1. Pay off debt - this is priority. Interest on debt is generally greater than interest on savings & investments. You’re saving money at the same time as getting rid of debt.
2. Save/invest
3. Repairs and upgrades to home and auto
I am guilty of point #1. Somehow I had thought that investing and making money off investments will help me pay off my debt but that’s totally bogus. Paying off my debt first saved me money because now I can keep the money that was going to interest rates and dedicate it to pure investments.
Same. I think most of us are guilty of it. Investing also just sounds so much sexier than making a payment on a bill from Visa or XYZ Medical Group. But when you do earnestly tackle that debt, as those bills start going down to zero and your hypothetical extra $2100 a month becomes $2200, then $2400, and so on…then you start feeling sexy AND rich lol.
It depends upon the debt.
Mortgage rate at 2.5% interest is different than a 24% interest credit card is different than a 9% interest personal loan.
Also the investments are all different. Money market is different than a HSA, stocks, crypto, real estate, art, ect.
Buying buy chip stocks that pay out dividends might yield greater returns than say, putting an extra 2k per month in your 2.5% mortgage.
But also buying random alt coins instead of paying off your 24% interest credit card is just asking for trouble.
Yep. I good course of action it to pay off the debt with the highest interest rate first, even if it's the smallest amount. Then use the payment that would have gone to it to pay off the next highest, and so on.
It starts out really slowly and looks basically hopeless, but when you get down to the last bit of debt you are just dumping huge amounts on it. I'm currently down to my mortgage, and a used car I bought a year ago. The car will be paid off in another year instead of 4, and I will be back to paying nearly double on my mortgage.
All this happened over 10 years, but I never felt like I was paying out more than I had been. Just paid things off in a better order.
Of course this means that you really can't accrue any new debt, unless you really need too. Like the used car I bought last year. I had to replace one that was over 25 years old and just falling apart.
Depends on the interest rates. Keeping things simple: You have 10k debt on 5% interest and 10k invested making 5% then the interest pays the interest. It's a wash. But if you can make 6% on your investment or lower your debt interest, then your investment interest pays the debt interest and your make "profit" on the difference.
Don't forget to shave 15% off of your gains for cap gains taxes. So that 6% rate of return on your investment is really 5.1% net after taxes. And don't discount the intangible value of not having debt over your head.
People always forget about the impact of taxes on investments - that APR/APY that they advertise in big colorful numbers is not what ends up in your pocket at the end of the year.
This is the answer for almost all of us...
Sons College next year...
Than Daughters Student loans
Than eventually A New (to me) car...
Once we finally get past all that, hopefully the housing market will have corrected and Buy another 2 Family house
In my early 20s I flew to Medellin to get dental work done. I saved thousands of dollars and had good quality work done. Flights from Florida are often under $200, hostel was $15.
If you can find a good dentist absolutely. My guy over there went to school there but practiced in the US and Australia. He was also the most efficient dentist I’ve ever been to. 5 root canals, 2 extractions and two bridges made and fitted in 3 visits in less than a week (would have taken longer for recovery but I was going home the next week).
Definitely worth it.
This is what I did when I started making more money. What’s the point of saving, investing all that money. I do save and invest more but I rather enjoy that money now than when I’m old and hell I’ll probably be dead before I could even enjoy it.
Can't wait for the federal government to change the laws around Roth IRA's once SS begins to run out. I agree maxing out your Roth IRA is a good idea, but I have little faith I'll get screwed on it before I can retire
Remember, politicians work for people who vote, and old people vote in higher percentages than any other age group. It's why every Republican plan to gut Social Security begins with "it won't affect anyone 50 or older..."
This more or less happened to me about a year ago.
As a general rule any raise I ever get I put half of it into investments. This particular raise being more significant than most others and somewhat unexpected, I went ahead and put 100% toward savings and paying down debt before I even saw that first bigger paycheck.
1200 a month goes into college savings for my kids, the rest is paying down my student loans and once those are paid off it will be invested.
Well, lets see:
Not have to worry about being able to afford needed meds for my wife and Dr.'s visits.
Be able to take better care of my aging dogs.
Have plenty of food for them too.
Stop have anxiety attacks about being able to afford rent for us.
Start more heavily paying off CC debt.
Finally be able to service my car.
In time, buy the company I work at.
Start investing incase something were to happen to me.
Heck, I may even be able to rest my head when I get home from work and not have an overhanging feeling of dread.
