When you recieve a raise or bonus, do you put it into savings, pay down debt or run out and spend it right away.

We use to run out and spend it right away but in the past few years, up until dh was no longer working, we paid off debt with them.

You?

Dh's company is small and raises are few and very far apart, when we do get them we use them to pay down bills.

The same day I get a raise, say 3%, I up my 403B 1% and the rest gets absorbed into the spending plan. I will continue to do that till my 403 is maxed out.

Then the plan is to do the same thing with raises but put it in savings.

We divide it in thirds- one third goes into the working fund (usually goes for debt reduction) one third into long term savings, and one third into short term savings.

Usually goes on bills!

It seems that Gabe's raises just get absorbed into the budget. I wish it could go into savings.

Sara