Smarter Ways To Spend Extra Cash
What Should You Do With Extra Cash?
- Put extra cash toward your highest-interest debt first to cut what you owe.
- Build an emergency fund so a surprise bill does not become new debt.
- Save for future goals like a home, a car, or your family.
- Keep a small share for yourself so the plan still feels rewarding.
Extra cash is always welcome to come by. It might come from a bonus, a raise, or a side hustle. Either way, a little more money helps you feel steadier about where you stand. But with additional income comes the temptation to spend it on things you haven’t been able to in the past. Vacations, new gadgets, clothes, and shoes…the list goes on.
While we don’t want to eliminate the joy of having some extra cash, there are smarter ways to spend it. Here, LendNation is sharing our best tips for doing just that so you can better plan for your future. For a step-by-step plan, see our guide.
Pay Off High-Interest Debt First
Nearly 200 million Americans have debt. Between mortgages, cars, education, and daily living, credit card bills can add up quickly. Use your extra cash to tackle your highest-interest debt first. Once you pay that off, roll up that payment amount into other debts, and continue the snowball effect as often as you can. If your excess income isn’t quite enough to tackle your debt yet, simply make an extra mortgage or credit card payment. It may not feel like much, but each time you make an additional payment, you shave a month off your ultimate pay-off date.
Financial experts recommend having an emergency fund for, well, emergencies. When a surprise bill shows up or work slows down, you should lean on these funds first before racking up more debt. Contributing extra cash to your emergency fund may not feel like an investment — especially when you are starting out— but it helps you prepare for future emergencies, should you ever face one.
Save for Future Goals
In addition to an emergency fund, you should also keep in mind other future expenses. Retirement, planning for children, weddings, or a new home. These all come with real costs. If you already set money aside for these goals, add some of your extra cash to them. If you have not started yet, opening a savings account is a simple first step. Small, steady deposits grow over time.
Make Home Improvements
Making upgrades to your home is an excellent way to spend excess money. Not only do you make your house a better place to live, but you can potentially increase the value of your home if you don’t plan on living there forever.Choose your projects with care, since some return a higher profit than others.
Spend some on Yourself
Extra cash is not only about putting it all away. You should also take the time to enjoy it. Depending on how much you have and how you choose to save it, set aside a smaller percentage to spend on yourself. Maybe it’s a nice pair of shoes you’ve been eyeing for a while, or a weekend trip you have wanted to take. You work hard for your money, and you should reward yourself as such! Pro tip: Put money toward savings or debt first, then spend what is left on yourself. That keeps the fun part from eating the whole amount.
Turn to LendNation for Extra Cash
When extra cash isn’t as easy to come by, or you find yourself in an emergency financial situation, turn to LendNation. Our payday and installment loan options make getting cash quick and simple, and title loans are available in-store. Apply online today or find a store near you!