Plain and simple question: What would you do with $1,000?
This $1,000 is lying on the street, figuratively. It is totally found money. You found it, you picked it up and you put it in your pocket. No strings attached.
What you would do?
I think what you’d do with this $1,000 says a little bit about who you are and what your financial priorities are.
If you have a strong desire to spend it all, I understand. It is found money after all and life is for the living. It’s time to have some fun, right?
If you have a strong desire to save it all, again, I understand. RRSPs and TFSAs and the like are great retirement vehicles. Maybe you have a high-interest savings account that could use this money.
Maybe you want to pay down debt. Again, I’m with you here. I hate debt.
Spend or save or pay down debt? Maybe all three? Something else?
I’d probably take $250 and spend it, have some fun with that amount. I’d take the rest, the $750 and save it. Actually, the $750 would be invested. I’d continue my mortgage prepayment plan as is and invest the $750 into my TFSA. Yes, that is exactly what I’d do. What would I buy in my TFSA? I’d probably buy a Canadian dividend-paying stock. Until I figured out which one, the $750 would sit there in cash. Yes, that would be my plan for sure. Come to think of it, I’d probably buy some Canadian financial stock. They seem to pay steady dividends and are fairly stable, as far as stocks go.
Good, I’m glad I’ve figured that out. If I stumbled upon $1,000 of “found money”, I’d save most of it and spend a bit of it. I like that plan – let’s do it.
Wait, where is the $1,000 coming from again?
What would you do with your $1,000 windfall? What does that say about you and your financial priorities?