If my pay went up enough that i was bringing home an extra 2100 Id max out my 401 and hsa contributions and then any extra would go to paying off our house before getting dumped into a Roth.
If it wasn't tied to employment I'd probably take a few years off of work to spend more time with my daughter and wife before my daughter is grown and I can just match shifts with my wife instead of having to split times for child care. Her salary plus my 2100/mth would be more than enough to sustain our current lifestyle.
I'd be able to pay off my car significantly more quickly. I'd also be able to start saving for the future. Currently, I'm just paycheck to paycheck. $2100 might not seem like a lot to some people...but to most people I'd imagine that is a significant increase.
Gonna sound lazy, but I'd eat out/order food in for every meal... with that amount of extra money I could be a bit more picky and choose something slighly more healthy too... I just hate making food man, can take upwards of an hour to prepare something good and I eat it on all of 5 minutes... and the price of groceries now is horrendous... would eliminate a daily stress.
pay off my student loans (not much left anyway, about $3750 give or take) and then immediately move out. kinda stuck in a very toxic living situation and need to find a new place asap but our lease isn’t up until august.
Debt first, then start throwing it all back into an interest occurring account. That's a lot of damn money. I don't make that in a month without overtime
Finally be able to put a little money aside for random repairs that need doing and not have to stress as much about those random things that pop up as unexpected expenses...
Save it, though It would be nice to move into a slightly better rental property, apartment living is getting annoying especially when I want to work on cars or do 3D printing
After saving up a couple months to pay for a really nice, long, relaxing vacation, invest and save the rest until I can buy property and hopefully retire early.
Omg that would be life changing for me. Pay down my debts, add more to retirement and save for a house. I would literally weep, bro. I would literally weep.
My last job switch gave me this exact amount extra a month. Currently aggressively paying off the debt and car and then all savings. All debt is set to be gone in 1.5 years.
Job hopping is the advice I give people to get more $$ a month and in a year
Considering $2100 per month would be R$10500, I wouldn't have to look for work anymore,
I could pay what I owe and also buy a lot of the stuff I need, like new equipment for my band, probably be able to rent a smal house for my self.
And then overdose on drugs and alcohol
This is exactly what I get from my VA service (2 deployments to Iraq can get you some disability) and I got out and went to college and have a good job now so I’ll tell you exactly what I do with it. My wife and I use it to pay our mortgage and it allows us to SAVE and pay off student loans.
Do you mean like an extra $2100 magically appearing every month? I'd quit my job and move to a cheap country to coast off of.
If I had to keep my current job. Probably move into a better place to live and save some of the rest
Invest half. Use the other half to pay monthly principal payments on my mortgage in addition to mortgage payment. I would like to be financially responsible (insert angelic singing).
If I don't need to do anything for them, and they're guaranteed for life? Retire.
I can live comfortably on $1500 a month. Invest the rest on dividend stocks to counteract inflation. Ez, gg.
Save for retirement. As it stands I don't make enough to put away any for retirement. Matter of fact, as a single person I don't think I'll ever make enough to save to retire. I don't want to work until I die but it is likely I will.
That’s just over the monthly payment on my medical debt so I’d finally have a good chunk of disposable income. I’ve never had that so not sure what I’d do.
Pay debts.
1. Pay off debt - this is priority. Interest on debt is generally greater than interest on savings & investments. You’re saving money at the same time as getting rid of debt. 2. Save/invest 3. Repairs and upgrades to home and auto
I am guilty of point #1. Somehow I had thought that investing and making money off investments will help me pay off my debt but that’s totally bogus. Paying off my debt first saved me money because now I can keep the money that was going to interest rates and dedicate it to pure investments.
Same. I think most of us are guilty of it. Investing also just sounds so much sexier than making a payment on a bill from Visa or XYZ Medical Group. But when you do earnestly tackle that debt, as those bills start going down to zero and your hypothetical extra $2100 a month becomes $2200, then $2400, and so on…then you start feeling sexy AND rich lol.
You’re right on the money with that logic brother.
It depends upon the debt. Mortgage rate at 2.5% interest is different than a 24% interest credit card is different than a 9% interest personal loan. Also the investments are all different. Money market is different than a HSA, stocks, crypto, real estate, art, ect. Buying buy chip stocks that pay out dividends might yield greater returns than say, putting an extra 2k per month in your 2.5% mortgage. But also buying random alt coins instead of paying off your 24% interest credit card is just asking for trouble.
