More often than not, there are usually bills to pay. However, unless you are really stretched for cashflow, we would not recommend using this large lump sum to pay your everyday bills. This influx of cashflow was unexpected, and you should really use it for a purpose that is not for your day to day living expenses. That is, you should be able to pay your bills with the income you are generating!

      Here are some handy tips, that may help you decide what to do with this money!

 The best way to spend this large lump sum is to pay off any debt that has high interest rates (as opposed to bills such as the electricity bills). Eg. Credit cards.

Park it in your mortgage offset account, if you have one, to reduce the interest on your home loan that is for your main residence (not your investment property)

If you do not have an emergency savings pool – now is the time to start one! You may be asset rich, but are you also cashflow rich? Can you get access to funds quickly in an emergency? Only you know the answer to this!

Use the funds to invest in something that will generate profit or cashflow for you – buy shares! Use that money to start that new business that you have always wanted!

Finally, and this is one of our favourites – spend it on something that you really need, or want. Reward yourself if you have worked hard all year. Buy that coat you have been eyeing. Or that pair of shoes that you walk pass every day. Indulge!!