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re: Just got a 15,000 dollar raise but no life style change, WWYD?

Posted on 12/7/12 at 8:19 am to
Posted by Crbello4Hiceman
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Member since May 2011
502 posts
Posted on 12/7/12 at 8:19 am to
It's funny because $15k always feels like such a big bump but the tax man will rock you world and it is always a downer how little of a raise we actually get to keep.

If you don't feel like trying to learn the intricacies of the stock market, in order I would:

1) pay down credit card debt if applicable
2) save up a nest egg/ emergency fund. 6 months of total living expenses is a good start.
3) pay down tax-deductible interest debt (student loans/home loans)
4) invest whatever you don't want to use for #3 in an index fund (S&P 500 etc). Research for one with low fees. Index funds typically have a good long-run return and you can sleep on it and not watch the market daily like the rest of us schmucks.
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