Twice a year I recieve 3 paychecks in a single month... But I normally buget to live on 2... So what do I do with this Extra Cash?
I send it to my retirement accounts and never miss a dime!
I normally take the first extra check and use it to buy CD's and stick in my Roth IRA Savings/CD account... the second I use to buy more mutual funds.
Why does this system work for me? Because if I stick two $1,000.00 contributions in my accounts, I only have to funnel in $250.00 a month to max out my Roth IRA for the year... and $250.00 a month is far more do-able than $416.66. It helps make saving for retirement less painful.
So, Since this is my first Extra Check of the year, I'll be sending $1000.00 to my Roth ING Savings account. I'll leave the money liquid at 1.1% interest and depending on CD rate, I may use some of it for a CD if I can get a decent rate... but I highly doubt that I will be able to.
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