Got a Raise This Year? 4 Ways to Make the Most of It

Raises at work certainly aren't a given. But if you've been fortunate enough to snag one so that your 2020 paychecks are starting off higher than they used to be, then it pays to put that extra cash to good use. Here's how.

Last year, the Federal Reserve Board found that 39% of Americans don't have the cash reserves available to cover an unplanned $400 expense. That's troubling on many levels.

If you don't have a complete emergency fund -- one with enough money to cover three to six months of essential living expenses -- then it's imperative that you build that cushion before the next unanticipated bill pops up. The good news? If you're getting extra money in your paychecks, you have an instant source of funding for your emergency savings, so take that additional cash and put it directly into the bank. Better yet, automate the process so that extra money filters right from your checking account into your savings account.

Source Fool.com