That, in my opinion, depends on what else is going on in your life. If you have any high interest debt - I'd pay that off first. Then, any other debt you have could be reduced or eliminated. In today's world where savings accounts at banks are paying less than 1% on average, you can get a bigger bang for your buck with debt paydown than just about anything else. If you don't have debt.....I'd use a savings account (check depositaccounts.com for competitive rates) to build up ~6 months of expenses. From there.....you can think long term investing.
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