Subscribe: Posts | Comments


Warning: in_array() [function.in-array]: Wrong datatype for second argument in /home2/erlend5/public_html/webmoneymaker.net/wp-content/plugins/facebook-button-plugin/facebook-button-plugin.php on line 244

Warning: in_array() [function.in-array]: Wrong datatype for second argument in /home2/erlend5/public_html/webmoneymaker.net/wp-content/plugins/facebook-button-plugin/facebook-button-plugin.php on line 246

Something that most people who write about personal finance tend to emphasize is the necessity of having a financial reserve, so that one is able to cover unforeseen costs. Something, however, is less emphasized is the importance of having a plan for how to deal with unexpected revenue.

Unexpected income may occur in different ways, such as:

Inheritance
Prizes in gambling
Good wage settlement

Overtime Pay
Profit on sale of property and other possessions.

If you do not have a plan for how to deal with this type of income, one would like to waste them away. For some reason, often unexpected revenues experienced a lower value than the income you have worked for, and this affects what the money is getting used to. Most people have heard about the lottery millionaires that wastes much of the winnings.

Here are a few suggestions to the plan for how to deal with unanticipated revenues:

1. One can decide that all unanticipated revenue should be placed in the savings account in mutual funds or other type of savings.

2. One may decide that 80% (or some other percentage) of unexpected Income to be used for saving, while the rest can be used to what you want.

Do not hesitate to make a plan for such income. One of the characteristics of these revenues is that they are surprising, and it applies to both the amount of the sum and when they arrive.

Post comment