Doesn’t it always seem to be the case that if you just had a little more money, your finances would be absolutely fine? You’re not asking for a lot: in fact if you won the lottery you probably wouldn’t know what to do with all that money! But just a little bit extra would really help.
The weird thing is that even if you do start getting extra money, for example a new job, a pay rise or a bonus, there still doesn’t seem to be enough! That extra money just seems to vanish into thin air, leaving you still needing more.
So here’s the question. If someone gave you £500 today, no strings attached, what would you want to do with it? Spending the money on something that would gain you visible results rather than just seeing it evaporate.
In this article we take a look at:
Some time ago, YouGov did some research into how people would use an extra £500. The three most frequently mentioned uses of the £500 were:
We’re adding to this list two more options:
Let’s take a quick look at the advantages of each of these:
Paying off debt is always a good way to use money. It may not seem to be the most exciting thing to do, but clearing down some debt releases you from making those debt repayments, meaning that you have more money available each month to use for other things.
Having savings helps you to feel more financially secure. Whether you are saving for a rainy day – such as an unexpected bill or expense – or putting the money away longer term, every little helps. It could be a much better use of your £500 than frittering it away.
We’ve just mentioned the temptation to fritter the money away. But a positive alternative to this is to put the money towards something special, such as a holiday or other kind of treat. This could be the ideal combination of using the money wisely but also being able to enjoy yourself.
Improving your home is always money well spent. You probably already have a list of things that need doing, and getting some of them sorted could make your life that little bit easier. And if you own your home, every little improvement you make could potentially help it to maintain its value, which is important if you decide to sell at some future point.
Another useful way to channel any extra money is to stock up with supplies. We have all experienced times when money is a bit tight and there is very little to fall back on. So if you do have a bit of extra money, it’s a great idea to stock up on things either that you regularly use in your home or that need replacing and you haven’t had the cash to do it.
For example:
Or you could even do next year’s Christmas shopping!
As we have seen, there are many different ways you could choose to use an extra £500 if it came your way. Which is all well and good, but where exactly is the £500 supposed to come from? Yes it would be wonderful if you get an unexpected bonus, gift or win. But there are other things you can do to scrape together a bit of extra money if you need it.
In our recent article Will you have enough money for Christmas 2021?, we explored five ways to increase your income before Christmas. All of these measures could be applied all year round, and if you use a couple of them together you could easily raise that extra £500 you are looking for.
Briefly, the five ways are:
The idea behind this is to make a few sacrifices just for one month. You will be surprised how much money you can save by cutting out as much non-essential spending as possible.
Either try to pick up overtime or extra shifts in your current job, or take on an additional temporary job as well.
If you have a skill or talent, offer it out there to make a bit of extra cash in your spare time.
If you don’t want it or need it, sell it. Use either online sites or local selling opportunities to make a bit of cash from your clutter.
A quick loan could be another option if you need money fast for a specific purpose. Loans 2 Go offer quick loans from £250-£2000. A £500 loan could see you through any kind of family emergency, home or car repairs, or unexpected bill.,
Read more about all the above in our article Will you have enough money for Christmas 2021?
We hope that this article has given you some useful insight as to how to use any unexpected money wisely, and also some practical ways in which you can raise that extra money yourself if you need to do so.
Check back here soon for more lifestyle and financial tips from Loans 2 Go.
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