The odds of striking it rich by winning the lottery are slim. But a smaller cash windfall in the form of a company bonus, an inheritance, or a tax refund is a far more likely scenario for many Canadians. So what do you do when you hit the jackpot and land a lucky cash windfall? Here are 7 smart ways to deal with the cash and not regret it in the morning.

1. Pay Off Your Credit Cards

I don't mean to rain on your moneyed parade, but paying off your high-interest debt and killing your credit card balance is a smart use for found cash. There's no financial investment that can beat the guaranteed 19% or higher after-tax return of eliminating your credit card debt.

Think you'd rather hit the shops and splurge? Try this free Credit Card Calculator first to see how much your plastic is really costing you.

2. Settle Your Car Loans, Lines of Credit

After eliminating your high-interest debt, take an honest look at the costs of carrying your lower-interest debts, such as car loans and lines of credit. Paying down these debts with a windfall could get you out of the red and into the black fast, giving you more options in your financial future.

3. Pay Down Your Mortgage

If you're free from consumer debt then you're really in lucky territory. Consider adding your new found cash to your mortgage so that you can own your home sooner. If you've got a mortgage with prepayment privileges, then 100% of your paydown goes to principal, and you'll drastically reduce the amount paid in interest to the bankers.

4. Ramp Up Your RRSP

You want to retire, right? Well, investing your windfall in your RRSP not only reduces your taxable income, but helps your money grow tax-deferred. This 5 Minute Guide to Your RRSP is a great place to learn more about contribution rules, and these 3 Places Worthy of Your RRSP Account offer a few places to stash your cash.

5. Top Up Your TFSA

It's a good idea to have some money put away in an emergency fund for a rainy day. A good place to shelter your money is in a Tax-Free Savings Account, where you can save up to $5,000 of your windfall annually and pay no tax on earned income. Need convincing? Here are 5 Ways a Tax-Free Savings Account Can Make You Rich.

6. Invest in Your Child's RESP

Investing your company bonus in your kid's Registered Education Savings Plan (RESP) won't get you a tax refund, but the investment earnings grow tax-free as long as they are in the plan -- plus, you can qualify for up to $500 per child each year in government grants. How's that for a bonus?

7. Go Ahead -- Spend It!

If you've made it this far down the list and you're debt-free, then go ahead and spend your windfall. Life is short and a simple splurge is well-deserved when your debts are paid in full and you're in excellent financial shape.

Your Turn: What would you do with a financial windfall?

: 4:11 AM in Saving