1 00:00:03,000 --> 00:00:09,320 Speaker 1: Welcome to Before Breakfast, a production of iHeartRadio. Good Morning, 2 00:00:10,840 --> 00:00:16,600 Speaker 1: This is Laura. Welcome to the Before Breakfast podcast. Today's 3 00:00:16,600 --> 00:00:20,200 Speaker 1: tip is about what to do with a small windfall. 4 00:00:21,440 --> 00:00:25,480 Speaker 1: It is fun to use money intentionally rather than see 5 00:00:25,520 --> 00:00:28,560 Speaker 1: it all disappear into the same wash of money going 6 00:00:28,640 --> 00:00:32,400 Speaker 1: in and out. So if you do find yourself with 7 00:00:32,440 --> 00:00:36,640 Speaker 1: a little extra sometime, here are some ways to think 8 00:00:36,640 --> 00:00:41,360 Speaker 1: about it. So today's tip was inspired by a recent 9 00:00:41,440 --> 00:00:45,440 Speaker 1: conversation about budgeting. I have run my own business for 10 00:00:45,520 --> 00:00:48,920 Speaker 1: many years, and my income tends not to come in 11 00:00:49,280 --> 00:00:53,240 Speaker 1: at regular intervals. But I know a number of people 12 00:00:53,280 --> 00:00:56,279 Speaker 1: get paid every week or every other week on a 13 00:00:56,280 --> 00:00:59,920 Speaker 1: certain day. Now, normally this would mean either to or 14 00:01:00,040 --> 00:01:03,200 Speaker 1: four paychecks a month, but on occasion, you get an 15 00:01:03,360 --> 00:01:06,360 Speaker 1: extra paycheck a month, just by virtue of where the 16 00:01:06,440 --> 00:01:09,680 Speaker 1: days of the week happen to fall. Twenty six paychecks 17 00:01:09,680 --> 00:01:14,000 Speaker 1: a year means two most months, but three in two months. 18 00:01:15,080 --> 00:01:18,480 Speaker 1: If the vast majority of your spending is budgeted out 19 00:01:18,680 --> 00:01:23,520 Speaker 1: monthly based on two paychecks, then getting an extra paycheck 20 00:01:24,080 --> 00:01:27,480 Speaker 1: can feel like a little bonus. Or perhaps you might 21 00:01:27,520 --> 00:01:30,320 Speaker 1: get a small windfall for other reasons too, like a 22 00:01:30,360 --> 00:01:33,440 Speaker 1: slightly bigger tax refund than you thought you'd get, or 23 00:01:33,480 --> 00:01:36,520 Speaker 1: maybe it's a rebate on something that finally came through. 24 00:01:37,800 --> 00:01:43,040 Speaker 1: So when this happens, what should you do with it now? Obviously, 25 00:01:43,040 --> 00:01:45,840 Speaker 1: if one has any high interest debt, the money should 26 00:01:45,840 --> 00:01:48,320 Speaker 1: go to that. But if that is not the case, 27 00:01:48,360 --> 00:01:50,200 Speaker 1: which I'm guessing maybe the case for a lot of 28 00:01:50,200 --> 00:01:52,800 Speaker 1: people listening to this, then I think this can be 29 00:01:52,800 --> 00:01:56,880 Speaker 1: a fun question. A small windfall isn't going to change 30 00:01:56,880 --> 00:01:59,640 Speaker 1: your life, but of course that means it's easy to 31 00:01:59,640 --> 00:02:03,200 Speaker 1: see a small windfall disappear into the wash of money 32 00:02:03,200 --> 00:02:06,400 Speaker 1: going in and out for various things. It would be 33 00:02:06,440 --> 00:02:11,480 Speaker 1: more fun to use it intentionally. So I personally love 34 00:02:11,560 --> 00:02:14,960 Speaker 1: the idea of peace of mind, and so if your 35 00:02:15,040 --> 00:02:19,120 Speaker 1: emergency fund is a bit underfunded, you might allocate a 36 00:02:19,120 --> 00:02:22,760 Speaker 1: bit more to that if things did go awry, not 37 00:02:22,880 --> 00:02:25,720 Speaker 1: needing to worry about money for even another two weeks 38 00:02:25,800 --> 00:02:29,600 Speaker 1: or so could buy you breathing room. If you did 39 00:02:29,639 --> 00:02:31,880 Speaker 1: want to spend the windfall on something, I think the 40 00:02:32,000 --> 00:02:35,200 Speaker 1: absolute best thing to spend it on would be an experience. 