You finally hooked that rich client, won the lottery or received a large order - money suddenly falling on your head cannot but rejoice. In order not to be left with nothing after a month, you need to plan your expenses. Below 5 life hacks from those who had a chance to figure this out.
Set aside most of the money
A large amount of money will catapult you towards your big financial goal, for example, paying a loan, buying a house or land, traveling around the world. If you don’t have such a goal, save money for a rainy day or make investments - if something happens, you will have some savings.
Spend a little fun
Putting aside money to finally pay off a huge loan is the most practical and boring thing you can do with money. Putting money into a savings account, without spending a dime on yourself, you feel with all the fibers of your soul that the possibilities for having fun disappear. A little - 10% of the amount is recommended - spending money on yourself will not hurt anyone.
Take care of others
Spend money on someone other than yourself: make a donation to a charity fund or take your parents to a restaurant. Pay back - literally and figuratively - to others. Most likely, it was they who made you who you are now.
Buy time
Do you remember last year’s study, which said that the only way to buy happiness for money is to buy time? Most likely not, but that's okay. In a way, you really can buy time. You can pay for someone to do your unloved activities for you. For example, hire a cleaning service, buy grocery delivery, order a taxi.
If your newly acquired amount of money is big enough, you can think about moving closer to work, to relatives or to places that you often go to. This way you will save tremendous time on the road.
If you are a freelancer or a part-time job, invest in your business
If you received this unexpected amount of money from freelance or part-time work, then it is a good idea to invest it back. Business needs capital to grow. Sign up for continuing education courses, buy ads, hire a designer for a professional logo, and so on. Get well prepared - the next rich client is just around the corner.
The Freelancers Union offers a few more things that you should think about if you have extra money:
- What debts can you pay?
- What investments in your business will bring you the most benefit?
- And do not forget to fill out tax returns.
You should also think about starting to postpone retirement - because if you are engaged in freelance or part-time jobs, you will not have government payments.
And the last thing for freelancers is to set aside money to cover expenses until the next payday.
Of course, high earnings may be temporary. Therefore put off unimportant things and pay your debts. Use the remaining money to live your life and improve the quality of life of the people around you.
