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Lesko Financial: Putting Extra Dollars to Good Use

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Bryanna:  Some American workers got a bump in their take-home pay this month. If you’re one of them, Greg Lesko, of Lesko financial, has some tips on how to put those extra dollars to good use.

Greg: This month, the IRS decreased the amount it withholds from many workers’ paychecks because of the new tax law. This could be a slight rise or something more substantial, depending on your tax bracket and your previous withholding. Instead of just pocketing the extra, or letting it slip into your bank account unnoticed, there are some deliberate ways you could use it to help you build your financial future. The first is an emergency fund either a new one or adding to one you already have. That could keep you out of debt when the unexpected happens.   

Bryanna: What other ways could you make the most of those dollars?   

Greg: Increase your savings or investments by the same amount as the extra. Putting more money into a retirement fund would be a good way to do that.
You could also use the increase to pay down debt especially high-interest credit card debt. Or you might make an extra payment on your mortgage or other outstanding loan.   

Bryanna: What if you want to spend it?   

Greg: Many people regret impulse buys; a better idea would be to save towards some future purchase, maybe a fun goal like a vacation. That will help you develop the savings habit. And here’s an idea. Take the extra dollars, add an equal amount from your paycheck and put it towards any one of these goals and double the benefit to your finances.