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Smart Money Moves: Making the Most of Your Extra Cash
As the saying goes, “money doesn’t grow on trees.” So, when you happen to find yourself with some extra funds, it’s important to make the most of them.
Whatever the source of your unexpected windfall—a bonus from work, a tax refund, an inheritance, or just a bit of budget surplus—it can be exciting, and splurging can be tempting.
While nothing is wrong with treating yourself, it pays to pause and consider ways to leverage your extra cash to improve your financial goals.
Prioritize Your Financial Goals
Take some time to think about your own financial goals and rank them in order of importance. Once you have a good understanding of your goals, explore ways to allocate those extra funds, such as:
- Pay off debt and improve your credit score.
- Save for emergencies and unexpected expenses.
- Invest in your future and reach your financial goals.
- Create a sense of financial security and stability.
Pay off high-interest debt
Although this may not be the most exciting option, if you carry any high-interest debt, such as credit card debt or a personal loan, it’s important to prioritize paying it off. Paying down these types of debts can save you money in the long run since they can quickly accumulate and become a financial burden.
Start by paying off the debt with the highest interest rate first, saving you the most money in interest payments. If you have multiple high-interest debts, consider consolidating them into one lower-interest loan to make it easier to manage and pay off.
Build an emergency fund
Having an emergency fund is crucial for financial stability. Without relying on credit cards or loans, it can help cover unexpected expenses, such as car repairs or medical bills.
Experts recommend saving at least three to six months of living expenses in an emergency fund. If you don’t have one, use your extra funds to build one. Consider opening a high-yield savings account to earn interest on your emergency fund.
Invest in a Retirement Account
It’s never too early to start saving for retirement. If your employer offers a 401(k) or similar retirement plan, take advantage of it and contribute as much as possible. If your employer doesn’t offer a retirement plan, consider opening an individual retirement account (IRA).
Retirement accounts allow you to save for the future while providing tax benefits. Plus, the earlier you start saving, the more time your money has to grow.
Invest in yourself
Investing in yourself can also be a smart way to allocate extra funds. This can include furthering your education, attending conferences or workshops, or even starting your own business. Think about your long-term career goals and how investing in yourself can help you achieve them. This can lead to higher earning potential and financial stability in the future.
Splurge a little
There are several financially prudent ways to spend extra cash, but it is okay to spend some of it on something fun, too. Just take the time to consider your financial needs and goals and ensure your purchases align with them.
Putting the money into a savings account while deciding how to spend is a smart strategy. You may treat yourself with a small part of it, but use the rest to pay down debt, boost your investments, or keep saving.
Final thoughts
Getting the most out of your extra funds is key to financial stability and growth. By paying off debt, building an emergency fund, investing in retirement, and investing in yourself, you can make the most of your money and set yourself up for financial success.
Remember to consider your financial goals, risk tolerance, time horizon, and personal values when deciding where to allocate your money. And don’t be afraid to seek the advice of a financial advisor to help you make the best decisions for your financial future.
Whether it’s an unexpected windfall or not, being thoughtful with money is always the best way to achieve your financial goals.
Expect more sophisticated cyberattacks in 2024
The cyberattack landscape predictions for this coming year are coming in. This time, cybercriminals are expected to up the ante making attacks like ransomware more sophisticated and effective—with AI making all attacks real wild cards.
Organizations are preparing for this year’s crop of escalated cyberattacks, and new regulations will also present a challenge for their systems. But criminals won’t stop their attacks, so keeping on top of the risks is your best bet.
CIRCIA Upfront
There’s a new law affecting all organizations who are victims of cybercrime in the U.S. Due to take effect soon is a law known as CIRCIA, or the Cyber Incident Reporting for Critical Infrastructure Act of 2022. Through required reporting, CIRCIA promotes transparency and accountability for businesses when cybercrimes occur. It also allows CISA (Cybersecurity and Infrastructure Security Agency) to identify attack trends and share that information with those benefiting from it. CISA can also use CIRCIA information to quickly help victims of attacks.
