It is a great feeling to have surplus cash–but when you make poor choices, your finances could be affected. To avoid becoming too carried away with your surplus fund, you need to properly come up with a plan and make responsible choices.


To get the most benefit from your surplus, you must spend wisely and make smart investment decisions. How you decide to invest the surplus money would determine your business’ future success. use surplus money


You could decide to use the excess fund as your salary or bonus, but it is more worthwhile to invest it in things that’ll further boost the growth of your business. To help you manage your excess fund better, here are some practical tips you can try:

Transfer the Money to Your Savings Account

You can move the excess fund into your savings account. Given that money put into a savings account comes with minimal amount of interest, it may not be the best option. In the very least, it gives you peace of mind knowing that you have fund to rely on if you have to make purchases like purchasing new equipment or carrying out repairs. Again, you could easily access the fund without putting too much strain on your bank account or affecting your credit score.


The benefit of leaving the money in your savings account is to have easy access to it when you need it. You can also open a savings account that comes with higher interest which means you can grow your money faster. Alternatively, you can stick the money into a fixed account which regularly comes with a higher interest rate.

Figure Out Your Needs and Things of Value

You will be able to make better spending decisions if you make a list of things valuable to you. Make a list of things you value most, things that are useful to you and things you really need and cannot do without.


When you have decided on them, you could structure your budget accordingly.  Your value could be: to provide for your family, to succeed in your business or to help others. It can be anything at all–as longs as it adds great value to your life. Your list of values must also include things that bring joy and happiness into your life.


This little practice will help you to think clearly and spend wisely. Another thing you could do to ensure you make wise spending decisions is to identify places, individuals, and things that typically end up with you making poor spending decisions. Discovering these things will help you to avoid overspending or spending unnecessarily.

Evaluate Your Recurring Expenses

Write a list of your monthly bills and examine them for unnecessary spending choices you make and eliminate them from the list. Record all of your essential monthly expenditure: it can include rent, mortgage, insurance, debt payments, utilities, services, and so on. If you find anything on the list that is not necessary, eliminate it from the list.

You may think it is silly to do this, but if you take time to scrutinize your monthly list, you’ll discover a couple of things that you either do not need or things that are no longer valuable to you. To better your finances, eliminate them and save that money instead–in no time you’ll find a better and more profitable way to spend the money.

Plan Your Spending

If you typically end up spending an unnecessary amount of money while shopping–try making a list before you go out and try your best to follow it. Making this a habit will help you so you don’t forget anything while you’re out, and you’ll also end up only buying what’s on your list.


It is very critical you plan your budget beginning with your taxes, donations, and savings. Also, include your basic everyday needs like accommodations, food, insurance, utility bills, and transportation into your budget. An online budgeting tool may make it easier for you to engage in the budgeting process.

Write Down Every Purchase You Make

Another thing you could do to spend wisely is to track your day to day expenses. You can either download an app that helps you to track spending, or get a note pad and pen and write down the things you spend your money on. Writing down your expenses would create more awareness, make you more cautious, and improve your spending.

Create an Emergency Fund

If you find yourself in debt and are unable to get to a financially stable place, surplus money can be your saving grace. Medical debt is the leading causes of bankruptcies in the United States–your emergency fund can help you avoid this at all costs.


Your emergency fund can also help you out in other situations: such as job loss, car repairs, home repairs, unexpected traveling, and so on. Say if you’re in an accident on the job and are able to go on disability–this sounds great–but you still need money for all of your other household expenses. The emergency fund can help you get back on your feet until you can return to work.

Try Not to Use Credit Cards

If you find it difficult to control your spending with a credit card, try paying cash only instead. This method can help with controlling your spending, but you can also try this method even if you don’t have issues with your credit card. It can make you spend more wisely even if it means just a couple days or weeks. Spending cash could also make you more aware of how much you are spending each day and how you can cut back.

Spend Wisely

These tips are meant to help you better manage your surplus fund and help you grow your wealth. If you still find yourself struggling, consider consulting your issues with an advisor–who can help you manage your money better. This way, you’ll easily reach financial stability, and you won’t be struggling to get by in the future.


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