Dear Pete,
Based on your emergency fund recommendation of 3 months, I now have enough to cover more than 3 months of expenses. I have no debt other than my mortgage, all my credit cards and my car have been paid off. What I need to know is where I should start putting my extra income. Do I save it to my savings account so I can make a bigger down payment on my next place? Or do I send it to my mortgage company to pay down the principle? I know savings accounts don’t make much in interest, but my mortgage is under 4%. I can share more numbers if needed.
Tom
Tom, it’s time to become an investor. Actually before we get there, you should be shoveling money into your retirement account. Are you maxing out your retirement accounts? If not, start working toward this goal.
You are also at the level where you should considering getting a financial advisor. Or if you’d prefer, a robo advisor could work as well. What you are aiming for is having your money work for you. Ideally, you’re looking to beat your 4% mortgage in the market. Leaving your money in a savings account is super conservative, in order to make your money work for you, you’ll have to get out of your comfort zone a bit. I get that this can be scary, which is why a relationship with a physical advisor or a robo advisor can come in handy.
It’s time to step up your financial game, Tom.

Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.