What To Do With A Windfall?

What could be more fun than having a little extra cash fall unexpectedly into your lap? It might be a tax refund, a small lottery prize or an inheritance. Whatever the source, take a moment to think about how you could best use that money. Here are some ideas that may multiply the value of your money:

Pay off debts, especially credit card balances that carry high interest rates and may be hurting your credit score.
Contribute to a Roth IRA if you're eligible. Your contribution can grow tax-free for use in retirement.
Set up an emergency fund with enough money to cover three to six months of living expenses.

Sure, none of these has the instant gratification of a new car or a strategic addition to your wardrobe. But, believe it or not, you'll benefit from these moves long after that car is a faded memory.

Take the next step

Increase how much you're saving. A small step today may make a big difference in the future.