Advice I Was Given in the Past

Many years ago at work we were being given a retroactive pay increase and getting a nice amount of money in a single cheque.

I was saying to a colleague that I might use that money to buy a new colour television (this was back when black and white TVs were still common).

She didn't think that was necessarily the best use to make of the windfall.  Whenever she got unexpected money she put it into savings.  If she wanted something like a colour TV she started setting aside a bit of money each payday until she had what she needed to buy it for cash.

Although I grew up with parents who always waited until they could pay cash for discretionary items (and had always stressed saving part of income) this sensible idea of how to use unexpected money was new to me.

I did put that retroactive cheque into savings and it's a policy that I have followed ever since and it has served me well.