I assume someone’s already asked this question already here but wasn’t sure what search terms to use.
I live in the U.S., California, but maybe question’s relevant to where you live.
I’ve gotten to a point where I’ve got at least $500 extra every month after monthly expenses for the next 6 months (including entertainment). I want to spend it responsibily.
Should I pour it into:
** credit card debt? - only have one card with a few thousand
** emergency fund - may need it by mid-next year due to scheduled layoffs at my company
** mortgage? - I don’t have one, but should I save for down payment? But maybe one could get by without down payment in the current environment? I’d like to buy a house after I’m stable with another job in 2010.
** savings account? - of some sort…but seems pointless since credit card rate would be higher than any savings vehicle (I presume) out there
** stock market? - seems foolish to re-invest in stocks right now, but maybe in 2009? I do need to plan for retirement, but may need funds in year or so. Or maybe I’m wrong about stocks, maybe there are opportunities…
** some other type of investment? - bonds, gold, silver, something more exotic?
I’m leery of investing of anything that involves education and training on my part. Presumably, there is probability of making mistakes, resulting in losses. Not sure I want that kind of risk.
What would you do financially with extra cash like that every month?