What would you do with extra income?

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extra income wallet male



Having extra income isn’t something most people complain about having, quite the opposite. When you do have extra income even if all of your debts are paid you want to do something with the money but it’s not always a cut and dry decision.

As you might already know we are now mortgage and debt free as of last month. I had a fan email me to ask me what we plan to do with the extra income that we will now have since all we have are home maintenance and bills to pay.

I half expected someone to ask me that especially once I continue to post our budget and net worth updates with our savings account growing. Fan questions always tend to force me to think a bit more about topics I tend to put on the back burner although this is a topic which my wife and I really need to talk more about.


Extra income


Since the fan sent me the question I asked my wife to sit down with me and make a list of all the things she would like to do with the extra income we will have every month now. Keep in mind I’m also working a second job and not because I need extra income on top of what we already have but because it’s a foot in the door to my dream job.

Sometimes you have to make sacrifices to get where you want to be in life. Our life consists of having me work long hours at two jobs, although one is just seasonal so I won’t be working all summer. I’ve come up with money-making ideas in the past if you wanted extra income and one fan came straight out and said earning extra income was not a matter of question because he had to do it just to pay the bills.

I know that he’s not alone and many people are struggling just to get by but if you have to take on side jobs to make extra money the best way to go about it is to research what you love and take what you can while you can. I know it’s not the ideal thing to do but when your livelihood depends on that extra income it’s hard to be picky.

Thankfully my wife and I don’t have to work an extra job to make ends meet. I’m not sure if other people who are debt free struggle with what to do with their extra income each month but it seems to be a fair task for us that we aren’t taking lightly. We don’t want to make mistakes but we also want to enjoy our life as well.

I wrote a post the other day about whether we could see ourselves retired and one of thing that hit me when writing it was what if our health deteriorates? You never know what lurks down the retired path and although you want the best retirement gig around sometimes that doesn’t happen as planned.

After pondering much of that blog post and the fan question I wanted to start planning what we would do with our extra income so we weren’t going by the seat of our pants.

I didn’t want to see us walk blindly into everything that came our way nor did I want us to take on the mentality that we could spend what we wanted when we wanted to. That’s just a recipe for financial disaster and one that many people find themselves in because they think that just because they are debt-free they have reached the finish line.

Sadly, that is not the case so making decisions based on what you want today with your extra income and what you want for your future are two different plans.

Since we are still young we do have an advantage where we can splurge a bit but we still need to be cautious. We aren’t giving up the budget nor are we splashing out on toys we don’t need. ( OK maybe on a couple but it’s all going to be planned expenses)

What we do want to do is kick back a bit and soak up what we worked so hard for. It’s a far cry from reaching a million dollars in net worth like my mate the Frugal Trader at such a young age. The best part is they didn’t do anything more spectacular with their money except invest it wisely and pay down the debt they owed.

Truth be told there is no magical recipe for success except the hard work you put into it. I’ve contemplated turning our journey into a number journey and a million dollars doesn’t seem like such a bad target number to strive for.

I know many of you reading this today could only dream of being mortgage and debt free as a few of you have mentioned but you can so don’t shut the door on your dreams by giving up either. You might not get it done by the age you want but if you act now by taking your finances to the next level you might get where you want to be a year or two or ten earlier.

I love debt success stories and in a way we’ve been able to share our debt success journey with all of you. We are far from reaching our financial goals but in the meantime the extra income we have will fund the path towards those goals.

Having the chance to spend an hour chatting about what we will do with our extra income we came up with a few topics below that I will expand on briefly. With the end of the month just around the corner and another net worth and budget update looming I wanted to get this out-of-the-way so we knew where we were headed, or at least have an idea.




Updating the house is a priority for us and it was the first topic that came to mind in our discussion. My wife offered to hire people to start the process but I assured her that I’d get to it. I know I’m working lots of hours now and don’t worry I’m sleeping as much as I can, keeping fit and eating well but I’ll do the renos myself.

Calling in the professionals for stuff I can’t do is going to be a high priority for me but for what I can do I’ll do it on my own and save money. I guess it’s using extra income to complete the job yet saving extra income by doing it myself.




I’ve talked about investing more money into our retirement funds mainly our RRSP and TFSA which is certainly something we plan to do. We also talked about saving enough money to put down on a rental unit. We would like to be landlords since this is something both of our parents have done.

My parents are still landlords and although it comes with its ups and downs we are willing to take the risk. I’d like to see a second home paid for in full so the extra income from the rental money goes in our pockets to maintain the house and give us more extra income.




We both love to travel and although we haven’t travelled much since I moved to Canada it’s certainly something on our to-do list now that we are debt free. We haven’t made any concrete plans yet but we will be heading back to the UK in the upcoming year or so as well as travel around Europe a bit. (at least that’s the plan)

Not having had the opportunity to travel around Canada as much as I’d like to we would both like to venture out to see what our beautiful country has to offerl. My parents may be coming over to Canada to do the same now that they are retired, well semi-retired since they work on the side for extra income house sitting.


Start a family


As you already know we have no kids so we would like to add to the CBB house by having a child or two. I’m sure we will learn lots from the fans along the way and the extra income we thought we had will be spent in this category although frugal is always frugal.

We have followed along the best of the best parenting websites to find ways to keep costs low when having kids but the reality is they cost money. I don’t want money to get in the way of this category but now that we have the extra income a new bundle would certainly make us happy.


Buy some toys


I won’t say that I don’t want to buy a few toys because I do, what man or woman doesn’t? I’d like to get a power washer and maybe some accessories for the garage to jazz it up a bit. I’ve always wanted to finish the garage and epoxy the garage floor.

I’d also have to add in some cabinets, tool boxes and counter-tops that way my messy organized to me garage won’t look so bad. Sometimes I wish I had a triple garage for all the room I require in there but a double garage is more than I ever dreamed of owning. My house in the UK didn’t have a garage at all.

I don’t think this is a category where you will see us spend a fortune but we will likely look into picking up some fun toys that we’ve always wanted but never had the money to buy. All expenses kept in moderation of course.


Start a business


Although real online jobs do exist and you can make extra money blogging it’s not my first passion for starting a business. My mate Pauline from Make Money Your Way and Reach Financial Independence was talking about why she will never be a successful blogger and I reminded her that it’s not always money that makes you successful.

If you’ve followed her journey you’ll know that she is a smart business woman and will go far with what she has accomplished even if her blogging income isn’t making her millions.

Some bloggers go the whole hog when it comes to monetizing their blogs but like myself the money I make goes to keep the blog running and I’m not retiring any time soon from blog cash overflow. That’s my choice but other bloggers are very successful and the ones that are put full-time efforts into making money and they have side-hustles as well. An example would be my IT guy Grayson from Debt RoundUp helps bloggers maintain their blog while he owns a few of his own blogs. He uses his skills to make extra money and that is now part of his business income.

We talked about starting a bricks and mortar business such as a pizzeria (don’t laugh) because we both love food. We also love pizza and local pizza joints with authentic pizzas seem to be around for years and years. They must be doing something right. Although we know starting a business would mean more hours on top of what we already have we haven’t ruled it out yet.




One thing we haven’t done much of is donate money to various charities. We certainly will be looking at ways we can give back to the community and organizations that need monetary help. The benefit here won’t make us rich but it certainly will make us feel better that we are making a difference.

Not everyone has an easy time spending money especially if it’s extra money. Some of us are worried that we might go overboard by jumping in too soon but I think that as long as we have an idea of what we want it’s better than doing nothing at all.

What would you do with extra income?



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  1. CCB go west and north young people…

    Hop on an airplane to visit British Columbia: Prince George to Prince Rupert has non stop, breath taking , spectacular, knock the sandals from your toes scenery. ( also, research ” Hyder Alaska” )

    There is a vehicle and passenger ferry from Prince Rupert to Port Hardy .
    If time permits, slowly explore Vancouver Island communities and visit a couple of the Gulf Islands.

    If you are a member of CAA, enquire to obtain hardcopy maps, accomodation guides, etc. for the different areas of BC .

    The time and financial investment will last a lifetime.

  2. A high interest bearing TFSA would be a great idea. Here are the benefits: 1) Put a tidy some of money into the plan and you will make some good interest…tax free 2) You can remove the money at any time without penalty to use for your renovations, travelling etc. 3) You will end up with more money than you invested due to the interest..

