Did you know by just putting all the unexpected money towards settling debts is the best thing anyone can ever do?
Finance Expert Tiffany Aliche – commonly referred to as The Budgetnista – while speaking in One United One Transaction Conference revealed that any money received without a plan or those discounts from super markets, membership clubs et cetera can be useful in filling that debt gap.
“Unexpected money is any money that you were expecting to spend but did not, or money you were not expecting to receive but did,” Aliche said.
For example, you budgeted to purchase a $50 item only to find it is now selling at $25, instead of grabbing a second item using the remaining cash, it is always prudent to use the balance to settle any biting debt. Many individuals would be tempted to use it in buying other stuffs but that is not the best decision anyway.
Another example is when you go out with a friend expecting to foot the bills only for one of the friends to decide to grab a cheque to pay the bills.
“You were planning to spend that $30 — $30 was gone in your head,” Aliche said. “Let it really be gone, but put it toward your debt. And if you’re debt free, put it toward your savings.” Aliche advised.
Though to some this strategy looks weird but study has it that it helps a great deal in the long run and this will be realized later.
Aliche further advised that for one to not forget small debts easily, they have to download the loaning apps ready on the phone what will make serving them even easier and fast.
The second option is to utilize money you didn’t expect by settling a debt rather than spoiling yourself. For example, you just got a bonus at your work or maybe money for your birthday.
“Even your tax refund check could be unexpected money,” Aliche said. “Even though you’re kind of expecting it, it’s money outside of your normal job.”
She advises that the best thing to do is to quickly reallocate this money within an hour because anything more you will be tempted to use elsewhere.
