Frugal Friends Podcast: "Got Extra Cash? Here's What to Do With It"

Hosts: Jen Smith & Jill Sirianni
Date: April 10, 2026
Episode Theme: Practical, step-by-step advice for making the most of extra money—whether it’s a tax refund, a bonus, or recurring monthly savings—explored with candid, lively discussions and plenty of laughs.

Episode Overview

Jen and Jill dedicate this episode to helping listeners decide what to do when they come into extra money. With tax season in full swing and larger-than-average refunds going out, the duo lays out a practical five-step framework for channeling windfalls—big or small—in ways that build financial stability, alleviate guilt, and maximize long-term benefits. The conversation is loaded with relatable anecdotes, actionable insights, and the hosts’ signature blend of transparency and humor.

Key Discussion Points & Insights

1. Understanding Why You Have Extra Cash (04:26)

• Be Mindful, Not Mindless:
  “Without having a framework, something tangible we can come back to, we could end up mindlessly spending it and not even really knowing where it went… maybe even feeling guilty.” — Jill (04:26)
• Sources Matter:
  • Tax Refund: Not “free” money; it’s your overpaid taxes being returned. “If it's a huge amount… we might need to readjust our withholdings. We don’t want to be having a refund of more than $1500.” — Jen (05:13)
  • Bonus, Sale, Lottery: Money earned through effort, sales, or luck; approach each with awareness.
  • Life Insurance: “A loved one wanted you to be taken care of financially, not blowing your money everywhere.” — Jen (06:32)
• Golden Ratio (07:23):
  General rule: Spend 10–20%, put 80–90% toward a goal.
• Key Question (07:57):
  “What problem in my life can this money solve?”

2. Step-by-Step: The 5-Step Windfall Framework

Step 1: Know Why You Have the Extra Cash

• See above.

Step 2: Build or Top Off Your Emergency Fund (08:27)

• Essentials Over Excitement:
  “Emergency funds prevent future debt. They are not sexy, but they are essential.” — Jen (08:27)
• Guidelines:
  • 3–6 months of bare-bones expenses in a high-yield savings account.
  • Single income household: Aim for 6 months.
    Dual income: 3 months—but if both work for the same company, lean towards 6.
• Why Not Optimize?:
  Safety > Optimization. “Anybody worth their salt is going to say the same thing.” — Jen (09:07)
• Annual Check:
  Review your emergency fund yearly to keep pace with changing expenses and job security.

Step 3: Knock Out High Interest Debt (14:59)

• Target Debts Over 7–8% (16:44):
  “If you have debt above 7% you would essentially be losing money… You need to get that high interest debt gone before we talk about investing.” — Jill (16:44)
• Order of Attack:
  • If you have lots of high-interest debt (e.g., 20%), tackle it first, maybe even before fully funding your emergency fund.
  • For small, manageable amounts, building the emergency fund can coincide.
• Flexibility:
  Steps 2 and 3 can flip based on the amount and urgency.

Step 4: Fix One Problem in Your Life (19:28)

• Intentional Spending > Mindless Splurges:
  “This is the spending one… but we don’t want you to spend it on an Amazon shopping spree … Don’t be weird about it.” — Jen (19:33)
• Guiding Question (20:00):
  “What is one thing I can do now or purchase now to make something else easier or unnecessary in the future?” — Jill (20:00)
• Examples:
  • Replace a broken dishwasher (saves time/curbs dining out)
  • Fix your car or buy a good mattress
  • Upgrade a laptop to improve workflow
• Self-awareness > Willpower:
  “You do not fail because you don’t have enough willpower. You succeed because you set up your environment to make it more difficult to fail.” — Jen (25:02)

Step 5: Invest the Remainder (25:47, 31:19)

• “If you get this far, good for you! Most of us only make it to step two, honestly.” — Jill (25:36)
• Investment Tips:
  • 401(k), IRA, Roth IRA: Max them out, especially if you have a windfall.
  • If the windfall’s early, contribute to last year’s IRA before April 15th.
  • Monthly vs. Lump Sum: Lump sum early is better for compounding.
  • 529 Plan: For children—can now be partially transferred to a Roth IRA after 15 years (as of 2024).
• Key Principle:
  “Time in the market is more beneficial than timing the market.” — Jen (31:19)

Notable Quotes & Memorable Moments

• “Emergency funds prevent future debt. They are not sexy, but they are essential.” — Jen (08:27)
• “You do not fail because you don’t have enough willpower. You succeed because you set up your environment to make it more difficult to fail.” — Jen (25:02)
• “Don’t be weird about it. Those are things you should be budgeting for.” — Jen on using windfalls for splurges (19:33)
• “Fix one problem in your life... That’s your step four.” — Jill (29:48)
• “If you want to know how to save money on your groceries when you’re 60, invest that money now.” — Jen (31:19)

Timestamps for Important Segments

• 01:24 – Tax Refunds & Setting Up The Episode’s Framework
• 04:23 – Why Knowing Your Windfall Matters
• 08:27 – Step 2: Emergency Fund Guidance
• 14:59 – Step 3: High Interest Debt
• 19:28 – Step 4: Fix One Problem in Your Life
• 25:47 – Step 5: Investing Extra Cash
• 32:54 – "Bill of the Week" Listener Story
• 40:14 – Lightning Round: Hosts’ Best Windfall Decisions

Lightning Round: Hosts’ Best Decisions With Unexpected Money (40:14)

Jill:

• Used unexpected cash (gift from in-laws) primarily for debt pay-down:
  “Never really do much fun things with it... I just always have big problems in my life and it’s just not that fun.” — Jill (40:40)
• Some used for a camera (no regrets), but most for erasing debt and gaining relief.

Jen:

• Used her “first little bonus” (book advance) for LASIK eye surgery—solving a persistent problem and improving her quality of life, plus another windfall was directed towards paying off low-interest debt.

Listener “Bill of the Week” Highlight (32:54)

• Allison’s Success: Saved money by switching from Spectrum to T-Mobile home internet—faster speeds, $20/month savings, guaranteed rate for 10 years: “My current speed with Spectrum was 400 megabytes... and I’m going to be getting two gigs for $20 cheaper per month... 10-year price guarantee.” — Allison (33:35)

Bonus Laughs

• On Spending Windfalls:
  “Don’t be weird about it.” — Jen (19:33)
• On Dishes:
  “I will eat out so much more because I hate the dishes so much, and I cannot hire dishes out… You can hire out your laundry. You can hire out your house cleaning. Also things I don’t do, but could hire out. You can’t hire out your dishes unless your cleaner does your dishes.” — Jen (22:56)
• On Willpower:
  “This isn’t 60 minutes of running on the treadmill kind of willpower… this is everyday life with everyday money decisions…” — Jill (24:06)

Quick Review: The 5-Step Framework

1. Know why you have extra cash.
2. Build/top off your emergency fund.
3. Knock out high interest debt (7%+).
4. Fix one problem in your life (intentional spending for meaningful improvement).
5. Invest the rest (maximize time in the market with IRAs, 401ks, or 529 plans).

Closing Encouragement

• Be intentional with your windfalls—no matter the size. The right structure takes the guilt and confusion out of spending, helps you progress toward financial freedom, and ensures extra cash works for you.
• “You succeed because you set up your environment to make it more difficult to fail.” — Jen (25:02)

For more frugal fun, subscribe to the Frugal Friends Podcast, check out their book, and remember: mindful, intentional use of extra money pays dividends far beyond the initial windfall!