What to Do With Extra Money: 10 Ways to Invest

Here are all the best ways to make extra money work for you.

By Lyle Daly – Updated Feb 18, 2025 at 1:59 PM

Key Points

Pay off high-interest debt, such as credit card debt, to save money on interest charges.
Increase your emergency fund to cover three to six months of living expenses.
Contribute more to retirement savings or invest in ETFs or mutual funds for diversified growth.

If you've recently gotten a raise, tightened up your budget, or received a financial windfall, you might find yourself with more money available than before. People in this situation often ask themselves a common question: What should I do with extra money to improve my financial situation?

There are many great ways you can use your extra money to build wealth and a better future. You'll find the best options on the list below and can choose the ones that best fit your financial needs and goals.

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10. Spend on yourself

It's great to look for ways to build wealth with extra money, but it's also OK to spend on yourself. You could put more money into a hobby, save up for a vacation, or make that big purchase you've been putting off.

There's nothing wrong with rewarding yourself for your hard work. It's important to find that balance between being financially responsible and using your money to improve your quality of life.

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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