Thanks for all the well wishes with my recent bit of good news.

I'm wondering what reader's would suggest I do with this $100/month I'll be netting.  I see a couple of different options:

  1. Increase student loan payments
  2. Increase contribution amount to emergency fund
  3. Increase RRSP contribution amount
  4. Clothes & other fun stuff
  5. Something else I'm not thinking of
What do you think?



  1. $50 to the E-fund and $50 to the professional clothes fund.

  2. OMG! Does Gail read your blog? Or your mind?

  3. I think it's great you are not 'using' this money to increase your regular budget for living and designating it for another place instead. It`s a great source of `found money`when you can do this.

    I echo what your mom said, or my second choice would be half to loans and half to the clothes.

  4. Don't fall in the lifestyle inflation trap. Live like you didn't get a raise and save the rest. Increase your contributions to whatever your debt repayment plan is to pay off first.

  5. I recently got a raise and chose a very lame present (but future awesome) option: increase retirement account and debt payments. That's what I suggest you to do also. :) Again, congrats!

  6. @ mom - too funny, I just read Gail's post and it's the perfect advise to go along with my post this morning!

    I think I will probably go with a combination of the advise above. $50 to RRSP and $50 to a professional wardrobe fund. I have no clue how much I would have to save to have a 'professional wardrobe'.

    I'll make the auto-debit changes for Jan-2010. Right now I'll use the extra money to meet my 2009 goals faster (debt free Christmas, $1000 in my e-fund & $3000 in RRSPs)

    Thanks All!

  7. It looks like you've made up your mind but I'll leave my two cents just in case! What about setting up a "freedom fund" - savings earmarked for when you see that fantastic new bag or phone or whatnot that you want - separate from the emergency fund.

  8. @ Jenn - I like the idea of having a future/freedom fun for the random stuff that comes up that you want... I think maybe i'll do something like that once I've reached a few of my other goals...

    One of my problems is that I often try to do everything all at the same time.. which creates two problems. One, it sets me up for failure on one or some of the goals, and two - it takes a lifetime to reach any of the goals.

    I see a fund like this happening in the next 3-6 months or so

    Great advise!

  9. Pay off those student loans! =)

  10. @ Bank Gal - I'm intrigued. Your the first person to suggest the student loans... hmm...

  11. Jessie - I would also like to suggest you use this first raise to increase your student loan repayment effort. but I think splitting the money between it and your RRSP would be a great thing - gets two goals accomplished faster.

    I know this won't be your last raise, so the next one you get you could increase your student loans and save in your emergency fund. (Depending on what the next one will be like)

    Getting out from under those student loans will free up a bunch of cash for you to start moving towards your other savings goals. And as someone who no longer has those pesky things, it's a truly great feeling to know that you don't owe the government any more money! It's odd to get a refund from them when you are paying them loan plus interest currently - especially when you'll probably give it right back to them with interest while you still have those loans.

    You'll make the right decision no matter what you decide. =)


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