1. "If I got a huge surge in salary, I would purchase health insurance for me and my husband."

Without health insurance, big medical bills could quickly eat up your savings and jeopardize the rest of your financial plans. In fact, one of the most common causes of bankruptcy is medical expenses.

One good way to keep health insurance costs down, especially if your employer doesn't provide coverage, is to buy a high-deductible health insurance policy. Raising the deductible will cut your premiums and enable you to open a health savings account (HSA), which can give you triple tax benefits and allows you to roll over the money year to year.

To be HSA-eligible, your health insurance policy's deductible must be at least $1,100 for individual coverage or $2,200 for families in 2007. You can then contribute up to $2,850 for individual coverage or $5,650 for families in 2007. Those 55 and older can contribute an extra $800. Your contributions are tax-deductible and grow tax-deferred and then can be used tax-free for medical expenses in any year. If you still have cash in the account at age 65, you can use it for anything without penalty.

2. "I wouldn't do any of the listed choices. I would continue to pay bills off as much as possible. I'm very much in debt and am anxious to get out of this financial pitfall."

With high interest rates and a big balance, it's easy to pay thousands of dollars in credit-card interest that gets you nothing in return. If you have $4,000 in credit-card debt with an 18 percent interest rate, you can save more than $5,600 by paying the full balance now rather than continuing to pay the minimum.

3. "I would bank the difference into my retirement savings and continue to live on my earnings prior to the surge in my salary."

With a raise or bonus, you're not used to having the extra money, so you can put it to good use before you even realize it's there. First, invest at least enough in your 401k to get your full employer match, which is free money. It's tough to beat a 100 percent return. Since 401k contributions are deducted from your income before taxes, your contributions don't lower your paycheck nearly as much as you'd expect. If you're in the 25 percent tax bracket and contribute $500 to your 401k every month, for example, your paycheck will only shrink by $375. Most people can contribute up to $15,500 to a 401k in 2007 or $20,500 if 50 or older. The money grows tax-deferred until you withdraw it in retirement (you'll pay a penalty for withdrawals before age 59 ½).

Or invest the money in a Roth IRA, which doesn't lower your tax bill now but provides tax-free money in retirement. You'll be able to contribute the full $4,000 to a Roth IRA in 2007 (or up to $5,000 if 50 or older) if your adjusted gross income is less than $99,000 if single or $156,000 if married filing jointly. You can contribute part of that amount if your income is below $114,000 if single; $166,000 if married. Contributing $333.33 per month adds up to the $4,000 maximum by the end of the year.

And you have until April 15, 2007, to make your 2006 contribution to a Roth IRA. The maximum contribution is $4,000, and the 2006 income limits are $110,000 for single tax filers and $160,000 for joint filers.

4. "After a four-month unemployed stint, replenishment of spent monies is the first thing on my mind. I might spend a small amount on a wardrobe or improvements, but all in all, it's ending up in my savings."

It's a good idea to keep enough money to cover three to six months of living expenses in a fairly liquid, high interest-bearing account -- like an online savings account or money-market account -- so it can earn some interest and be withdrawn without penalty but isn't too easy to access.

5. "I would put it towards my daughter's education."

A raise or bonus can provide extra cash to put toward college savings without having to cut back on your own retirement fund. The easiest way to save for college is by opening a 529 plan, which provides tax-free money for college. You can use the money for any US college, no matter which state's plan you use, and can deduct your contributions from state income taxes in about half the states.

6. "I would spend the money on a down payment on a new home."

Making a 20 percent down payment when you buy a house can help you avoid private mortgage insurance, which can cost 0.5 percent to 1 percent of the loan value every year, meaning up to $3,000 per year on a $300,000 loan. The bigger down payment also helps lower your monthly payments, giving you more flexibility if you end up losing your job or want to cut back on your work hours. And you'll be less likely to have to cough up extra money if you sell in a down market.

Several readers also recommended using the extra money for home improvements, which can be a good way to add value to your home without taking on extra debt.

7. "I would spend the money on vacation!"

Of course, you can have some fun with the money too. But making some smart moves first can free up more cash for everything else -- and give you even more money for a splurge.

that's very nice of you ah.

have you ever gone out for a nice dinner to celebrate the hard work for 2006?