What should I do with the extra income I will be earning from a promotion?

I am 26 years old, married, and have three kids. I was recently promoted. I will now have an extra $300-$400 in income and I'm not sure what I should do with it. I have about three months of expenses saved as an emergency fund. Should I invest my extra income or put it in a savings account? I'm new to investing and not sure what I should do with a little extra income.

Banking, Investing
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August 2018

What a nice problem to have. And congrats on the promotion. First, I would increase the emergency fund to at least six months of expenses. Then clear any debt you may be carrying at more than 4-5% interest. Your next priority might be to take maximum advantage of any 401(k) match your employer may provide. At that point, you may want to start some college savings plans for the children if you have not already done so. Or perhaps save for specific major purchases like a car, appliances, etc. The goal here is to never pay interest on anything again, except for a mortgage, which is at the lowest rates you will find and it's tax deductible. (Car deals at promotional rates will have the "interest" built into the price. There is no free money.)

The best to you and your family.

August 2018
August 2018
August 2018
August 2018