Should I be doing something else with the $34k in my savings account?

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I would leave the $34k in the savings account in case of emergencies or house repairs. Personally I would stop contributing to it and instead increasing your contribution % of your 401k and IRA up to the max.


What is the interest rate on your mortgage? Anything less than 5% I’d pay off normally over time and invest the rest. Invest the extra in retirement. 12% is a somewhat low rate. I’d try aiming for 15% at least.


Assuming you’re an average American couple, $30k or so sounds about right to have as savings. You may need some unexpected repairs to home or cars, may need to go a while without income, etc. That should get you through a few months without trouble. If you’ve got extra money to spend at the end of the month, invest a good portion of it. Maxing out your 401(k) first is a good idea. After that, go into some standard brokerage things. Consider living a little, too. If you’re financially stable you don’t have to try to scrape away every last penny to help you retire a few months earlier. It’s fine to set aside $20 a week into a splurge fund for guilt-free spending.


I bonds. Liquid in 12 month. Penalty free after 60 (3 months interest forfeited before 60 mo). Inflation protected.


Make sure you’re not paying any PMI on your mortgage