I know, I know, a raise in this day and age?  Many people feel lucky to still have their jobs.  However, some people will still change jobs for more money and will still get promotions with raises attached.

So what would I do with an increase in pay?  I have give it a great deal of thought.  In the past, I followed what I called a "One Third's Approach"-- one third to debt, one third to savings and investment, and one third to splurge.  After careful contemplation, I am now in a different camp . . .

Here is what I would do now:

• 40% Debt/liability reduction
• 30% Emergency fund
• 20% Long-term investments
• 10% Splurge

After the debts and liabilities were satisfied, I would shift to the following:

• 60% Emergency fund
• 30% Long-term investments
• 10% Splurge

Finally, after the emergency fund was realistically funded I would shift to my final breakdown:

• 80% Long-term investments
• 20% Splurge

What would you do?

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