A bonus at work, an inheritance, a lottery win — a financial windfall can come in many different forms but one thing they all have in common is that they can have a huge impact on the life of the recipient.
Transparency is important at Our Bill Pickle. That’s why I used my first post to talk about the financial privileges that have allowed us to get ahead on the debt-free journey.
But privilege isn’t the only thing that has helped us.
Our Financial Windfalls
Over the last number of years, we have been on the receiving end of two significant financial windfalls.
Financial Windfall 1: Full-tuition scholarship (approximate value: $25,000)
It would be disingenuous to suggest not being on the hook for the cost of my university degree is not a big deal.
That’s not to say I did not have debt in university. My scholarship, earned through academic merit, covered tuition for four years. That left me responsible for the cost of books, student fees and housing.
I lived in residence my first year and used an $8K student line of credit to pay for it. Through a combination of working part-time while in school, returning home to work full-time in the summer, and an unexpected (but well paying) assignment in my final year, I paid off the entire loan the day before I graduated. This, combined with the consistent hard work required to maintain my GPA and keep my scholarship, allowed me to avoid that $25,000 cost. I graduated debt-free as a result.
It sounds so cheesy to say but it’s true: this scholarship was a game-changer for me. The experience I gained while completing my degree opened somany doors for me post-graduation. I walked into an internship, which turned into a full-time job 18 months later. I stayed at that job for the better part of six years before moving on to a new gig that has allowed me to continue using the skills I have while also developing new ones – andpaying a comfortable wage.
I would not be where I am today had I not received that scholarship.
Financial Windfall 2: I won a car (approximate value: $9,000.00)
This is honestly one of the craziest things that has ever happened to me.
It was completely by chance. I entered because it was quick and easy: all I had to do was fill out a survey and share it on Facebook. There were other ways to get more ballots, but I stuck with the one. I figured it was a long-shot.
When I found out I made the short-list of candidates to come to the dealership for the event to pick the winner, I almost didn’t go.
At the event, each finalist was assigned a number that corresponded with a numbered ball inside a raffle box. The balls were drawn out one at a time until only eight remained. The eight remaining people chose a key from the table. Whoever picked the key that started the car won it.
I went second — and somehow managed to pick right key.
However, as a result of a long series of car problems in the spring, we had just purchased a new (used) vehicle. In addition to that, we were also in the process of saving for something very important: our wedding. It didn’t take us long to decide the best course of action would be to take a cash payout instead.
In the end, we received about $9K. That money helped pay off the remaining debt from my braces and the rest went straight into our wedding fund. The combination of this windfall, plus help from our amazing friends and family, helped us plan a debt-free wedding (curious about how we did that? Check out this post).
What these windfalls taught us
A financial windfall will impact your life. Whether that impact is positive or negative will depend on how you go about stewarding the opportunity.
It would have been easy (and acceptable) for me to put off paying my student credit line until after I graduated and I am certain I could have found lots of different ways to spend the $9K cheque from the dealership. However, in both cases, I decided to look at the bigger picture.
Of course, what worked for us might not work for you and that’s OK. There is one piece of advice that I think is applicable in all cases:
Take your time.
Don’t rush into decisions about how to put your random riches to work. Consider your priorities and weigh your options in light of the big picture – your big picture – and let that guide your decision making.
Final Thoughts
Our two windfalls have helped us a lot. Thanks to these random riches, we started off our debt-free journey with a lighter load.
However, the reduced level of debt is only one way our windfalls have helped us. More significantly, these windfalls helped us develop a better understanding of how to manage our money effectively.
And I am grateful for that.
Have you ever come into random riches? How did this help you on your financial journey?
