Whether it be a Bonus Bond win, inheritance or tax refund, most people receive unexpected payouts from time to time. But while a shopping spree may be good for the economy, it might not be the best thing for your family budget. If you receive a cash windfall, make a solid money plan.

Pay off your credit card

Getting rid of credit card debt is a priority. With some cards still charging up to 20 per cent interest, it's the best way to spend your cash. Once you've paid it off, set a monthly budget, stick to it, and use your credit card only for emergencies.

Look around the house

Use your windfall to make purchases you've been putting off because you haven't had the money. That means necessary items, such as refrigerators, washing machines, computers, or basic clothes - not the latest plasma television. It's a great chance to fulfil a need without putting it on credit. Plus, you'll be pumping money into the economy and giving a much-needed boost to retailers.

Save for emergencies

Having extra dollars doesn't mean you have to spend them. If you don't have any credit card debt and there's nothing pressing you need to buy, save it for a rainy day. It'll be a godsend if you or your partner are out of work at some stage this year. Or the money may come in handy when it's time to pay major expenses, such as car registration or council rates.

Tackle your home loan

If your mortgage has an offset account, keep your savings in there. While your money's in the account, it'll reduce the principle amount and, as a result, the interest you pay. Your other option is to use the money to pay off some of your home loan.

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