Have Extra Money This Month? Here’s What You Should Do With It

what to do with extra money

Every once in a while you get a pleasant surprise when you realize you have a tad bit of extra money in your bank account. But before you head out to spend this on your next treat yourself item, there are a few things you should consider doing first!

Pay Off Debt

If you have any debt hanging around, you should definitely use your extra money to pay it off. Especially if this debt is on a credit card or other high-interest account that’s likely costing you way more money than it’s worth.

Putting a little extra money onto your debts is one tiny step towards being debt free. And when it comes to clearing outstanding accounts, every little bit counts!

Put Your Extra Money Into Your Emergency Fund

Assuming you have your debts all paid off (go, you!) then a great place to put your extra money is adding it to your emergency fund, especially if you’re in the process of creating it.

An emergency fund is a really important financial tool that is intended to help you pay for any financial emergencies that happen. And unfortunately, financial emergencies do happen! If you haven’t started your emergency fund, or if you’re just int he process of building it, this is a great place to put your extra money.

Add It To Your 401K

Retirement is going to come a lot faster than you think, so adding your extra money to your retirement fund is a great way to get a tad bit financially ahead.

When it comes to retirement, the more money you add to your account today, the more you’ll have tomorrow when you’re ready to cash in on your working life and travel the world, spend the afternoons at the golf course or spend your morning strolling along the beach!

Put It Toward Your Long-Term Savings Goal

Planning to purchase a house in a few years? Perhaps you’re saving up to take your Master’s, or you want to replace your old clunker of a car — if you have a little extra cash, then a great place to put it might be in your long-term savings goal.

Invest In Yourself

Assuming you meet all of your financial goals or you believe it to be a better investment, then invest your extra money in yourself.

While I like to be practical and money-oriented, focusing on savings, debt and otherwise, I completely understand the value in investing in yourself. And I’m all for it — pending it’s not overly frivolous.

I officially finished my Master’s not too long ago, and I decided a great way to celebrate was to invest in myself, so I got a little something to check an item off my professional development plan.

Investing in yourself can be a genuinely good decision to make, as long as it’s not a last-minute spending decision. Make that extra money count!

What would you put extra money towards? Tell me about it below in the comments!

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