Question for the Money Doctors
Question submitted on Apr 11, 2011.
Question
What to do with severence pay? Invest, save, or pay down debt?Answer
Unfortunately this is one of those questions that is answered by "it depends". It really depends upon your personal circumstances. First, if you have high interest rate personal debt, I would pay that down. Then, I would create an emergency fund of 6 months of living expenses. Once you have taken care of personal debt and created an emergency fund, you can then look at investing the excess.
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