I was fortunate to have receivd a 25K Christmas Bonus, and would like to seek some advice as to how it should be applied. So, below is a brief recap of our financial situation:

• We have about 10K in credit card debt that we will pay off immediately.
• We have a property tax installment of 2500 that needs to be paid. And we will have another due in April.
• We have approx 10K in other debts that we plan on consolidating into a loan in my wifes name (currently has $300 a month coming directloy out of paycheck that we won't miss) and that will cover that loan.
• We have been living essentially paycheck to paycheck, but with the credit card payments being cleared up we should be able to start putting away about 300 per month (maybe more).

Essentially we will have about 10K left after paying off debt and property taxes, and I would like suggestions as to how we should apply that money. My intial thought is to max out an IRA for myself with 5K and put the remainder into a high-yield savings account that I already have set up...this account would be the start of our eventual 3-6 month reserve savings.

None of these plans are set in stone, so I would be very thankful for any suggestions that anybody might have. We have been vry fortunate to receive this bonus and I look forward to using it as the jumping off point for our new financial freedom.

Thanks in advance for any suggestions!

Pay off all of your unsecured debt first and foremost.

Than buy a rental property to hold on to long term. There are plenty of good deals out there right now and if purchased right can make you money every month and help build long term wealth.

I think you have this nailed already, with a good, conservative plan to eliminate debt and establishing an emergency savings fund.

Real Estate is a good investment, but you need the stomach for being a land-lord, or have enough cash-flow to hire a management company. You probably will have trouble making that happen with the money you have, even in these times of falling prices and low vacancies. Can be a great investment if you do it right.

Another option is an IRA for your wife, assuming you are married, FamilyGuy. But you'll need access to emergency funds through alternate means - credit cards or home equity credit, or somewhere else. In this scenario, you'd start building your cash emergency fund from scratch.

Congrats on the big bonus, you make us jealous!