5 Money-Savvy Things To Do With Your Pay Raise Or Bonus This Year

Consider putting your extra cash this year to good use with these smart money tips

3. Boost your emergency fund

 

5 Smart Things To Do With Your Pay Raise Or Bonus This Year 3

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An emergency fund consists of about six months of your income. Emergency funds are used to pay for unexpected costs, or to provide for you in the event of illness or retrenchment (remember, even insurance policies may take some time to give you a payout). Having an emergency fund removes the need to use expensive loans when you need cash urgently. The sooner you finish building the emergency fund, the sooner you can put more into retirement planning. Alternatively, if your retirement plans are well in place, building the fund sooner means you will have more discretionary income for vacations and shopping.

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