Wednesday, February 17, 2010

What will you do with unexpected windfall of money?

Let's assume you had a windfall, or may be someone gifted you Rs. 10,000. Now, what would you do with the money?

One option is that you can spend that money on wants/needs. How about new dress, new movie, nice dinner?

Other option is that you can save it for future. Save it somewhere in your house so that it can be used when you are out of cash.

And one more option would be to invest it for future. This money came unexpectedly after all, so today's life can run smoothly without same but it might help in future. So, let it grow for future. Now, if you decide to invest it for future, again there are two options to decide which bucket of investment:

1) Safe Investment - You do not mind if the returns of your investment are less, you anyhow don't want to lose money. For example a Fixed Deposit.
2) Risky Investment - You are ready to take little risk with the money in lieu of possibility of higher returns. After all, this Rs 10,000 was never there to start with.

If this happens to you, what will you choose?
None of the approaches is wrong; it just shows your outlook towards money.


  1. Right now we are coming across a small windfall of money - our income tax return. My husband is taking about half of it and returning to Syria to visit his homeland for the first time in 15 years. I can't begrudge him time spent with his 80-year-old father and his brothers and sisters he hasn't seen in all that time. I'm just glad we have the extra money that he can take this opportunity and go.

    As for the rest of the money, however, into the bank it goes. :)

  2. I think you are using it in absolutely wonderful way.

  3. When i worked as apprentice, I used to get OT( overtime) ,and I always kept it out of my budget, called it as"black money" :)and had used it
    to buy things for loved ones or to my self say music player etc.
    keeping with that tradition,I think i will spend it , it will definitely won't be just for me, at least 25% would go for social welfare and rest depends on situation.
    unless and until i feel xtreme pressure from family i wouldn't put it on long term investment.

  4. I'll be tempted to use it for my wants too...

  5. Well..I am a first time reading your blog today..
    This is what I would do with this extra surplus money (in decreasing priority):

    -> Pay off credit-card loans, if I have any.
    -> Partial (or complete) pre-payment of home loan.
    -> Invest in Retirement saving bucket. (mostly debt).

  6. @Puneet
    Awesome. I wish I could stick to same.
    I somehow get urge to splurge with such windfall. I'll try to get motivated from you.
    Thanks for dropping by. :)