1. Start an Emergency fund. If you don't have an emergency fund, strongly consider opening one and depositing your windfall for a rainy day. While it might not be enough to create a full- fledged emergency fund, it'll be a good start.
2. Pay down your debt. Whether it's credit cards, an auto loan, or a student loan, you need to get that monkey off your back. So add your windfall to your debt snowball and keep on digging.
3.Adjust your withholdings. You should consider adjusting your withholdings so you don't end up giving the government an interest free loan during the upcoming year.
4. Up your current saving rate. Most American are not saving nearing enough for retirement. Although 10% is a good starting point, you should keep increasing your saving rate until you are near 30% saving rate.
5. Look into Increasing your protections. Make sure all your protection are in order. Health, disability, home, auto, and life insurance. If you are not properly protected everything you are building and saving for can be taken or lost in an instant.
Any questions or comments, please feel free to respond, post in comments or call us at 347-661-6234
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