So my job allows me to do side contracting assuming there is no conflict of interest. So over the past 2 months, I have been doing contracting for a friend's client building an application. So now that this is all done and I have been paid I need to figure out what to do with my earnings.

So I got 55% of $23,000 ($12,650). I am currently earning about 50K a year at my current job. I am living at home with my parents while I am saving up for a house. I have no debt and no real expenses outside of my phone bill. My only investments are through my work's 401K plan where they match 5%.

So my question is: what is the best way to use this extra money? Put it in some kind of investment portfolio? Put it in savings?