When unexpected cash makes its way into your pocket, the joyous feeling is often tied to the ponderance of what you are going to spend the money on. A designer bag? New shoes? Maybe even a shopping spree at Lenox Square? The possibilities are endless. Before you run to the mall, remember that smart spending decisions are much more important than a pair of golden goose sneakers. Here are some ways that you can use this money to help you in the future.
- Create or add to an emergency fund
2020 has taught us to expect the unexpected, and be ready to pay for it. Creating an emergency fund is a great financial cushion for you to fall back on if something unexpected happens to come around. Put this money away in a savings account, not only so you don’t feel tempted to spend it but so it can also collect interest. Click here
for a list of some good high yield savings accounts where you can let your money grow!
- Pay off some loans or debt
If you have unsubsidized student loans (which means that the loan begins accumulating interest from when it is originally deposited in your bank account) it might be a good idea to put some of the money towards paying off the loan. It is essentially cheaper to pay off your loan earlier because it will accumulate less interest in its lifetime.
- Get ahead on school supplies for the upcoming semester
We all know school supplies and textbooks come at a hefty price. If you know you are going to need notebooks, pens and pencils, post-its, or even a calculator for your new math major, you can use some of the money to buy it now. Or, if you need to replace your laptop or tablet, this would be a good time to invest in one. Another option is saving the money for textbooks in upcoming semesters.
- Put it towards living expenses
Groceries and transportation (have you seen the gas prices these days?!) are just a few of the living expenses that can definitely build up. Creating a budget for these things and putting aside money for them can alleviate some of the stress associated with keeping it with these recurring expenses.
- Save, Save, Save!
If you’re undecided on what to spend it on, saving it is the best option. As the holidays are approaching, It may be a good idea to save the money for flights home and back to Emory for the spring or even next semester’s tuition. Offsetting some of these financial costs now can cause them from becoming financial burdens later on.
If you have questions about managing money and the best money managing strategy for you, our peer mentors are available for one-on-one appointments! Click here to book with one of our peer mentors!