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StitcherWindfalls come once in a blue moon. When they do, it feels like hitting the jackpot—suddenly anything seems possible. But if we don’t use them wisely, they can disappear just as fast as they arrived. In this episode, we’re walking through exactly what to do with extra cash so it actually improves your life!
Your brain is lying to you, do not blow this money on an Amazon shopping spree, vacation, or random spending.
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Where You Might Have Extra Cash
Jen and Jill remind us that extra cash isn’t just “free money” it comes from somewhere. A tax refund means you overpaid taxes, a bonus is the reward for your hard work, profit from a sale is a return on your time invested, life insurance shows someone cares about your well-being, and lottery winnings are often just getting back what you already spent.
Therefore, instead of asking, “What should I do with this money?” ask, “What problem in my life can this money solve?” This small shift in thinking can turn unexpected cash into meaningful wins.
5 Steps to Do With Your Extra Cash
Once you know which problem that money can solve, start by topping off your emergency fund so you have a reliable safety net. Then focus on paying down any high-interest debt, since that interest can grow faster than typical investments.
After that, look at your life and ask what one problem this money could solve. Fixing something small but persistent can remove a lot of daily friction. If none of those needs apply, investing the remaining money is a simple way to put it toward future goals.
What’s the best decision you’ve personally made with unexpected money?
Jill did a debt paydown, while Jen did a lasik surgery.
Bill of The Week
Thank you Allison for sharing your bill about saving $ on your spectrum internet by switching AND getting better service for less money (w/ 10yr price guarantee)
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews of our book Buy What You Love Without Going Broke and we especially loved this one from:
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The description nailed it when they said “this is a relatable personal finance guide.. [about] how to control impulse spending”. If you are battling the ever-mounting pressure of consumerism and are struggling to “keep up with the Joneses” on social media, I highly recommend this book!
A few of my favorite takeaways: We know social media is a highlight reel but that hasn’t stopped it from fueling the idea that the grass is greener on the other side — perfect doesn’t exist It is an illusion that more money will solve our spending problems. In fact more money gives more fuel to spending problems. Global consumption of fast fashion has increased by 400% in the last 20 years and 85% of textiles end of in landfills.
If you want to check out our monthly challenge community head to frugalfriendspodcast.com/club to see what challenge we have coming up next.
Keep leaving us reviews on iTunes or Stitcher, and sending the screenshot to reviews@frugalfriendspodcast.com. And don’t forget to share your favorite quote from the episode by using the hashtag #FrugalFriendsNote. 😉