41 00:02:36,280 --> 00:02:38,480 Speaker 1: You will make memories that will last a lot longer 42 00:02:38,520 --> 00:02:42,120 Speaker 1: than most other things money can buy. Maybe there's a 43 00:02:42,120 --> 00:02:45,320 Speaker 1: weekend trip you'd like to take somewhere, make a long 44 00:02:45,400 --> 00:02:49,680 Speaker 1: weekend of it, go somewhere fun, and then consciously record 45 00:02:49,720 --> 00:02:53,800 Speaker 1: the memories to think about later. This is what my 46 00:02:53,880 --> 00:02:58,360 Speaker 1: windfall enabled. Or it might be an experience like taking 47 00:02:58,400 --> 00:03:01,840 Speaker 1: your family boding or buying a membership somewhere that you 48 00:03:02,000 --> 00:03:07,480 Speaker 1: visit again and again. Another good category would be social spending. 49 00:03:08,440 --> 00:03:12,160 Speaker 1: It's fun to treat people to things, and this is 50 00:03:12,200 --> 00:03:17,079 Speaker 1: almost universally reciprocated, which means the windfall will keep generating 51 00:03:17,120 --> 00:03:20,600 Speaker 1: benefits in the future. For instance, you might decide to 52 00:03:20,639 --> 00:03:25,120 Speaker 1: take four different friends out to dinner, either individually or altogether. 53 00:03:26,320 --> 00:03:29,040 Speaker 1: Either way, these people are highly likely to then invite 54 00:03:29,080 --> 00:03:31,720 Speaker 1: you to do things with them, which means you'll get 55 00:03:31,760 --> 00:03:35,000 Speaker 1: a lot of lunch or coffee invitations spread out over 56 00:03:35,000 --> 00:03:38,440 Speaker 1: the next few months. You could also create a lot 57 00:03:38,440 --> 00:03:41,160 Speaker 1: of meaning by donating at least part of a windfall. 58 00:03:42,120 --> 00:03:44,280 Speaker 1: There are many worthy causes in the world, but I 59 00:03:44,280 --> 00:03:47,600 Speaker 1: think you'd enjoy this most by donating to a smaller 60 00:03:47,680 --> 00:03:51,520 Speaker 1: group where it would make a big difference, perhaps a 61 00:03:51,560 --> 00:03:56,520 Speaker 1: local place where you already volunteer. Then you are there 62 00:03:57,440 --> 00:04:00,560 Speaker 1: seeing what your money is enabling. It is so much 63 00:04:00,560 --> 00:04:05,000 Speaker 1: more fun than losing track of it. In any case, 64 00:04:05,080 --> 00:04:07,440 Speaker 1: even if you don't have a windfall on the horizon, 65 00:04:07,480 --> 00:04:10,400 Speaker 1: this can be a fun question to ask yourself, what 66 00:04:10,440 --> 00:04:14,640 Speaker 1: would you do with a small windfall? People sometimes daydream 67 00:04:14,720 --> 00:04:16,520 Speaker 1: about what they would do if they won the lottery, 68 00:04:17,000 --> 00:04:20,760 Speaker 1: but this is highly unlikely to happen, particularly if you 69 00:04:20,760 --> 00:04:24,279 Speaker 1: don't usually buy lottery tickets. The odds of a small 70 00:04:24,320 --> 00:04:28,680 Speaker 1: windfall happening, though, are reasonably good. People who budget monthly 71 00:04:29,240 --> 00:04:32,159 Speaker 1: but get paid weekly or bi weekly, we'll see it 72 00:04:32,160 --> 00:04:35,560 Speaker 1: happen about twice a year, and many other people will 73 00:04:35,600 --> 00:04:38,400 Speaker 1: no doubt see some amount of extra cash come into 74 00:04:38,400 --> 00:04:42,080 Speaker 1: their lives at some point. So make yourself a list 75 00:04:42,120 --> 00:04:45,880 Speaker 1: of what might be fun, and then, who knows, maybe 76 00:04:45,880 --> 00:04:48,080 Speaker 1: you will figure out a way to make those things happen, 77 00:04:48,960 --> 00:04:54,440 Speaker 1: regardless of what is going on with your finances in 78 00:04:54,480 --> 00:05:00,080 Speaker 1: the meantime. This is Laura. Thanks for listening, and here's 79 00:05:00,120 --> 00:05:09,679 Speaker 1: to making the most of our time. Thanks for listening 80 00:05:09,760 --> 00:05:14,159 Speaker 1: to Before Breakfast. If you've got questions, ideas, or feedback, 81 00:05:14,480 --> 00:05:23,800 Speaker 1: you can reach me at Laura at Laura vandercam dot com. 82 00:05:23,920 --> 00:05:28,000 Speaker 1: Before Breakfast is a production of iHeartMedia. For more podcasts 83 00:05:28,000 --> 00:05:32,600 Speaker 1: from iHeartMedia, Please visit the iHeartRadio app, Apple podcasts, or 84 00:05:32,640 --> 00:05:34,480 Speaker 1: wherever you listen to your favorite shows.