15 Things to Do With Your Extra Money

Some people spend their entire paycheck month after month. But if you're able to eke out some savings on a regular basis, you have a prime opportunity to better your financial situation. Similarly, if you come into extra money due to getting a bonus at work, a generous gift, or an inheritance, it's important that you put that cash to good use. Here's how.

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It's important to have cash on hand for a rainy day. If you don't have enough money in savings to cover three to six months of living expenses, use your extra cash to get closer to that goal.

ALSO READ: 3 Signs Your Emergency Fund Is Too Small

Saving consistently in an IRA or 401(k) plan during your working years could be your ticket to a financially secure retirement. If you have extra money, consider increasing your current contribution rate.

Buying stocks is a great way to grow wealth for the future. You can use your extra cash to open a brokerage account and load up on quality stocks that have the potential to gain value over time.

When you rent a home, you pay someone else's mortgage. When you own a home, you pay your own, and eventually, you get to own an asset that could be very valuable. If you have extra cash on hand, try setting it aside for a down payment.

ALSO READ: 4 Ways to Make a Down Payment on a House When You Don't Have Much Saved

There may be aspects of your home that are outdated or aren't so functional. It's not a bad idea to use your extra money to make improvements that not only create a more comfortable living environment but also help the value of your home increase.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

If the interest rate on your mortgage isn't great, then it makes sense to use your extra money to chip away at that loan. The sooner you pay down your loan's principal, the less interest you'll end up paying.

Paying your auto loan off early could mean saving lots of money on interest. If you're sitting on extra cash, use it to whittle down that balance.

ALSO READ: How Much Car Can You Really Afford?

Credit card debt is among the least healthy types of debt to have. Not only can it cost you a lot of money in interest but it can also cause damage to your credit score. It definitely pays to use your extra money to shed your credit card debt.

Investing in stocks isn't the only way to get wealthier. Buying real estate can be similarly rewarding, and so it pays to save up some of your extra money as a down payment on an income property.

It takes money to get a new venture off the ground. If there's a business idea you'd like to pursue, you can use your extra cash to fund it -- and potentially turn a huge profit.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Maybe you're lacking certain skills that are stopping you from getting promoted. Consider using your extra cash to take classes or even go back to school full-time for a while.

ALSO READ: The Big Winners in the Job Market Do These 4 Things

Ignoring household or vehicle repairs can result in costlier fixes down the line. Rather than keep delaying, use your extra money to address the issues you're dealing with.

College certainly isn't getting any cheaper. If you set aside funds for your children's education, they won't need to borrow as much to get a degree.

Cryptocurrency investing carries risk. But if you have the tolerance for it, it could pay to add some digital coins to your investment mix. Doing so could lend to more diversity in your portfolio.

ALSO READ: Why Ethereum Is the Top Cryptocurrency Investment of 2021

Many workers today struggle with burnout, and so it pays to use some of your extra money to avoid that very scenario. If you can't remember the last time you took a vacation, spend some of your cash on a much-needed getaway. Or, buy yourself a pass to a yoga studio or something similar that can help alleviate stress.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

If you're sitting on extra cash, you're in a prime position to improve your finances. Be sure to make the most of that money, especially if you feel lucky to have it in the first place.

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