Promotion and Raise!

OK first post, but let’s just dive right in. I just got promoted and with it received a raise. Excellent news yes, but now the question arises as to how to allocate the additional income coming from my raise. Part of this money has to go into my 401k. That’s right, even though I am aspiring to great wealth, I am not even currently maxing out the $15k allowable in a 401k. Sad, yes it is, but my current situation simply does not allow for it. For private reasons, I’m building up my liquid capital. I am, of course, putting enough $ into my 401k to get the company match. That’s free money. You’ve got to be doing that. But, now I have this additional windfall. I think some would argue to put all of the incremental income into my 401k, and that would be fine and probably the right thing to do if I didn’t have this temporary additional need for liquidity. Based on my personal situation I’ve decided to dedicate half of the incremental income per paycheck to my 401k and have the rest simply direct deposit into my checking account which I’ll promptly move over to ING savings account. My question is whether there is anything else I should be considering and whether a general personal finance rule exists around the most rational behavior. Your comments are appreciated.

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