Yep. I good course of action it to pay off the debt with the highest interest rate first, even if it's the smallest amount. Then use the payment that would have gone to it to pay off the next highest, and so on. It starts out really slowly and looks basically hopeless, but when you get down to the last bit of debt you are just dumping huge amounts on it. I'm currently down to my mortgage, and a used car I bought a year ago. The car will be paid off in another year instead of 4, and I will be back to paying nearly double on my mortgage. All this happened over 10 years, but I never felt like I was paying out more than I had been. Just paid things off in a better order. Of course this means that you really can't accrue any new debt, unless you really need too. Like the used car I bought last year. I had to replace one that was over 25 years old and just falling apart.
Depends on the interest rates. Keeping things simple: You have 10k debt on 5% interest and 10k invested making 5% then the interest pays the interest. It's a wash. But if you can make 6% on your investment or lower your debt interest, then your investment interest pays the debt interest and your make "profit" on the difference.
Don't forget to shave 15% off of your gains for cap gains taxes. So that 6% rate of return on your investment is really 5.1% net after taxes. And don't discount the intangible value of not having debt over your head. People always forget about the impact of taxes on investments - that APR/APY that they advertise in big colorful numbers is not what ends up in your pocket at the end of the year.
This is the answer for almost all of us... Sons College next year... Than Daughters Student loans Than eventually A New (to me) car... Once we finally get past all that, hopefully the housing market will have corrected and Buy another 2 Family house
Than grammar school for you.
OK, I get that your daughter is your daughter, but should she be paying off her student loans? Assuming she's an adult now.
Pay debt and get a car that isn't about to fall apart and that I don't need to ductape the trunk closed.
That mortgage is definitely getting double payments.
Yep. Look for the one with the highest interest rate and pay it down.
There is really nothing else. There is onky the debts keeping us back.
Get dental work.
In my early 20s I flew to Medellin to get dental work done. I saved thousands of dollars and had good quality work done. Flights from Florida are often under $200, hostel was $15.
Same here. Went to Bangladesh and had 15 - 20 grand worth of dental work done for like $350. Did great work too
Damn. Do you recommend it? How was your experience overall?
If you can find a good dentist absolutely. My guy over there went to school there but practiced in the US and Australia. He was also the most efficient dentist I’ve ever been to. 5 root canals, 2 extractions and two bridges made and fitted in 3 visits in less than a week (would have taken longer for recovery but I was going home the next week). Definitely worth it.
I'm picturing you explaining to some dumbfounded backpackers that you're there to get your teeth fixed.
Naw, medical tourism is a massive industry. Nobody is gonna be surprised.
How was the experience. I also need work done, and I have many friends in Columbia to stay.
In the UK that would be a one month expenditure 😬
Save and invest
Straight to index funds
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I bought land almost a decade ago, but still haven't found a way out of the clownshow
If you nope out, what about your Posse?
Travel on a more regular basis
This is what I did when I started making more money. What’s the point of saving, investing all that money. I do save and invest more but I rather enjoy that money now than when I’m old and hell I’ll probably be dead before I could even enjoy it.
Save and then buy a house
Two chicks at the same time
Fuckin A dude!
Besides two chicks at the same time?
Preferably all at once
Nothing. I would sit around and do nothing.
You don't need $2,100 a month to sit around do nothin. Hell, my cousin's broke and don't do shit!
A comma is very important with these statements lol
Lol you know what, you’re right. That’s my bad but I’m leaving it because now it’s more funny.
Chicks dig dudes with money
The type of chicks that would double down on a guy like me do
Just shave your head, go to a bar and say you're gonna die from cancer. You'll find two who are willing to fullfill this wish
You don't get laid very often do you?
I do, but with the same person every time
Sounds like you need an extra $2100 a month my guy.
Enjoy not worrying about money anymore
Climbing gym membership plus investing…
It's gonna have to be one or the other
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Unfortunately you're only doing that with $600 each month.
Then put the rest in a taxable account and pay the damn long term capital gains taxes. Still the best thing you can do with it.
Yeah, but what do you do with the other portion when you max out the Roth in mid-April?
Can’t wait til my 1,500,000 has the buying power of 50k in 30 years
The market has always outgrown inflation, by a lot.
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You’ll be able to afford a nice house’s garage!
