What would you do with an extra $1,100?

Did this title grab your attention? I hope so. If the company you work for is like most companies, this is the time of year that you get a raise in your paycheck.

According to the Bureau of Labor Statistics and Bureau of Census the mean income of all workers in the US is #35,500 per year. When I take this mean income and apply a cost of living increase of 3% it equals roughly $1,100.

No matter what your raise is in 2007, what is your plan for that increase. I can tell you this, if you don't have have a plan on what to do with it, your raise will disappear within three months and you won't know where it went.

Here are a few things I consider before I get a raise.

1. Take the increase in my pay and have it go right into my retirement plan. (Pretax)
2. Take the increase and put it into my Flexible Spending Account. (Pretax)
3. Increase my giving by that amount. (Eternal Investment)
4. Take the increase and have it automatically deducted by by bank into a savings account. (Peace of Mind)

As for me, I need to pay for those braces so I'm upping my Flex Spending Account in 2007.