Posted by Tim Stobbs on October 1, 2007
Friday was a very good day for me. Why? I got money I wasn’t expecting from my work. I forgot we have a profit sharing plan, so it was a nice surprise when I got an email about a bonus I’m getting shortly. It’s not huge but around 1.5% of my salary for the year.
So what am I’m going to spend my windfall on? To be honest most of the money will go to our saving account to be used during my wife’s up coming maternity leave. We are going to spend around 15% of it on a new set of shelves for the family room.
We tend to apply an 80/20 split to our unexpected windfalls. 80% of the amount will go to accelerating our current plans whether it be saving for retirement or paying off the mortgage faster. The remaining 20% will typically be spent on something fun. That way I don’t feel deprived after winning something and I’m still mostly responsible with it.
So how do you handle windfalls? Do you blow it or save it? I would love to hear how other people handle it.