When we saw that Gemma Collins had won £20,000 at the Cheltenham Festival races, our first thought wasn’t about designer bags or luxury holidays. It was: what would we actually do if £20k landed in our account today? 💸
If you woke up tomorrow with an extra £20k, would you rush out to spend it or use it as an opportunity to strengthen your financial foundations, giving your future self a little more security and freedom?
We’d follow the steps set out in the Financielle Playbook (available in the Financielle app) – The ultimate guide to getting your money $h*t together.
Build your emergency fund
An emergency fund is peace of mind. It’s a stash of money you set aside to cover unexpected expenses, helping you avoid relying on debt when life throws surprises your way. Think of it as your safety net. It’s there to keep you covered when things don’t go to plan.
Build your emergency funds stress free here
Pay off outstanding debts
If you have any outstanding consumer debts, now could be the time to pay them off and say goodbye to those monthly payments for good. You can use the snowball or avalanche method to get started. Find out more here.
Set up your sinking funds
Sinking funds are dedicated savings pots for expected expenses. Unlike your emergency fund (which is for unexpected costs like car repairs or medical bills), sinking funds are for planned expenses like holidays, car insurance, birthday gifts, house renovations etc.
Learn how to set yours up here.
Consider investing
If you have excess cash, investing could be a great way to make your money work harder. You just need to consider the right types of investments depending on your money goals.
Remember, it’s not that deep and you don’t need to know everything! Head to our investing lock-in series here to get started.
Just remember, investing comes with both risk and reward
Important Information
This article is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser.