There is a hierarchy for financial security - sort of a pyramid where you build a foundation before working your way to the top ...

The foundation consists of:

1) Emergency fund
2) Full insurance: homeowners or renters, auto, medical / dental, life (if appropriate), and DISABILITY INSURANCE on the primary wage-earner - or both wage earners if both work. Some people also have umbrella liability insurance which is helpful as your assets grow.
3) Debt free except for mortgage. This includes paying off student loans or having your personal educational goals fully funded (ie: you're going to college and paying as you go.)
4) Full investment in 401k and IRA since we can now do both AND an IRA for the non-wage earning spouse.

The next level includes:

1) Long term personal investing: bonds, stocks, funds, etc. - money you won't touch for a long time, if ever. This is the beginning of accumulating 'critical mass' which is where you can live on just the interest and dividends that your savings generate.
2) Debt free - INCLUDING MORTGAGE
3) Regular charitable donations (which some people put on level one, which is okay, too.)

The next level includes:

1) Long term savings for family members, specifically children such as college savings or the beginning of their own 'critical mass' fund.
2) Enhanced charitable donations, possibly starting scholarship funds, grant programs, etc.

The top of the pyramid includes:

1) Living at critical mass (ie: not having to work)
2) Continuing with social programs that enhance the quality of life and society, etc.

Of course, as life happens, we have to keep re-visiting all levels of the pyramid, just to make sure our foundation isn't crumbling. It makes no sense to be a few thousand dollars away from critical mass only to suddenly incure a new mortgage for a second house or suffer a heart-attack only to find out our medical insurance didn't cover us adequately or our self-insurance fund was large enough.

__________________
"I've been rich and I've been poor but independently wealthy is where it is at."

Invest of course!
College 529s and savings for your kids, pay off mortgage, Travel, what are your dreams for your family? Do you want to take a nice vacation every year? Do you want something big like a boat or rv? Do you want to fully fund your kids college? What is important to you?!

__________________

A woman is like a teabag. You never know how strong she is until she gets into hot water.-Eleanor Roosevelt

I have a 5.22% CD for 12 months @ a credit union (they offer better interest rates) and usually stash extra $$ away whenever I can.
It's really nice to have something going

__________________
You must be the change you want to see in the world ~ Gandhi

I just want to add my two cents to all the good financial suggestions here.

I am just like you. It is difficult to spend money. To get out of debt and get a nest egg and emergency fund takes a lot of focus.

Congratulations! Now try to broaden your focus. Your responsibilities extend beyond financial security for your family. Other responsibilities may need some attention. Are there educational opportunities for your kids that could be considered? Is your home and family life perfect or needing tweaking? Relationships, civic opportunities and moral guidance sometimes take a back seat when making ends meet is primary.

A few extra dollars could be used in ways that will benefit you and your kids and your community.

Cathleen

with everyone. Especially love what Cookie had to say.

Don't ever feel like you can or should STOP saving. There are always things to save for, and there's no reason we should go out and spend money just because we can. Save for your retirement, kids' college, vacations, or early retirement even.

really a good thought