Maybe you ran into some financial bumps in 2013. You might be dealing with debt, haven’t set up an emergency fund, or still need to start a retirement account besides the one your employer offers. Or perhaps you’re worried about starting a college savings account for your child as they get older.
If these sound familiar, you’re not alone. Many Americans are in the same boat.
But finding a solution might be easier than you think. It’s all about allocating your extra funds to specific tasks.
### Finding Extra Money
Don’t think you have extra cash? You might be surprised. You probably have more than you realize; it’s just not labeled as “extra.”
Your tax refund, any rebates or savings from coupons, and earnings from a side gig all count as extra money. Instead of letting these amounts get absorbed into your regular budget or spent on impulse buys, add them up. They can turn into a considerable sum.
### The Power of Assigning Tasks to Extra Money
Consider what Julie from The Family CEO did. She and her family found $7,113.37 from July to September 2013. They used part of this for their emergency fund and the rest for their daughter’s college expenses, managing to cover her entire education debt-free.
Even if you don’t find as much as Julie did, you likely have more extra money than you think.
Similarly, Erika from Newlyweds on a Budget earned over $20,000 from her side job. She used it to pay off debts and fund vacations, including a honeymoon in Costa Rica and trips to several U.S. cities. By assigning tasks to her money, Erika balanced paying off debt with enjoying life.
### Getting Started
To start, identify all your sources of extra money and decide how it can be used to meet specific financial goals. It’s a practical step that can bring significant long-term benefits.