Well, I had a nice surprise in my savings account this morning--an extra $600 that was not there yesterday afternoon. Yes, the federal government decided to give me money to spend. As a single taxpayer, I was eligible to receive $600 and the full amount was deposited into my savings account. So, what will I do with this money?
The current setup in my T. Rowe Price Roth IRA account is all my shares are in the Extended Equity Market Index fund (PEXMEX). This is a nice fund for me to invest in, but I am exposed only to domestic funds. Therefore, I decided with $500 of the extra money I received, I would begin investing in the International Equity Index fund (PIEQX) as well. My portfolio would then have international and domestic stock fund exposure, giving me more diversity in my investments. Since I am also increasing my Roth IRA contributions, I can divide the monthly contributions between the two funds with a small decrease in the contribution to the Extended Equity Market Index fund. I am very excited about this change and thrilled to be getting closer to fully funding my Roth IRA for 2008.
With my replacement car fund receiving more money each month and my determination to send as much extra money as I can to increase my numbers, I chose to add another $50 to this account from the economic stimulus check. I will likely have two or three years before I have to replace my 11-year-old car, but I am trying to save as much as I can if circumstances change. Retirement account funding was my first priority with this extra money, but the auto savings account reminded me I needed to give it a boost as well.
Finally, I am allowing myself to spend the remaining $50 as I choose. Purchases I am considering: getting my feather pillows restuffed or using the money to host a party at my home. I have not done the latter in a while and it would be fun to gather my friends together and enjoy the outdoors now that spring is really here. The $50 also leaves me room to be more spontaneous that my monthly budgeting does not really allow me.
Have you gotten your money electronically and how are you planning on using it?