Sometimes a little extra spending money comes our way from either earning a pay raise, paying off a debt, getting a tax refund, receiving an inheritance or gift, etc. When this happens, it helps to think about how that money can help you create a secure financial future.
If you are in debt (i.e, you have loans, credit card payments, etc.), consider putting that extra money towards paying off the principal of that debt.
If you don’t have any debts to pay off, consider investing the extra money. Depositing the extra funds into a savings account, retirement account, or rainy day fund are all great ways to plan for the future.
Or, if you have a big trip planned or know you will be needing to make a large purchase in the near future, set aside the extra funds for that purpose so that you don’t have to use your credit card to pay for the upcoming expense.
Sage Personal Finance 