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Extra Money

December 11th, 2010 at 09:37 pm

I have been thinking I need to have a standard allocation for extra income. I don't mean tiny amounts such as from decoy mail, but the occasional large chunk of extra money. In the past, I have decided on a case by case basis how to best use each cash infusion, but I want to stop doing that.

Here is my extra money allocation:

40% credit card debt
20% Roth IRA
20% regular savings
10% Egypt savings
10% mortgage

Once my credit card debt is gone, I will decide on a new allocation.

There is a reason I have been thinking about this lately. I usually get a Christmas bonus. I hope that will be true this year as well, but of course I can't count on it. Also, it is almost the time of year for seasonal overtime at my place of employment. I will literally be able to work all of the overtime I can stand for several months. The way it is handled is to record the overtime, then pay it all in one sweet check at the end of the high-volume period. In addition, a bonus is traditionally paid.

1 Responses to “Extra Money”

  1. frugaltexan75 Says:

    Looks like you have a pretty good plan for your extra income.

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