If you have a child you just got a lump some of money from the government. I got 840$ (2 children x 60$ x 7 months). What a gift!
Too many people might spend it on a new device or a few expensive meals.
What could you with 840$ today? Here are 4 ways you can leverage this gift if you don’t need the money for something urgent.
1. Start an RESP or add to your existing one.
2. Start your 1000$ Emergency Fund.
An emergency fund is meant to help you in a bind (car repair, roof, job loss). Most people suggest 3 months of salary in case you lose your job but you got to start some where. Add 160$ to the 840$ and start your emergency fund today with 1000$.
3. Pay off Debt.
Statistics tell us that Canadians spend/owe about 1.60$ on every dollar they make. I.E. if you’re reading this you’ve got debt somewhere. Worse, it’s growing at rate of 4-5% annually (20-30% if it’s in credit card debt).
840$ of your unpaid debt is increasing by 33$ (4%) a year, or 168$ (20%) a year if it’s sitting on your credit card. Pay some off today.
4. Be Generous.
Have you been wanting to give to a great cause but haven’t been able to lately. Consider giving 10-20% of this free money away. We often regret our purchases, but we rarely regret our generosity.
(Bonus) Enjoy it.
If you’re giving and savings are already established and your debt is under control or nil, then enjoy this gift anyway you’d like.
What are you planning to do with the extra cash? Leave your comments below.
*an event you don't need cash for - free Community BBQ this August 16th