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3 Interesting Ways to Use Your Surplus Funds
3 Interesting Ways to Use Your Surplus Funds

3 Interesting Ways to Use Your Surplus Funds

The moment that extra bit of cash lands in the account, it’s tempting to splurge on unnecessary items and go on endless shopping sprees. The only problem is that the shopping sprees hardly add any value that provides for your future.

Savings and investments, on the other hand, do. When 57 million Americans don’t have the benefit of a safety net in the form of emergency savings, it’s time to rethink that surplus and put it to good use. These are some of the ways to get off the ground.

Saving Is the Key to Financial Freedom

There is no point in heading out to the investment front without having the basics in place first. This is where emergency savings come in. According to financial gurus such as Suze Orman and Dave Ramsay, setting up an automatic savings account is one of the keys to financial freedom.

These accounts provide relief during those tough times and the monthly deposits don’t even need to be very high. The accumulative effect of regular deposits plus interest tends to grow a paltry sum into a good financial platform over a period of time.

Those who happen to have surplus funds can boost their emergency and regular savings substantially which leaves them with more funds to get out of debt.

Invest in Things That Appreciate in Value

The only time it makes sense to buy a new car is when safety or sustainability is at risk. The “shiny new thing” epidemic ensures that consumers remain at the edge of their finances and experience financial stress for no reason.

Instead of investing in items that depreciate in value, it’s far more frugal to opt for more lucrative and stable items. Those who buy gold bullion not only have an actual product in their hands but also have a direct investment in precious metals.

These items tend to appreciate in value and there is a strong collector’s market for investors to partake in. This ensures that a surplus now turns into a wealth creation tool for the future.

Release That Yoke of Debt

This option does not always work for everyone and the reason is simple: once a debt is cleared off there is always that temptation to take out more debt.

Consumers who are able to apply discipline to their finances can relieve the burden of debt with their surplus funds. They should, however, check in with the financial institution whether there are early settlement penalties.

It’s also important not to take on additional financial responsibilities when in surplus as it could cause further financial problems when the surplus runs out.

It’s important to realize that large payments don’t happen all the time and consumers should be aware that one moment of surplus might not be a continuing trend.

A little splurge or treat here and there won’t do any harm, as long as there is a solid plan for the remainder of the funds. Surplus funds don’t always need to remain just a flash in the pan.

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About StephanJ

Stephan J is the founder of Monetize.info and is making a living exclusively online since 2004. He tried and managed to make good profits on everything from Forex trading, options, website flipping, adsense, affiliate websites.His passions are cycling, fitness and he is spending a small fortune on watches and fine cigars

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