How to deal with unexpected income

BIRMINGHAM, Ala. (WIAT) — It happens to everyone at some point: you reach into your wallet to grab some dollars and find nothing.

You then ask yourself:  where does all my money go? Finance expert Donna Freedman says: If you’re a grandparent you may be dishing out a dollar here or $5 there to your grandchild.

Coupons are meant to save money, but we often buy things we really don’t need just to save 35 cents.

Some people come into money they didn’t expect  and see it as a reason to splurge.

Freedman says, rather than spending the money we should put 90 percent toward bills or a long-term financial goal, and splurge only 10 percent of the unexpected income.

Copyright 2014 WIAT-CBS42

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