Saving and paying down debt are two wise moves to help strengthen your financial position.

Whether it’s from a holiday gift, an inheritance or “just because,” receiving a gift of money opens doors to new possibilities. Of course, you could go on a shopping spree and have fun – many do. However, a more strategic approach can help strengthen your financial position. Check out these smart moves you can make with gifts of money.

Saving is always a savvy move

If you’ve ever panicked because of a surprise expense, you understand the value of having access to money in a savings account. Set aside gift money in an emergency savings account to create a financial cushion for the next time the unexpected happens.

If you already have 6-12 months of living expenses in an emergency savings account, consider a certificate of deposit (CD), which earns more interest than a savings account.

Another option would be to save the money for big goals such as retirement savings or putting a down payment on a house.

Reduce your debt

Every dollar you owe a creditor is money you can’t use for something else. When you reduce and pay off your debt you gain freedom to do more of the things you want to in life. Use gifts of money to pay down credit cards, student loans, medical debt, back taxes or any other borrowed funds.

Invest the gift of money

Many people hesitate to invest their money because investing comes with some risk. Using gift money to dip your toes into the world of investments can be a great way to begin diversifying your finances.

Splurge if you really want to

Does saving or investing the money make you feel deprived? Use a portion of the gift, maybe 10% to splurge and save or invest the rest.

Support a charity

Maybe your finances are already healthy and you’d like to share the joy of giving. Donate the money to charity or use it to help with disaster relief. Your gift will surely be appreciated.

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