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OK, we will be receiving a pretty good size amount of money from an aunt of my husband's that recently passed away. The question is, what to do with the money?

There are a lot of little projects we would like to do. We have also wanted to add another bedroom & bathroom on to the house. My dad & brothers would do all of the labor for free, so that would save us a fortune. My dad can do the wiring, plumping, everything, so nothing would need to be hired out. We just can't decide. I vote for the room as my dad is getting older & this is a one time opportunity to add on like we want & need. A 1 bathroom house with 9 people is not always pleasant!

What would you guys do? I say do this big project & do the smaller ones as we get the money later. Hubby just can't make up his mind.
 

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Big Front Porch advocate
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I vote for the extra room.
Easier to save for smaller projects later, than larger project later.

Angie
 

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Well, if we got it (depending on the amount) I would try to get debt free. Then those projects become much easier to save up for rather quickly. If you are one of the fortunate who is already there (I'm jealous) then definitely add the bath. 1 for 9 people. I would lose it!! And seeing as the labor force is there for you.....you bet........add a bath.
 

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I say add a room and bathroom your right it's easier to save for little things. And if you think you may have to do it any way one day do it while you have money.
 

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I agree...go for the bedroom & bath. The smaller projects will be easier to handle as money allows - much easier than coming up with money for the big project later.
 

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If you do, I would "owe no man any thing". If you don't owe anything, go for the room. Just for the record, we aren't debt free, we made a mistake, but our heart is in being debt free and are working toward that end.
 

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I vote for setting it aside and stewing the ideas over long and hard. If this is a rare opportunity you could make a rushed decision only to regret it later.

I also agree with the debt free or closer too. Those free labor jobs will be much sweeter paid with cash and no house payment!
 

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I have to agree with hintonlady. They say whenever you get a "windfall" whether it's an inheritance, winning the lottery, or whatever - the best thing to do at first is NOTHING!

Put the money in a safe place - money market account or like a 6 month CD and let it sit while you mull over your new found money and decide what you really want to do with it.

Besides, letting the money sit for a little while, will probably give you enough interest to do one of those smaller projects as well.
 

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I vote for setting it aside and stewing the ideas over long and hard. If this is a rare opportunity you could make a rushed decision only to regret it later.

I also agree with the debt free or closer too. Those free labor jobs will be much sweeter paid with cash and no house payment!
My thoughts exactly.
 

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I have to agree with hintonlady. They say whenever you get a "windfall" whether it's an inheritance, winning the lottery, or whatever - the best thing to do at first is NOTHING!

Put the money in a safe place - money market account or like a 6 month CD and let it sit while you mull over your new found money and decide what you really want to do with it.

Besides, letting the money sit for a little while, will probably give you enough interest to do one of those smaller projects as well.
yep. Once it's gone, it's gone. W-a-i-t... be sure... that way, you do not have any regret about how you spent it. Besides, I don't know what you guys do for income over there, but with the job market right now, if you don't have a sizable savings, or have debt, now would be a good time to handle those two things just in case.

Cindyc.
 

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Whenever I get a chunk of money, I try to "save" it. Convert it to another form of equity.

If you build the rooms on your house, chances are that your house's value will increase, thus building equity and "saving" your money.

I don't know what the smaller projects are, but chances are that they will not create any equity and thus "save" your money.

Just my personal economic theory.

Jena
 

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Hi Wendy…..dig a well and invest the rest in a 1-year CD….you’ve got along all these years with limited bedrooms and one bath…in a year or two the CD’s should have generated enough money in interest to put in a bath….
 

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On whether you are debt free. That would be a must for me, before adding on anything. Then yes, go for the room and bath. How many people can get labor, for free?????
 

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If you have debt, get rid of that first. Then make sure you've got savings that can take you through a rough period. Say, DH loses job or gets hurt. Then if you've got that done, then do the bath and bedroom.

If it's enough money, you might be able to do it all now. :)

Jennifer
 

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I agree with Jennifer. I would make sure that you have enough money saved up in case something unexpected happens, then payoff debt and then add the bath and bedroom.
 

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Invest it in your future by paying off debts or investing it. With the markets down now it's a great buying opportunity. Keep in mind if you pay off a debt, don't just squander your extra income or take on more debts with your newly freed up credit! That's just the same as wasting the money in the first place.
 

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Make sure that the amount of money is enough to cover all the expenses of the build-on, if that's what you decide to do.

If you happen to come up a few thousand dollars short, that will compound with debt. Also consider any added expenses for heating, taxes, insurance, etc.

Know the real cost before you take it on.
 

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I would do like most people have already said...

Get you a small emergency fund set aside ($1,000); then pay off all debt (if you have any); then set aside several months of expenses in case something happened and you needed the money to make it... then, if I had any leftover ;), I'd think about that addition.

The good thing about the addition is that you've got so much help already lined up so it could be very do-able for not so much money. That's awesome! :D

~Ashley
 
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