This month I saw an increase on my paycheck about $200 but next month will be full amount of raise $400 but little less after retirement saving around $300 per month take home. 

I didn't think I would ever find myself asking this but what the heck do I do with it?  All I can think of is more student loan payoff and saving/investing.

Any thoughts???

Congratulations!

If you can't decide between putting the money against your debt or saving it, maybe you can alternate between the two every month?

Don't celebrate, like I do, and spend it!

I would:

a)  Pretend I didn't get it

b)  Set up an automatic deposit into my savings account (50%)

c)  Set up an automatic debt payment!  (50%)

CONTRATULATIONS!

Avoid "lifestyle inflation"!  As you earn more, keep your spending the same.

I'd set up an auto-withdrawal from your account so the money go directly to your Roth IRA.  If you don't have one, then PERFECT!  Start one now with that money!

It's always a good time to get a jump on retirement savings.  If you spend the money, you need more (we all have to eat).  If you save the money, then you can be in charge of yourself (and we should all try to get there).

You may want to check with your bank and see if they have any special programs for automated savings deposits. I just got $150 for setting up a regular monthly transfer of $50 from my checking to my saving.  It was an easy way to earn $150 and a good incentive for me to start the auto savings program. 

Congratulations!

Boy Ted it sounds like you have a great bank;
I would pay down the debt.. The sooner the better. Then save, consider it just a few more months earlier to Debt Freedom day.

a)  Pretend I didn't get it
b)  Set up an automatic deposit into my savings account (50%)
c)  Set up an automatic debt payment!  (50%)

I have decided to go with cluttercutie's suggestion.  It was hard to realize I did not get th raise So, I used some of this months raise to pay for some upcoming necessities, and have made an increase to my student loan payment and the rest setup to go to ING for additional savings.  Contributing to Roth IRA is a great option too but I already had this maxed out so I think debt/saving was the best choice for my case.