    A TFSA will give you time to think about your options and will grow your capital while you ponder your decisions.

  3. I think when we get to the point in our lives where we actually have extra money, we will donate some of it while the rest will be put into savings. We have a while to go to get to this point.

  4. Thank you for the mention Mr. CBB! I donate part of my blog income to education projects in my village in Guatemala and pay for kids to go to school, have supplies or learn how to use a computer. It is a great way to give back. You have a really good problem to have, I would look more into investing if I were in your situation as well, in order to grow that money, I don’t like having much cash around.

  5. Awesome read! I also plan on being mortgage free within the next few years! The count-down is on and I can really relate to your article. Enjoy yourselves and your new purchases!!! I cannot wait!

  6. At this point I think any extra money over and above what is needed to pay the bills would go to pay down the mortgage as quickly as possible. That would be the number one priority. Number two would be to save up for a new to us vehicle.
    I think your idea of doing the renovations yourself is fine as long as you know what your are doing and you do, for the most part. Hiring out what you can’t do yourself is smart too. Having the extra funds available means that you can afford to hire the best possible help for those things that need it without worrying about how to pay for it or trying to do it yourself and getting in over your head.
    Your other ideas like investing and travel sounds good too. Having little CBB’s will cost, but if you are careful and start picking up things early, and on sale it will help. I had a good number of small things like clothes before I was even pregnant as I was watching the sales. I also do a lot of sewing, crochet and other crafty things so things were made and put away until needed.having funds set aside for the Mrs to go on mat leave will help there too, especially if you are planning for her to be a stay at home mom for a few years. This is a thought to consider as daycare costs can seriously blow your mind!!!!!! If you want to travel small children are very portable, and things like diapers can be found on sale anywhere.
    It sounds like you have some good ideas to think about and I’m sure you will make good decisions that will work for you…

    1. I like the thought of little CBB’s. Yes my wife will stay home if we have any kids as she is able to do that with her occupation. I guess only time will tell what the future holds for us. What would you do though IF you had 0 debt meaning no mortgage and owe nothing to anyone but your monthly bills?

      1. I think I would be saving for the new to me vehicle and talking to my SIL’s hubby as he is a mechanic and would be able to advise me and help find a good vehicle at a good price. It would be nice to relax and not worry so much about money but I’d be socking money away in a TFSA and one of those accounts (can’t think of what they are called right now!!) like an RRSP but for disabled people for the older boy to help look after him later on. I’m old enough that an RRSP for me isn’t the thing to do ,therefor the TFSA. Maxed out if possible. See what I could do to help the younger boy and our daughter out financially and maybe put some money in the grandson’s RESP….

  7. First, thank you for the shoutout Mr. CBB! I appreciate your support. Second, when I make extra income, it usually goes into my savings. I did use a good portion of my extra income for our home down payment, but now it is all for savings.

  8. Once we paid off our mortgage and our children became independent, we decided to purchase some things for us to enjoy our time doing the things we love. We bought a 5th wheel trailer and hitch and 2 snowmobiles. We wanted to purchase them while we were still actively employed FT. Also we pay extra into our retirement plans and TSFAs. Might seem extravagant to some but when the kids were young and we had a mortgage we were on a very tight budget and couldn’t participate in the activities that we both adore. Our holidays were usually staycations and there were no extras. Now we can start rewarding ourselves for all the hard work in the past.

  9. Ah! Sometimes I indulge in fantasizing about what we would do with “extra” money. We are still far from paying off our $185k in student loans, so naturally a lot of it gets set aside for that. But our son starts kindergarten next year, so we are also thinking of sinking ourselves into more debt so we can buy a house in a great school district. Not exactly something a personal finance blogger can be proud of, but hey — these days, it’s where we would spend a windfall.

  10. The DH and I are also in this position with a surplus of income as we don’t have any debt. It’s a good position to be in after having been in debt so congratulations to you and your wife. We don’t have a mortgage as we currently are renting but we are contemplating a rental property purchase. We use my income to pay our expenses and my DH’s income to save/invest. Every month we sit together to discuss how to deal with the surplus.

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