Summer is approaching fast and it is that time of the year when you have to go on vacation, refresh your body, soak some sun, and enjoy some precious time with your family. You have already accumulated some extra cash over the long periods of working without a vacation and you are ready to spend some of it luxuriously. Here are some strategic and straightforward ways you can use your extra cash.
- Spoil Yourself
When was the last time you went on a shopping spree all for yourself? We’re typically trained to feel guilty when buying gifts for our own pleasure, but if you have money to spend, there’s no reason to feel guilty. Consider buying yourself lab diamonds or go to the mall and hit all your favorite stores.
- Consider Cruising
A considerable number of Americans have always wanted to cruise from Miami to Puerto Rico and other Caribbean Islands. This is your chance to have a 3-7 days cruise journey and enjoy the voyage loop that is different from the rest. You can cruise with your family and enjoy one of the best cruises in your life. Cruising takes some time to prepare, but you still have some time before summer shows up and you can be ready when that time shows up.
- Up Your Retirement Contributions
If you have consistently remained with some extra cash in your bank account, it is a sign that you can pay more in your retirement account. You will not earn in your place of work for the rest of your life, so it is good if you can consider investing more in your retirement account so that you can have more cash after retiring. If you contribute a huge amount of money, you can be sure that your employer will be highly interested in matching your contributions towards your retirement account.
- Clear Your Debts
You could be having extra dollars in your bank account but you are still servicing your loans. One of the smartest steps you can consider taking is clearing your debts within the shortest time possible. The longer time you spend paying your debts, the more interest you will have to pay. If you can have a strategic plan of paying your debts within a short period, you will be able to save thousands of dollars in interest payments. This is a smart financial choice.
- Build Emergency Fund
You’ve heard of doomsday preppers, right? You can prepare for that day when your employment will be terminated by building an emergency fund. You can accumulate some funds in a bank account that can last you for three to six months without recording any income. These funds can also be used to cater for emergency medical conditions, especially those that cannot be handled by your medical insurance policy. Saving for emergency or unforeseen circumstance is now a common financial strategy across the country.
- Invest in Yourself
It is not often mentioned, but if you have some extra cash, you can consider investing in yourself. Furthering your education by enrolling in a part-time class is one of the most strategic decisions you can ever make in your life. You can also read various books to increase your language skills, gain critical thinking, and enhance your decision making. You can also subscribe for gym classes or buy a fitness magazine and learn more about keeping yourself fit. You will have yourself later to thank.
- Consider Investment Vehicles
With some extra cash, you can generate more by considering various investment vehicles that are available for selection. One of the most common investment vehicles that you can consider is stocks from some of the best performing tech companies at New York Securities Exchange. Although investing in stocks is not risk-free, there is a high chance that you will create some few extra dollars in the form of dividends. Government bonds are risk-free investment vehicles and pay fixed interest rates.
Having extra cash in your bank account does not happen so often. However, when that chance comes, you have to make maximum use of it. You have hundreds of options that you can consider. Clearing your loans, paying for your vacation, enrolling for a course, and investing for future income are some of the aspects that you can consider. The idea is to make sure that you use the extra cash optimally without making mistakes that will haunt you later in life.