I’m still trying to decide what I will do with the extra monthly and bonus cash flow once I’ve fully re-paid myself. I do, at this point, have almost a year to think about that and if I don’t come up with any great ideas, I will direct the money into an “other” savings account until I come up with a good idea. Some ideas that I am tossing around at the moment:
- Split the money up three ways into investments, pre-paying the mortgage, and saving for a 20% down payment on a house
- Split the money up 50/50 into investments and pre-paying the mortgage
- Split the money up 50/50 into pre-paying the mortgage and saving for a 20% down payment on a house
- Invest all of the money
- Use all of the money to pre-pay the mortgage and pay it off really quickly
Right now, I prefer the first option since it still allows the extra funds to be diverted back to mortgage pre-payments or investments at any point. The fifth option isn’t very flexible and the fourth option is the riskiest.