8 smart ways to spend a hefty windfall
Larry Winget, author of "The Idiot Factor: The 10 Ways We Sabotage Our Life, Money, and Business," says "Don't buy anything."
"It's an opportunity, a real opportunity to fix everything you haven't been doing right," he says.
First, pay off your high-interest rate credit card. Then, stash your windfall away. Consumers should create a savings equal to at least three months' worth of household expenses. Put the rest away for retirement. "That would be the top three things that I would say to do," Winget says.
"But whatever you do, don't buy something that's going to immediately depreciate when you write the check: cars, clothes, food, vacation," he says.