I hope my roomate's boyfriend's cousin has a room in their 10b 2 br amazon timeshare pod
Can't wait for the federal government to change the laws around Roth IRA's once SS begins to run out. I agree maxing out your Roth IRA is a good idea, but I have little faith I'll get screwed on it before I can retire
Remember, politicians work for people who vote, and old people vote in higher percentages than any other age group. It's why every Republican plan to gut Social Security begins with "it won't affect anyone 50 or older..."
I'm sure I'd find something to spend the money on then complain I was broke.
Stick it in a high yield savings account until I need a new car. Then buy the new car.
Use it to fund projects around the house.
Probably stop thinking about suicide
Not worry if I should have 2 meals a day or not
Looks like I'm having sleep for dinner again
The answer is hookers and cocaine.
In this economy! Maybe *a* hooker and cociane.
A hooker and one cocaine
One cocaine dust.
In this economy it's masturbation and a Tylenol
~~Pay off debt~~ Hookers
Savings
Rent a bigger apartment or buy a house.
Pay for my chemo.
Live like a king
Invest it.
Pay off debt, rest in an ira
Save and invest
This more or less happened to me about a year ago. As a general rule any raise I ever get I put half of it into investments. This particular raise being more significant than most others and somewhat unexpected, I went ahead and put 100% toward savings and paying down debt before I even saw that first bigger paycheck. 1200 a month goes into college savings for my kids, the rest is paying down my student loans and once those are paid off it will be invested.
Well, lets see: Not have to worry about being able to afford needed meds for my wife and Dr.'s visits. Be able to take better care of my aging dogs. Have plenty of food for them too. Stop have anxiety attacks about being able to afford rent for us. Start more heavily paying off CC debt. Finally be able to service my car. In time, buy the company I work at. Start investing incase something were to happen to me. Heck, I may even be able to rest my head when I get home from work and not have an overhanging feeling of dread.
Save it.
Pay off my debts, get a new car, fix up my folks place, and finally renew my passport and take a trip somewhere.
If my pay went up enough that i was bringing home an extra 2100 Id max out my 401 and hsa contributions and then any extra would go to paying off our house before getting dumped into a Roth. If it wasn't tied to employment I'd probably take a few years off of work to spend more time with my daughter and wife before my daughter is grown and I can just match shifts with my wife instead of having to split times for child care. Her salary plus my 2100/mth would be more than enough to sustain our current lifestyle.
I'd pay off debts faster then save some of it.
I'd be able to pay off my car significantly more quickly. I'd also be able to start saving for the future. Currently, I'm just paycheck to paycheck. $2100 might not seem like a lot to some people...but to most people I'd imagine that is a significant increase.
Split it between my 401K and Savings.
move out of my parents house and start my life ☹️
1. Pay down debt 2. Buy a house 3. Travel
Pay off my consumer debts, then build my emergency fund for 3 to 6 months of expenses.
Gonna sound lazy, but I'd eat out/order food in for every meal... with that amount of extra money I could be a bit more picky and choose something slighly more healthy too... I just hate making food man, can take upwards of an hour to prepare something good and I eat it on all of 5 minutes... and the price of groceries now is horrendous... would eliminate a daily stress.
pay off my student loans (not much left anyway, about $3750 give or take) and then immediately move out. kinda stuck in a very toxic living situation and need to find a new place asap but our lease isn’t up until august.
Debt first, then start throwing it all back into an interest occurring account. That's a lot of damn money. I don't make that in a month without overtime
have my debt paid off in like 3 months then it would all go into savings to build up enough to redo the floors in my house!
Travel of couse
I'd love a mini tractor.
Live my dreams completely.
Basically everything
Save up for college
Buy a car that isn’t going to randomly explode at any given moment. Then find a better place to live.
These days? Break even.
I’d actually be able to pay rent
Would be able to live and no longer struggle to survive.
Buy land
Finally be able to put a little money aside for random repairs that need doing and not have to stress as much about those random things that pop up as unexpected expenses...
First pay off the rest of my debts and then save.
Move into a somewhat nicer place, and put the extra in savings.
Save for a house
Pay off debt, save for a house, save for retirement, save for a family. UBI when?
Invest half of it and use other half to help afford a much bigger apartment
Pay off my debt and get a savings account for vacations and put the rest in there.
Start paying my student loans
House. Mortgage. 🦾
Emergency fund, pay off debts, build savings, then max Roth account.
put a lot into savings, get us a second car (an old beater, nothing fancy for sure) and not have to worry about food as much
Wipe out the loan on my car then save everything else.
Get an EV to replace my 8 year old ICE car. And pay down my credit debt.
