What would you do with 5k more per month?

[Anonymous]

I'm going to say that I would save it all.

Of course, 5k more per month would be a 40% bump for us, so I might go crazy!

[Anonymous]

Is your rainy day fund to the level you want? I'd sock away in that first, then when it reaches the level you're comfortable with (3 months? 6 months? living expenses).

Then invest the rest.

[Anonymous]

Anonymous wrote:I recently got a new job and after all expenses (housing, retirement, general entertainment, 2k in the rainy day) we will have about 5k left every month. What would you do with that money? We already have about 100k in cash along with some index funds and we max out our retirement options. It's not exactly life changing, but I want to be wise about it. Just put more in index funds?

college funds?

[Anonymous]

We do a mix of index funds and high yield savings account.

[Anonymous]

Anonymous wrote:I recently got a new job and after all expenses (housing, retirement, general entertainment, 2k in the rainy day) we will have about 5k left every month. What would you do with that money? We already have about 100k in cash along with some index funds and we max out our retirement options. It's not exactly life changing, but I want to be wise about it. Just put more in index funds?

You can invest 40%, donate 20% and enjoy 40%. If you have a mortgage, everything should go towards principal until you've peace of mind of owning your home. Once paid off, go by 40-40-20 rule.

[Anonymous]

*I'm well aware of most people not caring for a paid off home.

[Anonymous]

Travel more. Pay for lawn and garden care.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I recently got a new job and after all expenses (housing, retirement, general entertainment, 2k in the rainy day) we will have about 5k left every month. What would you do with that money? We already have about 100k in cash along with some index funds and we max out our retirement options. It's not exactly life changing, but I want to be wise about it. Just put more in index funds?

You can invest 40%, donate 20% and enjoy 40%. If you have a mortgage, everything should go towards principal until you've peace of mind of owning your home. Once paid off, go by 40-40-20 rule.

Agree with putting a lot extra towards the mortgage, at least until the house is like 75% paid off. Then recast to get her monthly bill lower. Most of DCUM won't agree with us (depending on OP's mortgage rate).

But I disagree with donating 20% - that shit is for rich people, a demographic that does not include the OP. Also disagree with "enjoying" 40% - OP is not rich enough to do that either.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I recently got a new job and after all expenses (housing, retirement, general entertainment, 2k in the rainy day) we will have about 5k left every month. What would you do with that money? We already have about 100k in cash along with some index funds and we max out our retirement options. It's not exactly life changing, but I want to be wise about it. Just put more in index funds?

You can invest 40%, donate 20% and enjoy 40%. If you have a mortgage, everything should go towards principal until you've peace of mind of owning your home. Once paid off, go by 40-40-20 rule.

Agree with putting a lot extra towards the mortgage, at least until the house is like 75% paid off. Then recast to get her monthly bill lower. Most of DCUM won't agree with us (depending on OP's mortgage rate).

But I disagree with donating 20% - that shit is for rich people, a demographic that does not include the OP. Also disagree with "enjoying" 40% - OP is not rich enough to do that either.

I agree don’t donate it. Someone else can donate to charity.

[Anonymous]

How old are you and your spouse? What is your net worth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I recently got a new job and after all expenses (housing, retirement, general entertainment, 2k in the rainy day) we will have about 5k left every month. What would you do with that money? We already have about 100k in cash along with some index funds and we max out our retirement options. It's not exactly life changing, but I want to be wise about it. Just put more in index funds?

You can invest 40%, donate 20% and enjoy 40%. If you have a mortgage, everything should go towards principal until you've peace of mind of owning your home. Once paid off, go by 40-40-20 rule.

No donating, no enjoying. This is how people get themselves in trouble.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I recently got a new job and after all expenses (housing, retirement, general entertainment, 2k in the rainy day) we will have about 5k left every month. What would you do with that money? We already have about 100k in cash along with some index funds and we max out our retirement options. It's not exactly life changing, but I want to be wise about it. Just put more in index funds?

You can invest 40%, donate 20% and enjoy 40%. If you have a mortgage, everything should go towards principal until you've peace of mind of owning your home. Once paid off, go by 40-40-20 rule.

Agree with putting a lot extra towards the mortgage, at least until the house is like 75% paid off. Then recast to get her monthly bill lower. Most of DCUM won't agree with us (depending on OP's mortgage rate).

But I disagree with donating 20% - that shit is for rich people, a demographic that does not include the OP. Also disagree with "enjoying" 40% - OP is not rich enough to do that either.

We did this. We recasted twice. Paid it off and it's freeing. When you recast, keep paying what you paid so more goes into the mortgage.

[Anonymous]

I’d spend it, but I’m kind of a boom or bust person and I’ve just lucked into money my whole life without much of a plan.

[Anonymous]

Anonymous wrote:This exact thing just happened to me - late last year my comp went up and I now have an additional $5k net in monthly income. I opted to auto-invest all of it because my after-tax savings isn't too impressive so far. Our HHI this year will be around $1M so the extra $5k wouldn't have impacted our standard of living very much, anyway. I feel a sense of calm now that I am doing some significant, systematic nonqualified savings in addition to the retirement and college savings we'd already been doing. I'm doing tax efficient equity ETFs.

This is not similar.

[Anonymous]

When I went back to work our take home went up about $10k/month. We haven’t changed our lifestyle and save most of it.