Jillian and Adam discuss the pros and cons of supercharging your allocation plan or mixing it up with something different when receiving a lump sum of money.
What to do with the stimulus money has become a hot topic for those taking the One Hour Millionaire course. Should it go to the allocation plan to supercharge things? Should it be used for a dream goal or fun money?
Adam and Jillian sit down to talk through the pros and cons of receiving a significant sum of money from an inheritance or stimulus funds. For those struggling to make ends meet, the answer is obvious: pay your rent, buy needed groceries, and do the things necessary to survive.
For those in the early phase of your journey to financial independence, allocating that money to high-interest debts, emergency funds, or your first ten thousand in retirement investments would be a smart move. It can help you gain momentum and get to that next phase more quickly.
For those who are a little further in the journey with a strong allocation plan and good pacing towards your goals, it might make sense to mix it up a little. Perhaps this is the stage of life where travel should be a priority, or you feel an urgency to make memories with your children before they leave the nest. Perhaps that dream goal is suddenly attainable, or you want to catch up on all that you deferred in the last year because of the pandemic.
“You are happy with where you are at… You’re loving what you are doing, but you’ve been waiting and waiting…It might be that time.”
Whether the money would be better spent paying off your car, fulfilling your child’s dream of attending gymnastics class, paying for childcare so you can pursue your passions, or going on that dream trip, it will take an honest conversation with your partner. Learning to be intentional with the unexpected windfall will take you one step closer to your long-term financial goals.