[Cornhusker]

What would you do with it?
I find myself in the possible position of being debt free in the very near future, and I'll be done paying child support in October.
The combined freed up money would be between $1300 and $1400 a month.
Now that might not seem like a lot to some people, but to me it's a good bit of money. LOL
What would you do with a little extra money? :shrug:

 

[WindowOrMirror]

Bank, bank, bank... buy land, bank, bank, bank, charity, bank, bank, bank

 

[ldc]

Well, that amount is more than i earn per month...I think I'd run wild a bit! ldc

 

[newfieannie]

I think it's a lot of money to most people here and more than some people earn in a month! I'd probably buy more food with it. ...Georgia.

 

[WendyW.]

Yeah, would double our income. I wouldn't have to worry over every penny that's for sure. At least half of it would go into savings.

 

[Michael W. Smith]

Well, since this has been a long-term "bill" that you have had to pay for a while, why not continue to treat it as a bill? Each month take your former child support money and put half of it in the bank in savings or a money market account, and invest the other half for longer term - perhaps for retirement purposes?

Money has a way that once you have more, you end up just spending more and don't really get ahead. Putting half of it in the bank in a savings account or money market account will let it be there IF you really need it. The other half would be good to invest in stocks or mutual funds for retirement purposes.

OR, you could just split that extra $1300.00 - $1400.00 among all of your friends here at Homesteadingtoday! So I can expect my first check to arrive sometime in October or November, right?!?

 

[DW]

I think a little treat for yourself is in order then SAVE. My husband & I knew some $ was coming and our total "treats" for ourselves were under $1,000. I'm not sure they would even qualify as treats. One was car maintenance, new boots for husband & I wanted a few small house things...the rest was saved.

 

[GoldCountryGal]

That is a nice sum of money each month! Good for you.

When I get a raise or a boost in income, my approach is to spend the first month's increase on something fun. A treat for myself. So if I am getting an extra $50 a month, then I can go spend $50 on something fun... new shoes, an evening out at the movies or whatever. For all the months after that, I have half the amount automatically invested, so that I never have to write a check or do anything, it just happens, the savings go on automatic. Most banks and investment firms can set up automatic investments.

 

[trixiwick]

I'm right there with Michael with the boring, unfun advice. Invest all but maybe $100/month for your retirement. I neevr understand where people think their retirement income is coming from, but they're nuts if they're banking on Social Security. If you're comfortable with stocks, put maybe half of it into mutual funds and split the rest between CDs and a nice high-interest savings account. If you're not comfortable with stocks, put most into CDs and maybe 20% into savings.

You can still do something fun with an extra $100/month, can't you?

 

[simplefarmgirl]

that is alot of money for us also,It would mean dh wouldnt have to drive truck for someone else and we could more energy into our own business and farm

 

[turtlehead]

I'd pay down the mortgage
Doesn't help you much, does it?

I wouldn't invest in the bank. I'd invest in tools, fencing, etc. Get the place in tip-top self sustaining shape. Then invest in savings of some sort.

 

[cider]

Savings! For a couple years and then spend some.
I would save, save, save!!!

 

[Guest]

[deleted by mod]

Seriously, have fun with some of the money. Remember that just because the child is 18 he/she doesn't need a loan every once in a while. Bank some, play some and give some.

 

[Cornhusker]

I was thinking along the lines of savings, but I also want to do some work on the house.
This house has linoleum that's over 50 years old, so I'm thinking one of those floating wood floors.
The windows are in horrible shape, so new windows would be nice, and it'd save on propane.
Basically just get the house in shape.
Maybe a little fun stuff, but I agree savings is the most important.

 

[QuiltingLady2]

I'd pay off credit card bills, if I had any. Followed by paying down the house payment. Then when that was paid off I'd have 2800. per month to play with.

I'd buy some vacation property to retire to when I retire with H.

 

[moopups]

An extra $1,300.00 per month? $1,300.00 per month would be about a 35% increase over my currant pension.

 

[Terri]

That sure seems like a lot!

After paying off a car, we now have an extra $150. The house needs repairs, but I am also ordering a building from Tuff Sheds for potting, a little storage, and chickens. I will have them put in extra windows and such for better ventilation. The payments will be perhaps $70 a month, and you have $1300????? WOW!

If it were me, I would probably save it for a year or two and have a bridge put in across the creek to make it easy to reach the back of the property.

 

[wdchuck]

A rule my dad always brought up was 2/3 in the bank, 1/3 to live on. If a person has no debt, then that may be possible. In your case, maybe saving/investing 2/3 , and budgeting your desires around the 1/3, you'll get to see tangible improvements in both areas in a timely manner, and be able to increase the percentage to savings when done.

Myself, I'd give a portion of the first 1/3 to someone less fortunate, and go from there.

 

[newfieannie]

I was thinking along the lines of savings, but I also want to do some work on the house.
This house has linoleum that's over 50 years old, so I'm thinking one of those floating wood floors.
The windows are in horrible shape, so new windows would be nice, and it'd save on propane.
Basically just get the house in shape.
Maybe a little fun stuff, but I agree savings is the most important.

Well that's different! For some reason I thought you might be living in a McMansion with everything done. I'd be fixing up that floor and putting in windows. there wouldn't be much left of the 1300 dollars. one of my windows cost 600 and that was only a medium size. ...Georgia.

Oh, I see that's 1300 a month. not a one time thing. well, you wouldn't be long gettin the house in shape doing a little every month.

 

[Reptyle]

I was thinking along the lines of savings, but I also want to do some work on the house.
This house has linoleum that's over 50 years old, so I'm thinking one of those floating wood floors.
The windows are in horrible shape, so new windows would be nice, and it'd save on propane.
Basically just get the house in shape.
Maybe a little fun stuff, but I agree savings is the most important.

Contact a financial advisor and do some of your own research on all types of investments...If the savings you place your money in isn't paying much, then you're still losing money because of inflation. Look into a few cheap dollar-cost averaging plans to save up for your eventual retirement, use some to make improvements on the house and don't forget to have some fun too...