<prompt> Human: My husband just had his annual review and starting next pay period, he will get a 7 increase in pay. We have a lot of debt and had to pull from his 401k with an emergency last year. My father recommended that we raise his input to his 401k with the full 7 and continue living as we have. Is that reasonable? Or should we try to pay back some debt,build our savings, and then work on 401? Any thoughts would be greatly appreciated, as weve made horrible financial decisions in the past.  <response>: Spend 0 of the pay raise and invest all of it, as you would with any windfall.Paying off high-interest debt, building up working capital, and buying a few properties would be my priorities. But its very important that you actually stick to that plan. Paying off a giant credit card loan wont improve your long term position if you follow it up with fresh credit card debt. I think your father is worried that the 401k may be the only safe place for your money. Perhaps you could set up some rigorous policies to make sure you can prove him wrong? 