Community Chatter: How do you handle a financial windfall?

Everyone loves it when there is a little bit of money left over in the budget at the end of the month, or when that tax refund/work bonus/other unaccounted for money shows up... but what do you do when you get it?  I asked the team how they handled financial windfalls, and as you might expect, the answers are as varied as can be.  

Here is what everyone had to say: 

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From Morgan:

What to do with a windfall? Hmm. I’d usually have a harder time answering that question but now that my husband and I have become homeowners, the answer is easy. Leftover budget money and tax refunds are going to home renovations. Our house was built in 1977 and I don’t think anything had been updated since (I never want to see floral wallpaper again). We’re currently working on removing all the wallpaper to paint, tearing up carpet and replacing it with hardwood floors, and several other updates. We like to build our savings account but currently the majority of extra funds are going to these big projects which I believe will be worth it in the long run.

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From Sasha:

When I have leftover budget funds, I usually add them to my savings account and earn interest. In case of emergency, for example, if I have to travel home (Antigua) or to another state, I would use those funds to pay for my trip. Or if there is a medical emergency and I have to pay out of pocket, that is what would be used as well. Other than that, I will leave it there and let my account grow.

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From Kiala: 

There are my "YOLO" moments, and then the moments I put on my adult thinking cap and make good choices. Thankfully when there is leftover money from our budgeting or tax return, first place I look are my credit card balances. Even something with a small amount can easily be paid off and help me keep my credit looking good. If there's nothing there, it goes straight into savings! It's always great to have that cushion in case unexpected expenses pop up (like when a huge rock hit our windshield on the freeway) or when you hit a big month of family birthdays!

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From Michael:
Lately, I've loved using windfalls to enhance my working space. I've always heard that people justify spending a fortune on a mattress, since they "spend a third of their life there". For better or worse, I'd wager I spend more than a third at my desk. Anything you could ever find on a desk has premium alternatives, whether it's flashier, sturdier, or more ergonomic. Recently, the trend has been all about lights! Mice, keyboards, and even mousepads come trimmed in customizable LEDs. To me, it's less about having a laser show on your desk, and more about matching the aura to my mood. With my 2021 windfalls thus far, I made some major upgrades to my computer itself (pictured is the result). Each light can follow a custom pattern and color. When I'm calm and collected, I use waves of pastel blues and reds, coursing slowly over each fan and wire like a river. When it comes down to crunch time and I have deadlines approaching, I like to ask myself "How can I make this thing visible from space?".

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From Lisa:

Whenever I get a little extra, as long as it is over $100 then I use the rule of three... one-third to charity, one-third to savings, and one-third to spend on whatever I want.   If it is under $100, then it will either go into whatever vacation/house renovation I am saving up for, or to my savings, depending on which needs that little extra bit of love more.  :D   For me, this is the simplest way to make sure that I am focusing on the things that matter for me (savings for the future and giving to charity) but still lets me have that little thrill of splurging on something frivilous or getting a little closer to that vacation goal.   

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So now that you have seen how we handle financial windfalls - what do you do when a little extra money comes your way?  Any tips for how to maximize your spending?  Drop a comment below, we would love to hear from you!