In other articles here on Sow a Dime & Reap a Dollar, I’ve discussed prioritizing spending, wants versus needs, budgeting, waiting 30 days (see links to these articles below), and a variety of other topics aimed at improving your financial future. If the content in those articles didn’t help you with tackling your spending, I want to discuss a strategy to help pay for some wants that might otherwise create a cash flow concern—wait for a windfall.
First, let’s understand what a windfall might be as it relates to personal finance. It would be any unexpected or unusual influx of money. There are many examples of what this might be; some that jump to mind are:
- Inheritance from a relative
- Proceeds from claiming previously unclaimed assets
- Payment for participating in an experimental drug trial
- Birthday / Christmas / Hanukah cash
- Found a $20 bill on the ground
- Uncovered buried treasure in the back yard
- Proceeds from selling goods from your basement on Craigslist
- Winning the lottery
As a corollary to that list, let’s also understand what is not typically a windfall:
- Tax refund
- Pay raise
- Bonus
- Normal paycheck
- 3rd paycheck in a month for those who are paid bi-weekly (happens twice per year)
- Commissions
There are probably other circumstances that qualify as a windfall as well. The point is, one of the easiest ways to fund your wants without creating a shortfall in your bank account is to simply wait to come into some unexpected money!
Links to related articles:
- Why It’s Useful to Prioritize Spending – https://sowadime.com/2020/08/18/why-its-useful-to-prioritize-spending/
- Wait 30 Days – https://sowadime.com/2020/08/22/wait-30-days/
