What to Do With Extra Cash

WHAT SHOULD I DO WITH EXTRA CASH I'VE STORED UP? One of the fun parts of being a financial planner is getting to field and answer questions from clients and readers all around the country. In these Work Your Wealth episodes I'll be taking time to address and answer questions I've come across from readers and clients throughout my career. Today I'm answering the above question and sharing some details (and numbers) behind our personal finances. HERE'S WHAT YOU'LL LEARN FROM THIS EPISODE: General rules I use with clients to determine where to put extra money The formula to decide how much should go where The three categories you should focus on with your extra cash Questions we ask ourselves when allocating money towards different goals Why we review our net worth on a quarterly basis The importance of reevaluating what you need in your emergency fund The general rule of how much you should have in your emergency fund A few banks recommendations to store your emergency fund How we handle donations in our family to be most impactful How we allocate extra cash towards our children How we added some flexibility in our monthly cash flow What we decided to spend our "splurge" money on LINKS WE MENTIONED ON THE SHOW: How to Handle Your Year End Bonus Episode 27: How We Handle Money in Our Household Episode 39: How We Handle Business Finances in Our Marriage Synchrony Bank Ally