Opinions ....windfall

[ml2620]

In the past two months, I received a small raise, lowered my contributions to my 401K and refinanced our house. Yeah!

So, I now have that month where you don't have to make a mortgage payment ($2,300) and a refund on the accrued taxes from the mortgage payment ($1,500). It is burning a whole in my pocket and I am not sure what to do with the money.

I should preface this to say, my husband and I keep our money separate, and the house and mortgage is in my name, at the advice of his accountant and attorney. He owes over $100K in back taxes (from before we were married), and we are negotiating a resolution on that. It's money associated with his business, which is doing very poorly these days to begin with.

In short, the agreement between us is my salary supports and runs the household and keeps us afloat, and what little money he makes these days goes to the business (which is currently in the hole, it's a moving company. Down economy = not many moves).

We have no personal debt, no car payments and no credit card payments (finally!), "just" the $320K mortgage in my name and the $100K+ owed to the IRS. So unless I choose to put this money towards my husband's business debt, it's the start of our emergency fund.

I know Dave says you share your money, but I think he would take exception in my case.

Anyway, $3,800 "windfall"

$900 - paid off last credit card!
$1,000 to fund EF
$600 - pay accountant to tax prep

So, I have $1300 windfall. Should I:

1) Spend some:
a) Trees to start an orchard in our pasture ($500 tops)
b) Some appropriate work clothes - my suits don't button up
anymore
c) Use the rest to start a stockpile for DH's off season
d) Prepay the oil guy for the cold season at 5% discount.

2) Save it in the EF
(Waiting for our $7600 tax return to come back, that will give us a good lift on the EF).

3) Put it toward some of my husband's business debt
a) Attorney fees - $2700
b) Insurance for Business - $4,000 would pay off all sources of
insurance
c) Purchase of new software for business - $3,000
d) I really could go on and on about what this business owes
and needs these days....

How would you spend my $1300 windfall?

[Contrary Housewife]

Personally I would go with work clothes, stockpile, and EF. I don't know about your husband's business, but it sounds like any money spent there is just going to go down a black hole.

[kellieetter]

I agree I would get yourself a few nice pieces of clothes that can be made into a few outfits and then throw some into the EF and stockpiling.

[frugal.lass]

I agree with the other posters...work clothes, start stockpile and start EF. It just seems to me that if you pay down some of DH's debt, it won't do much there and it will seem like money that you've "lost".

[mommy4ever]

Stockpile, oil(supposedly going up again in the fall, get it while it's cheap!) work clothes, EF.

The business is suffering, yes, and right now it won't do any good to sink more into it from the family income. Can he diversify and use his truck to do other things too? Not sure what kind of truck he has, but try brainstorming as to what more he can do with the business, diversify.

Good luck!

[dcompton]

I think your entire spending list looks good, and reasonable. I wouldn't spend $500 on the trees (I have no idea what they cost since I've never had to buy any) but if you are sure you are staying there, that's an investment in the future. Trees take time. Could you get the oil, and earmark that 5% discount, whatever it is, for an orchard fund?

You do need work clothes, and stockpiling is important. I would set some of the money aside to use when you can buy most effectively with the sales.

Do you expect the refund soon? That could be used to beef up the EF since you have just put $1000 in it from the total amount.

[Thevail]

I'd definitely get the oil at the 5% discount. You're going to have to pay for it eventually anyway, so why not get it on "sale".

Then I'd hit upscale consignment shops (honestly work suits go for a song at those places compared to their "store" pricing) for some nice work clothes, even if you need to go to a nearby larger town to do so. Make it an "I was financially good!" celebration.

Then I'd stockpile stuff you'll need no matter what. Laundry supplies, soap, shampoo, razors, TP, Dish washing supplies. Try to find what you want on killer sale and buy half a dozen. None of it goes bad for years and most of us save an easy $20/week if you can just skip those aisles in the store entirely.

Alternately, if you have a small niggling bill (for me it's garbage@ $37 month) why not pay for a whole year in advance. It's nice to free up cash flow each and every month for a year.

[mamamia]

I would do the oil, stock pile, then divide what's left between the new clothes first, then the trees.

Like what was said, you have to buy oil anyway. If you can get any kind of discount, take it. It'll be one less worry during the winter for you, ESPECIALLY if your dh's business goes further down.

The stockpile for the same reason.

You have to look nice for work. The consignment shops and thrift shops might be your best bet. Around here, we have one in Orlando with "high end" merchandise. Look around.

I agree that the trees are a good investment, even if you have to start with just a few.

Putting the money out for DH's bills really will seem to be "lost" because it's hardly gonna make a dent. Take care of the other things 1st, and it'll be way easier to pay that off. Let us know what you decide.

Hoping for the best!

Theresa

[Siebrie]

I don't know how it works in the US, but in the Netherlands, even if you are married with a prenup agreement regarding his business, as soon as you start mixing the home and the business budgets, the prenup is no longer valid. (I'm sure there are some ways around this, just make sure you do not jeopardize your home!)

[itlw8]

well you do not even have one month mortage payment in your EF so do not go wild spending... new work clothes are needed but a few can be made to work.. Do you wear suits in the summer? maybe a new blouse is all you need
You can start your orchard with just 2 trees and add more later then you family will be eating fresh fruit much earlier Gurneys has great sales on their trees and they may be bare root but very healthy

Then you need to stick it in the savings your car is paid off but are you saving to pay cash for the next one?

This sounds like a 1x thing so with no savings and cutting your retirement you really need to save it.

buying your oil in advance to me is like saving it. stockpile well that can be done a little at a time so no I would not spend a chunk of money on that.in an emergency can you pay your mortage with laundry detergent?

[ml2620]

Thanks everyone....my final decision was...:

$2000 into the Emergency Fund
$900 paid off credit card
$600 Accountant
$200 on two new, interchangeable suits, four blouses and a two cardigans bought at the consignment store (excellent suggestion!)
$100 bought a surprising number of trees, on sale at Sam's Club. Apple trees for $15 each (we bought 6, and bought ourselves ice cream cones with the remainder!)

I love planning the work and then working the plan. Thanks everyone for the great advice.

Next up....yardsale for more EF and winter heat oil fund.

[itlw8]

It sounds like you made some very wise choices It feels good doesn't it.

[Momof3girls]

I would buy a few work clothing pieces, a few trees for your orchard and tuck the rest away in a savings acct. for just you.