What would you do with the inheritance?

**tink** · 04-02-2008, 07:32 AM

We have come into almost $30,000 and I just wanted some input from you folks. We live in a manufactured home with a 9% interest rate, which would be almost paid off if the money was put towards that. I only have a few thousand on cc bills, at a really low interest rate, so I am not too worried about that. Our cars are either paid off or almost so. We have no other debt. Would you apply all the money to the house or do something else? (Like have the money available to persue another adoption?

)

**jamie79** · 04-02-2008, 07:56 AM

Yep thats a high interest rate so I would pay it off. Good for you.

**PrairieRose** · 04-02-2008, 08:30 AM

I'd put some in an EF but I can tell ya one thing, living in a paid for home sure feels good

.

**Lady_V** · 04-02-2008, 09:09 AM

Okay, I put myself in your position... after I got off the floor... I would split the money...

$10,000 towards an EF
$10,000 towards the CC's and cars
$10,000 towards the house

If there isn't $10,000 in cc & car debt, I would take the difference and put it on the house.

I just know that if I was able to make the payments now, any windfall is a 'bonus'. Pay off the 'small pebble' debts and once they are gone, paying off the mountain will be easier.

Having an EF is always a good thing! You may not need it, but then again you may... and when you do, you are glad it's there.

**Jayne** · 04-02-2008, 09:38 AM

If I were you I would pay down the house..

**nodmicks** · 04-02-2008, 09:42 AM

I'd get at least a 3 month EF if you don't have one and apply the rest to debt.

**forHISglory** · 04-02-2008, 10:22 AM

Pay down the house. That's a high interest rate. You will actually end up saving money by paying it early (unless there's a clause forbidding it). Then use the monthly payments that you WOULD have been making and use it to stock your EF.

**frugalfoster** · 04-02-2008, 11:05 AM

I try to look at it in this manner. What would the person who left it to me want me to do with it? I think inheritance should be handled with a true respect . When my parents left me a small inheritance, I used it to buy some property in the mountains and started building the "cabin" of our dreams. Everytime I walk through the door of the place, I give a silent thanks to my parents because if it had not been for them, I would not have it today. That small inheritance has appreciated in value over 7 times the original amount they gave me. I know that they would have been very proud to see that. Maybe paying off your place would give you the same feeling that I have had. I hope so.....it's truly wonderful!

**mom2matty** · 04-02-2008, 11:14 AM

I would also pay down the house!

**Denvergirlie** · 04-02-2008, 11:27 AM

Become debt free and start saving for an EF. The use other moneies that would have paid car, house,e tc and invest in retirement funds, etc.

**AmyBoz** · 04-02-2008, 11:30 AM

I'd put $10,000 in savings for EF.
I'd put $10,000 in savings for adoption.
And since you are debt free otherwise, I'd use $10,000 toward the house. If you decide, at a later date, not to pursue the adoption, then I'd take that $10,000 and also put it toward the house.

**cheles2kids** · 04-02-2008, 11:34 AM

You've had some really great advice!
But I did see you mention "it would almost pay off your home", how much would you still have left to finish paying it off?

I really don't know how I would go about it. It would be nice to finish paying off all of the little bills I have and be done with them, it would also be really nice to have about 3 months EF put aside, so I really don't know which way I would go with it.

Do you happen to have any EF put aside? That would weigh into my decision.
Are your cars in good shape? Do you need to put aside any extra money for any repairs in the near future? Are you only making minimum payments on your cc.? I'm just thinking out loud here, you don't have to answer any of these questions, but these would be some things I would consider before going straight to paying off the house.

Since you mentioned only having a couple thousand left on cc., would it be more wise to take $10,000.00, pay them off, finish paying off the cars and put the rest into an EF and then take the other $20,000.00 and pay towards the house? Then you would have almost everything covered-bills would be paid off, cars would be paid off, you'd have some money set aside AND you could still have a significant amount paid off towards your home?

I would suggest though, until you've completely decided how to spend it I wouldn't touch it at all. You will know what is best for your situation and once you come to that decision, you will have no doubts about whether your doing the right thing or not.

Good luck!

**PAVallygrl** · 04-02-2008, 11:38 AM

3 months of living expenses.
Pay off the Credit Cards
Pay off whats left on the cars
put some towards the house.

Then look into the adoption. Personally, I would want a complete clean slate of everything before a child or another came into the house - since Kids are expensive and I'm going to be spending enough without already having bills up the wazoo from the past.

**FrugalMomof3** · 04-02-2008, 01:53 PM

I would fund the EF ($1000) and put 3 months of living expenses aside. They apply the rest to the house. You could even set some aside for a summer vacation as I am sure your family member would want you to atleast enjoy some of it.

I know you want to adopt and that's a great thing but you need finances in order first, JMHO.

**redbug29** · 04-02-2008, 02:12 PM

This is what I would do, pay off all credit cards and cars, then use the rest to pay for your house, see how soon you can refinance your home into a smaller rate, try to get somthing with no closing costs, then the money you save by paying of cards and cars use that for extra payments on the house.. If you pay your morgage half the amount every two weeks you will make and extra payment a year there-fore paying your house off sooner....if finances will allow you to....
Tiffany