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What to Do When You Get Extra Money

2 Frugal Dudes March 26, 2020 160 1

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    What to Do When You Get Extra Money
    2 Frugal Dudes

Episode 165: We’re talking about investing, saving, and optimizing large sums of money. We’ll also touch on protecting your investments during the market slump as a result of Coronavirus.

We often talk about what you should do when you get a large lump sum of money, and how you can optimize that experience.

Maximize Your Investments

If possible, use your annual bonus or a large influx of money to get a tax advantage. Max out your 401K or HSA, to save yourself from the tax deduction on your income.

That being said, investing is a scary experience right now due to the market. If you get an influx of money, you might want to keep it on hand. Take a look at your portfolio as a whole and don’t panic— things will turn around.

Do NOT sell your stock at a loss. Now is the time to buy.

Building Your Emergency Fund

These strange days are a great time to review your emergency fund. If possible, set aside some money into an accessible account in the event that a situation arises. The Covid-19 situation has been a prime example of why you should strive to build an emergency fund.

Pay Down Some Debts

If you’re working on becoming debt-free, putting a lump sum toward your debts is a fantastic way to get ahead of your payments.

During these uncertain times, budgeting is more important than ever. Pick up a copy of our 2 Frugal Dudes Personal Finance Journal to start tracking today.

Grab your copy on Amazon.

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Disclaimer: Kevin and Sean are not professional financial advisors. Do not take any advice they give without first speaking with a professional and performing your own due diligence. This post may include affiliate links.

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