Personal debt is rising quickly in the face of increasing energy bills and other costs of living, with credit card balances, auto finance debt, and student loan debt all surging in 2022.1

Despite that, U.S. consumers believe that their financial situation will improve this year, with seven in 10 saying they’re also taking additional measures to manage their credit card and other debt.2

If you’re planning to reduce your debt, you may soon have some surplus cash on hand. There are a number of ways you might wish to spend or invest it for a better financial future:

  • Increase your savings: Simply placing surplus cash in a savings account could give you peace of mind that it’s there to use should you need it for any further rise in inflation or the cost of living.
  • Boost the kids’ college fund: The total cost of sending a kid to college will depend on many factors but could range anywhere between $37,000 and $100,000 per year3 So, putting some money aside early could help out later on, and help give your children, and you, a more secure future.
  • Grow the value of your home: Making renovations and modifications to your property can make it a far nicer place to live. But it could also increase the value of your home, with certain renovations boosting a property’s value significantly.4 So you might wish to consider investing in your existing property – particularly if you plan to downsize and recoup the profit later.
  • Boost your retirement savings: Increasing your retirement fund is another good use of surplus cash. Whether it’s increasing your pension contributions or increasing your retirement plan contribution, putting some more money aside now could help you achieve the retirement lifestyle you want.
  • Increase your life coverage: Boosting your life insurance coverage – or taking out a policy if you don’t currently have one – is another good use of surplus cash. It ensures your family would be in a good financial position should the worst happen.

Whichever route you take with any surplus money you have from reducing your debt, saving it or using it wisely could help put you in a better financial position – and give you great peace of mind.

If you would like the help of a financial professional, speak to a Local Professional here.

Go back to our newsroom to read more stories.

Kevin Maher
New York Life Insurance Company
(212) 576-6955

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