Need some ideas...

iVillage Member
Registered: 07-05-2006
Need some ideas...
5
Thu, 02-04-2010 - 11:12am

This is my 4th week on the budget and last week I went way over because of a birthday party gift and a bunch of bills due the last week of the month, but I'm not worried because with only 4 weeks on the plan, I still haven't built up a reserve yet. I have one category that has a huge reserve...transportation. This account includes, gas, maintenance and registration and so far I have $184 dollars in it! YAY! This week we'll need about $50 of that for gas, but then I have $134 leftover and I am so glad because DH's car has a tire that keeps going flat and it could possibly need a new rim or maybe it's just the tire. I wouldn't be surprised though if he needs all 4 tires replaced. We just barely squeaked by the inspection this year because I told my mechanic we were struggling and he's a family friend so he let a few things slide. I'm going to take the car into some tire place this weekend to have them check it out. So I'm very thankful for my budget! It has been working out well.

Now on to my question and my need for ideas:

I am getting back a pretty substantial tax return this year. So far, we're up to $3,852 dollars although that could go down a little before we file because I have a couple minor things to add. BUT we should still get back about $3800. I'm going to use this money to pay off my remaining debt of $1300 dollars. Then I'm going to use the rest to fully fund my emergency fund, although by the time I get the money, with the way I've been saving, it will probably already be funded! Either way, I'm going to have a ton of money leftover from this refund. At first DH and I talked about getting new carpets or some such nonsense, but then after really thinking about it, I realized that we should put this money away for next Fall. In November we have to pay $700 dollars in timeshare maintenance fees (crappy, I know...we only pay this once every other year) $600 dollars in registration costs, then there's all of our kids birthdays in September/October and then comes Christmas. My idea is to put the leftover money into some kind of CD or money market. We shouldn't need the money for 6 months.

On the other hand, this will only leave me with my $1000 dollar Efund, and whatever reserves I build into my budgeting categories, but we all know what an emergency can do to that! All that money could be gone in seconds if something happens. We have no credit so it is very hard for us to get our hands on money fast if we need it. That has been our problem for so long, but I really want to do something smart with this money and I'm afraid that if I put it in some savings account, then I'll find reasons to spend it.

What should I do with the approx. $2300 dollars that I'll have leftover from my taxes?

iVillage Member
Registered: 11-14-2008
Thu, 02-04-2010 - 11:27am

It was not clear to me what could be left over but here is my suggestion.

1. Fully fund efund(if you have not done this already but try to)
2. Split the remainder in half, put the first half into savings you cannot touch, give the 2nd half to your parents.
3. Go back to your budget. You should be putting money into your sinking funds for birthday parties, and time share fees every month.

Good luck Abby!


iVillage Member
Registered: 08-04-2008
Thu, 02-04-2010 - 11:39am

Here is what I would do with that refund if I were you:


#1 fully funded $1,000 EFund


#2 debt paid down


#3 sinking funds for Birthdays/Christmas you can call gifts, Condo Fees, taxes - you don't have to fund them all, but can at least start those funds so every pay you have money for them - in your case I would also start a School fund - for you back to school expenses, and any fees for the kids related to school.


#4 3-6 month emergency fund


I am now a DR believer, so that is my opinion.


-Marie




iVillage Member
Registered: 07-05-2006
Thu, 02-04-2010 - 12:51pm

I'm getting a potential $3852. I need $1300 and I'll be out of consumer debt. that leaves $2552. By the time I actually get the money, my EF will be mostly funded by then because I have $570 already and I'm putting away $84 dollars a week. I don't anticipate getting the refund in my hands for another 4 weeks so I should have $906 in my EF by then. So that leaves $2452 leftover. Some of the big expenses I have coming up during the year:

Timeshare: 700
Registration: 600
Christmas: 500
Birthday parties for 3 kids: 500

Total: $2300

As soon as my EF is funded, that $84 dollars a week will go towards savings. I guess you could call that the start of my 3-6 month contingency plan. Also, with my debt gone, I will free up another $300 dollars a month. I wanted to fully fund the items above with this money because each year they royally screw me over. I never plan well for them, they are huge expenses and they all pop up within 3 months of each other. I just figured that if I put the money away into an interest bearing account, I wouldn't have to worry about them and the weekly money I put away into sinking funds could go towards other things.

So what you guys are saying is that I should:

start sinking funds for these things and partially fund them. (I already have sinking funds for clothing and gifts)
Put money away in a 3-6 month living expenses category
Pay back my parents (I've been waiting for my consumer debt to be done before I started tackling this. It's something I have to start thinking about how to accomplish)

These kinds of decisions are hard to make!

iVillage Member
Registered: 12-10-2009
Thu, 02-04-2010 - 4:51pm

hmmm decisions decisions.


I would fully fund the e-fund and maybe make it 1500 since with emergencies the money goes quick.


Then I would set aside the $ you will need in the fall for the birthdays and time share.


Then I would take the remaining and take out 50-75 for the family as a special tax refund treat

Liz

student loan paid off 2010

Bathroom remodel loan paid off 2013

Pending Car loan to be paid by the end of 2014!!!!!

 

iVillage Member
Registered: 11-17-2007
Thu, 02-04-2010 - 9:29pm