Question of the Week
Each week we select a personal finance question that's top of mind for consumers.
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If I have extra money each month, what should I do with it?
If every dollar you have coming in each month isn’t already accounted for, then you have choices to make about where those “extra” dollars go.
First, make sure you’re meeting your basic financial goals. Maintaining an emergency fund, saving for retirement and paying off high-interest debt are usually among those priorities. You also might be funding a college savings account.
Next, you can consider other options. These may include putting money into additional investment or savings accounts, saving for specific goals, like a dream vacation, or paying off relatively low-interest debt, such as a mortgage.
Everyone’s situation is different. Spend some time brainstorming what’s important to you before settling on where these dollars go. In the meantime, looking into a high-yield savings account for the money is a good place to start.