6 Savvy Ways To Spend A Lump Sum Of Cash

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In a similar vein to another post on what to do with an inheritence, this post discusses what else you might do with a lump sum of cash. Many of us dream of winning the lottery, and could imagine spending all that cash on shoes, bags, jewellery and holidays, and well know that eventually it will run out. But what if you could maintain it and live off it forever? Depending on how much you gain, this could well be possible!

So grab a cuppa, and have a read. Enjoy!

Every so often, some of us are lucky enough to get an unexpected windfall of cash. This windfall could be a relatively small work bonus, or it could be something as huge as winning the lottery, but, regardless of the size, any extra cash you ever received should be planned carefully. This is because, if you don’t think about your spending, you will likely end up wasting this money, and could even spend more money than you really have to spend. If you want to make sure that you use your money wisely, then keep reading for six ways that you can spend your extra cash.

Pay Off Debts

Paying off your debts should always be your number one priority, especially if you’re having to pay high-interest rates, and will likely be paying off your debt for years to come. Even a small windfall could be used to pay off one of your credit cards, but a bigger sum of money could be used to pay off everything. Make a list of all of your debts, and prioritize them by amount and interest rate. Then start paying them off one by one, until you’re completely debt-free. This e-book might help too!

Emergency Fund

Life is unpredictable, and, unfortunately, with that unpredictability comes the risk of things going wrong. When these things go wrong, you could be left without any cash, or substantially less than usual, which will, of course, make it difficult for you to continue to live comfortably. For you to have some peace of mind, it’s important to have some cash available in case anything goes wrong. Then, if you lose your job or your house floods, for example, you will still be able to eat and pay for accommodation. It’s sensible to have at least a couple of months expenses saved.


As it’s often said, “knowledge is power”, so, if you ever had some extra cash come in, why wouldn’t you use it on education to wider your knowledge.

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Depending on your aspirations and the amount of money you receive, you could take a javascript course (this link is useful for American readers – do a google search to look for similar coding courses if you’re interested!), night classes, or even go back to college/university for a degree. This is essentially investing in yourself, and could seriously better your life and the lives of your loved ones, so it’s definitely worth taking into consideration.


There are so many different investment opportunities available out there for a large lump sum of money, so investment might be something that you want to think about. Of course, you should do a lot of thinking when it comes to this option, and consider the advantages and disadvantages before deciding anything. One of the biggest disadvantages is that all investment comes with risk, and you could end up losing all of your money if you rush and invest poorly.

However, if your investment pays off, you could make some decent gains, and keep the money flowing in (and potentially replace your income), which wouldn’t happen if it was spent on “stuff”. It’s always sensible to speak to a financial adviser if you’re unsure, but if you’re going it alone, do your research first, find mentors and test out the venture before throwing more money in.

Give To Others

When most people win the lottery, they obviously spend a lot of money on themselves and their immediate family, but a lot of winners also give a large chunk of money to charity, and also treat their loved ones with gifts, cars, houses, and so much more (as long as its done in a sustainable way!). There is no better feeling than knowing that you’ve improved the lives of others, so this is a great way to spend some of your extra cash. Just remember not to let people take advantage of your newfound wealth, and don’t forget to look after yourself first!

Make A Dream Happen

Almost everyone on the planet has had a conversation about what they would do with a large amount of money if they ever happened to receive one, but, unfortunately, these dreams very rarely become a reality.

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Luckily for you, you have the ability to do whatever you like and accomplish as many dreams as you can afford, whether they are starting a business, traveling the world, or just improving the lives of your family. Although, you should bear in mind that, while dreams are important, make sure you do it on a stable foundation. Pay off debt, set up an emergency fund and keep your investments growing. Your finances are then set up to support you all the way while you go out and do your thing.

It can be difficult to know what to spend your money on when it comes at you unexpectedly, but, hopefully, these tips will trigger some inspiration to go for it!

If you’ve read this and think – “yeah, I’d like to invest“, but then remember that you’re not sure how to, then why not drop me an email? I have a beginner’s guide to investing in stocks and shares course coming out very soon, and I’m letting keen beans know before anyone else, and will be offering “early adopters” a discount too, so its worth your while to add yourself to the list!

Take care, and until next time, much love!

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