what are your 6 ways to spend a raise?

Question

1. Pay off high-interest debt.
2. Build an emergency fund.
3. Add to your retirement savings.
4. Contribute to a flexible-spending account.
5. Add the extra money to your mortgage payments.
6. Use the money to beef up your kids' college fund.

Answer 1

Wow, those are great if you can do them, and exactly what I would recommend. However, most people find that their pay raise doesn't cover their cost of living increase, and will find it almost impossible to do any of these for very long.

Answer 2

one, two and three in that order. Get rid of debt and keep it gone. This interest is not deductible and therefore costs much more than you think. For example if you are in a 30% tax bracket and you are paying 18% interest you are really paying 25.75% interest because you have to pay after tax dollars to pay a nondeductible debt.
An emergency fund of three to six months would go a longer way to keep your peace of mind stable.
retirement and college savings are important. If needbe you can tap IRA's for education.

Answer 3

1) I have no debt.

2) I have my emergency fund

4) I don't do a spending account

5) No mortgage

6) No kids left to send through college, been there done that.

SO #3 it is !!! Any extra money I have goes to my investments for when I am old and grey.

Answer 4

Don't have any debts yet so what I will do with the raise is that I'll buy something that I've always wanted but can't afford before the raise.
Hmmm..what next? I'll invest it.

Answer 5

I would Pay toward house, credit card, 401-k, rebuild saving and checking account, save for new car, and buy something cool for myself.

Answer 6

We always put our raises in our retirement funds.