Living frugally isn’t about being poor, as many might think. It’s about knowing what to do with the money you have. So when you have more money than you might usually do, you might be tempted to start spending it and treating yourself. A little treat here and there is nice, but that shouldn’t be where all or even most of it goes. If you want to be frugal, you should be more sensible about it.

To your debts

If you have outstanding debts, then is most definitely where your extra money should be going. We know that it’s not very exciting, but it is the option with the most long-term benefit. The longer you keep debts standing, the more interest you have to pay and the longer you have to keep dealing with them. You should formulate a strategy on how to attack debts with help from places like http://www.cnbc.com/. Starting with those with the highest interest. From there, figure out the highest priority targets and use your extra cash to eliminate them. It will get a worry off your mind in the long-term. Meaning you’ll have extra cash again in future.

In securities for you and your family

Protecting your wealth is as important as having it. There are a lot of situations in life where you are going to regret not keeping that extra money. For instance, you might want to put it in an emergency fund if you ever find yourself out of work. Or if you want to think really long-term, then you should consider life insurance. One thing that makes a lot of us worry is the burden we might have on our family with expenses after we’re gone. Deal with that worry now.

In building your wealth

If you have the right protections set aside and debt dealt with, then it’s time to start growing your money. The more you procrastinate, the more benefit you’re missing out on. A lot of people are intimidated by the idea of investing mainly because they don’t know how to do it. To that end, there are a lot of helpful advisors like http://www.carnegieinvest.com/. With the right people picking out opportunities for you, you don’t need to be a genius when it comes to the markets.

The community

It’s always worth considering giving a little more to those who need it. While you might not be rich yourself, there’s a real inequality of riches and opportunities in our communities that goes beyond that. Get donating to charities near you. Buy those resources or equipment that an organization might need. It is the season for giving, after all. You’ll feel a lot better knowing that your money is going to someone who needs it rather than getting some frivolous, short-term enjoyment for yourself.

Whether it’s for your family, yourself or your community, make sure any extra money you have is doing real good. Otherwise, it’s not really making you a little richer. It’s just something you hold onto temporarily.