When Do We Get Unexpected Cash?
When we start to talk about unexpected cash , bonuses, etc it really encapsulates lots of different possibilities, but they can be summed up with a few general categories
- Tax Refunds
- Scheduled year-end or quarterly bonuses
- Inheritance (Money, Property, etc)
- Lottery winnings, sweepstakes, etc
As we go through life the majority of people will experience the first two categories pretty regularly, they may or may not experience the third, and we’ll just assume they will never experience the last one (but hey, it could happen!). With the exception of additional tax/legal headaches concerning inheritances, all of these events basically involve a person obtaining a relatively large sum of money all at once. They are also spread far enough apart and have enough uncertainty that it can make it hard to want to budget these sums of money and potentially difficult to do so as well. The sad truth is that the majority of people will squander these financial windfalls because of basic human nature and conditioning.
I’m going to try and protect you from yourself by talking about what goes on when we receive all of this cash and what we can do to be smarter family financiers!