5 Things You Can Do With Money - Rather & Kittrell (2024)

FAQs

5 Things You Can Do With Money - Rather & Kittrell? ›

The basic truth is that we can do five things with our money: (1) save it; (2) spend it; (3) give it away; (4) pay taxes; and (5) pay down debt.

The basic truth is that we can do five things with our money: (1) save it; (2) spend it; (3) give it away; (4) pay taxes; and (5) pay down debt.

Key Points. Pay off high-interest debt: Save on interest, free up monthly income. Build emergency fund: Cover 3-6 months living expenses, protect investments. Diversify investments: Explore retirement, mutual funds, stocks, real estate, bonds, and cryptocurrencies.

Paying down debt, investing the money or growing an emergency fund are all solid options that can bring you closer to your financial goals. Even if you opt to do nothing with it right away, there are savings alternatives to ensure that it doesn't get mismanaged in the interim.

1. Pay off high-interest debt with extra cash. It may not be the most exciting option, but the smartest thing you can do with a windfall is to pay off or reduce any high-interest debt you're carrying.

How can I spend money without going broke? ›

Start paying off the debt with the highest interest rates and work your way down to the debt with the lower rates. If you cannot pay all your high-interest debt with your windfall, pay as much as possible and focus your attention on other high-interest debt.

I would use the money for travel. Traveling, getting to know new places, people, customs, lifestyles enrich us. I've traveled the world but I'm sorry I didn't travel even more. And with so much money, if I had it for ten lives, I could help the people I meet along the way, the people who really need help.

That said, the typical age of financial independence should be between 20-23 years old, according to a Bankrate survey. Break the numbers down by cost category, and differences of opinion can be pretty wide.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

Pay off debt

One of the best things you can do for your finances is to pay off all of your debt. To get started, focus on your most expensive debt—the credit cards and loans that charge you the highest interest. Once you have paid off all of these debts, focus on paying off your mortgage.

We recommend the 50/30/20 system, which splits your income across three major categories: 50% goes to necessities, 30% to wants and 20% to savings and debt repayment.

1. Pay off high-interest debt with extra cash. It may not be the most exciting option, but the smartest thing you can do with a windfall is to pay off or reduce any high-interest debt you're carrying.