Anonymous wrote:OP here. One elementary age kid, and Grandmother set up a trust for education (very lucky, I know).

These are some very good suggestions, thank you. I especially want to be mindful of lifestyle creep.

So education is set, you are lucky. Then put 25% in to savings for near term "needs" like home maintenance/new car/vacation, etc. Add $500/month for extra spending to treat yourself. Rest into index fund or a portion into CD/Bonds, especially right now to capture guaranteed 5% for next 15-18 months. If you need a new car soon, I'd direct more to that and just pay mostly cash---why pay 6% on a loan when you could pay cash.

Save it. You don't have a ton of savings.

Also maybe someone to declutter my closets. And a new wardrobe.

Lifestyle conveniences: perhaps a trainer that comes to my home gym, a nutritionist, some prepared meals.

OP here. One elementary age kid, and Grandmother set up a trust for education (very lucky, I know).

These are some very good suggestions, thank you. I especially want to be mindful of lifestyle creep.

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.

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?

If you have kids, put at least 50% into 529

Then yes, Index funds. If you have a major purchase coming in the next 2 years (car/home maintenance/etc) then put that aside in a 15-18month CD at 5%

Do you have kids? College savings?

$5000 would dramatically increase our income (it's more than half of what we currently make), but I'd probably just save it and try not to succumb to the lifestyle creep.

$200 -- an extra nice meal out, activity, etc.
$500 -- vacation fund
Remainder -- Vanguard fund

A little boring but there's some fun in there.

What brings you joy, OP? What reduces stress in your life?

All into savings and pretend you don't have it.

Index funds is perfectly reasonable. If you have significant exposure to stocks in your retirement fund, it would also be reasonable to put it in bonds or CDs if you want to limit your risk. (Others will say that's absolutely wrong, since the expected returns are lower, but it's totally a matter of preference and your feeling about risk.)

I'd probably just save it, but maybe once a year go back (across the country) to visit family, instead of doing that once every 8-10 years. But $5k is more than I earn in a month so it's hard for me to fathom having that as extra money.

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?