Are you just starting out in your career? If so, you will face some financial challenges, but you also might encounter some pleasant choices – such as what to do with extra disposable income. So, when you get a bonus or tax refund, should you pay off debts or invest for your future?

In thinking about debts, consider whether they are “good” or “bad.” A “good” debt might be your mortgage, which provides deductible interest payments. A “bad” debt could be a nondeductible, high-rate consumer loan – and this is the type of debt you might want to pay off first.

Of course, with extra money, you may be tempted to make extra mortgage payments because it just feels like you’re doing something positive. Yet, your house is somewhat illiquid – it’s hard to get money out of it. You might want to consider putting extra money into investments such as stocks and bonds, which offer you greater liquidity, plus the potential for long-term growth and current income.

Whatever you decide, use your extra money wisely; you weren’t necessarily counting on it, but you can make it count for you. 

This is Chris Cripe, your Edward Jones financial advisor located at 124 North Dixon Road, in the Dixon Square Plaza. (765) 452-2392.  

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.   

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