprise. You might have been entitled to a tax rebate, received some inheritance money, or won a competition. Whatever the reason you find yourself with some extra money, the next thing you need to do is decide what you’re going to do with it. As tempting as it might be to treat yourself to a few luxuries such as a vacation, a new car, or something else you have been wishing for, you might want to consider more practical options for how you can use this money.

Pay Off Debts

Debt can happen to anyone at any time, and there a plenty of reasons why this could have happened. No matter what the circumstances, though, being in debt can be a stressful experience, particularly if you’re paying off large interest rates as well. If you’re looking to use extra income to pay off debts and would like to simplify that process, you could consider debt consolidation from companies like OneMain. Debt consolidation combines your debts into a single monthly payment, which means you can focus your extra income towards that one payment alone.

Whether you choose to get a loan for debt consolidation or not, using the extra income to help pay off your outstanding debts before they’re due is a smart move.

Invest in Home Improvements

Another smart way you can use that extra income is by investing in some home improvements. Not only can this help to create a more comfortable living space for you, but it should also help to boost the value of your property. Making your house more profitable can be beneficial when you come to sell it in the future and enable you to move to a better property if you want to.

Put it Into Saving Fund

If there are no debts to pay off or any specific purchases you would like to make with this extra income, you could always add it to your saving fund. It’s always wise to have some emergency money put away, and the more you add to it, the more peace of mind you might have if you do face some unexpected expenses in the future. Simply having some savings that you know you can invest in other things like home improvements or getting a new car if you need to can help you feel more in control and relaxed when it comes to your finances.

Donate to Charity

You don’t have to spend that extra money on yourself, and if there is nothing you want or need that additional income for, you could always give it to someone else who does. Whether you donate all or some of that extra income to charity, you will be helping others to raise awareness of a cause that you might be passionate about and contributing to the efforts to improve the lives of others.

If you find yourself with extra income and aren’t sure what to do with it, consider the suggestions above to help you decide.

Related Blog: Getting the Most Out of Work Experience for a Charity

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