When you come into extra money either from a bonus at work, a second job or a nice little windfall of some sort, it can be tempting to just spend it. It can also be that you’re feeling your conscience tell you to do something really ultra responsible with it. Why not do both?
Split the money into three and put each portion towards something specific.
The first 33%: Pay down your debt. Put the money into paying off a credit card balance or adding extra money to a bill. Don’t reduce your payment next month! Keep things going.
The second 33%: Put money in the bank. Hopefully you have a savings account. Put this money away for a rainy day or for savings or into one of your silo funds. A silo fund is generally a fund designated for something specific like a vacation or a new gadget.
The final 34%: Spend it! Have fun once in a while. Its really smart to pay down your debt and save money for a rainy day but live a little too!