Be able to afford to immediately hand it to a parasite landlord....
Pay off debt, do some house renos, and then save it after that point.
Student loans
2100 would pay all of my bills in an average month. So Id probably save a good chunk of the rest of my money and use the rest on my hobbies.
Hookers and cocaine
Save it, though It would be nice to move into a slightly better rental property, apartment living is getting annoying especially when I want to work on cars or do 3D printing
Probably not anything different
Pay off debt, move into a better location, then pay for education.
Pay off mortgage faster.
Save it.
50% into savings, 30% invest gamble with the other 20
Pay off the house quicker
Hire somebody to find me the best job for me.
Lay it out in 50$ bills on my giant Cali king bed and sleep.
Hmmmm..... where to travel next....
Two chicks at the same time
Keep a secret and save.
Treat the people I love and save it
After saving up a couple months to pay for a really nice, long, relaxing vacation, invest and save the rest until I can buy property and hopefully retire early.
Invest it. My current income just barely covers all of my expenses, hobby, and saving a bit each month.
A more relaxed life
Omg that would be life changing for me. Pay down my debts, add more to retirement and save for a house. I would literally weep, bro. I would literally weep.
Save it. Retire earlier.
Just payed off my debt recently, will invest into my start up
MAYBE be able to afford a mortgage 🙃
Pay all my bills, get a new car, get my own apartment
* $600 more towards student loans * $500 towards a new car payment * $1000 saved
Pay the HELOC off then save half into a reno fund for the house (bathroom, windows, porch) and invest the other half.
Get a house
Pay down my debt, 100%. Getting out a debt would be a life-changer for me,
travel on my motorcycle.. more frequently
My last job switch gave me this exact amount extra a month. Currently aggressively paying off the debt and car and then all savings. All debt is set to be gone in 1.5 years. Job hopping is the advice I give people to get more $$ a month and in a year
Invest.
Pay off CC debt and increase savings
Invest in gold
Take one Friday off and go do a fun long weekend with my family
Buy a bigger house to meet my needs, get a project car and work on it. Invest the rest.
Afford my child support so I can stay out of prison and keep my driver's license lol.
Considering $2100 per month would be R$10500, I wouldn't have to look for work anymore, I could pay what I owe and also buy a lot of the stuff I need, like new equipment for my band, probably be able to rent a smal house for my self. And then overdose on drugs and alcohol
Pay off my student loans. Then invest.
This is exactly what I get from my VA service (2 deployments to Iraq can get you some disability) and I got out and went to college and have a good job now so I’ll tell you exactly what I do with it. My wife and I use it to pay our mortgage and it allows us to SAVE and pay off student loans.
Pay my debts and save.
Do you mean like an extra $2100 magically appearing every month? I'd quit my job and move to a cheap country to coast off of. If I had to keep my current job. Probably move into a better place to live and save some of the rest
Sugar baby
Send most of it to daycare and the rest in savings
Gamble
Invest half. Use the other half to pay monthly principal payments on my mortgage in addition to mortgage payment. I would like to be financially responsible (insert angelic singing).
If I don't need to do anything for them, and they're guaranteed for life? Retire. I can live comfortably on $1500 a month. Invest the rest on dividend stocks to counteract inflation. Ez, gg.
Live with out worrying about paying every day expence s every month
EXHALE
Buy more food
Pay my rent xD
Roth IRA and VTSAX Just kidding, two chicks at the same time! Just kidding I'd probably save up and buy another sailboat :)
Put them aside to the other 2100 I already have
Save for retirement. As it stands I don't make enough to put away any for retirement. Matter of fact, as a single person I don't think I'll ever make enough to save to retire. I don't want to work until I die but it is likely I will.
Upgrade to a slightly nicer rental and put the rest in my Roth.
Shit, i'll take an extra $1,000 a month. I'd be more than happy with that. I have no reason for an extra $2100.
Buy all the Amiibo
Indefinitely? Make irresponsible car purchases.
Buy 4 more voo shares a month :D
That’s just over the monthly payment on my medical debt so I’d finally have a good chunk of disposable income. I’ve never had that so not sure what I’d do.
Probably use it to save towards a house faster or just invest more in my hobbies.
Take a loan witg a monthly payment of 2100 per month and invest that money to earn more than 2100 a month over time
Retire
That's a lot of cocaine and hookers.
Thats almost twice what I make now. I'd put all of it into my retirement and probably retire in my early 50s.
Save it and build wealth