Generative AI, or GenAI (think ChatGPT)
AI continues to grow. In particular, social engineering attacks benefit from its use. With a few key words, cybercriminals can plot pointed phishing attacks on a massive scale without displaying the usual red flags of phishing like poor spelling and grammar. Deepfakes and voice cloning are other GenAI areas ripe for the picking. Overall, GenAI will make phishing and other social engineering attacks more convincing.
Ransomware
This is considered the scourge of healthcare, education, businesses, and state and city services (to name a few). Ransomware is all about cybercriminals getting ransom payments for critical data they’ve encrypted. Adding to this attack is double extortion against ransomware victims using their hijacked sensitive data. According to Verizon, ransomware was involved in 24% of all data breaches last year.
Hacking as a business is booming
With Malware as a Service (MaaS) available to rent or buy on the dark web, hackers have all they need for their cyberattack goals. Attacks by aspiring hackers and their rented malware of choice have it easy with tutorials and step-by-step instructions. Also, “hired guns” are available to do your hacking for you. It’s believed more threat groups will offer hacking as a service for the right price.
Cyber-education and Zero Trust
These are two practices businesses need more of this year. With 96% of malware delivered via email, employees of every level from bottom to top benefit from recurring cybersecurity awareness training. Zero trust for organizations means no one is trusted by default. Whether inside or outside an organization’s network, as with employees and vendors, verification is required every step of the way with system interaction.
What you can do
Always have your guard up for various attacks. Consider a zero-trust policy for yourself when it comes to providing sensitive information to anyone. Make sure the person on the other end of the phone is really who they claim to be and hold that information close until you’re sure. Pay attention to email and text messages, as well as visual voice messages. If you cannot be sure, double check. Keep all of your systems updated and install anti-virus/anti-malware software on every one of them.
Want to know more? Read additional Mid Oregon blog articles about online security and fraud protection.
As a reminder, Mid Oregon will never initiate a call asking for personal or account information via phone, text, or email.
Content based on an article by Stickley on Security
Celebrate Valentines Day without the financial stress
Valentine’s Day is a special occasion that many couples look forward to. However, it can also be a stressful time for those on a tight budget. Fortunately, there are many ways to celebrate this day without the financial headache. With a little creativity and thoughtfulness, you can plan a budget-friendly Valentine’s Day celebration that will be just as romantic and memorable as an expensive one.
Homecooked dinner
One idea to consider is cooking a romantic dinner at home. Instead of going out to an expensive restaurant, prepare a delicious meal together in the comfort of your own home. You can even set the mood by lighting candles or a fire, playing their favorite music, and dressing up for the occasion. Not only will you save money, but you’ll also have fun cooking together and enjoying each other’s company.
Romantic hike or walk
If cooking isn’t your thing, consider taking advantage of nature and going for a romantic hike or walk. Not only will you get some exercise, but you’ll also enjoy the fresh air while spending quality time with your partner. Central Oregon weather can be unpredictable, but that’s why hats and gloves were invented so don’t hesitate to venture outside.
Movie night
Another budget-friendly idea is to plan a romantic movie night at home. You can rent a favorite movie or choose one from a streaming service. This is a great way to snuggle up and spend quality time together. Pop some popcorn, grab some blankets, and enjoy a night of movie magic. You can even make it a themed night by choosing movies that reflect your relationship or your favorite memories.
Make your own gift
Lastly, you can consider making DIY gifts for your loved one. Instead of buying expensive gifts, consider making something special that comes from the heart. Whether it’s a handmade card, a personalized photo album, or a heartfelt love letter, the effort and thoughtfulness behind a DIY gift will be appreciated.
Remember, Valentine’s Day is not about how much you spend, but about sharing quality time with your significant other and showing them how much you care. So go ahead and start planning your budget-friendly Valentine’s Day celebration today!