What to do with $2400?

January 19th, 2007 at 06:59 pm

Everyone,

I have a dilemma. Yesterday, I sold 75 shares of my company's stock options, and now I have $2400 to do with as I please. Do you guys have any suggestions? Here is my current state.

Age:
30 years old, married, 1 child

Debt:
Mortgage-$150,000
StudentLoan-$9000
Wife's Student Loan-$18000
No Credit Card debt

Investments:
Total Retirement Investments - $96,000
Emergency Fund - 5+ months
College - 529plan & saving bonds - $3000

Lately, I have been listening to David Bach's mp3's ( http://www.finishrich.com/books/automaticHO_brandhome.php ) on "The Automatic Millionarie Homeowner" and he suggested setting up another high interest checking account to put the initial investment in make small automatic direct deposits from my regular paycheck into this account too. This checking account would be used for purchasing another home in the future or maybe a small parcel of land.

Anyhow, I'm looking for any suggestions. Thanks!

Dickyvman

Posted in Uncategorized | 11 Comments »

11 Responses to “What to do with $2400?”

JanH Says:
January 19th, 2007 at 07:15 pm

I guess I'm not thinking investments. I would start a new car fund for the next vehicle. We had a couple die in the same year. It would have been much nicer to have had more money saved for that purpose.
dickyvman Says:
January 19th, 2007 at 07:32 pm

Both our cars are fairly new - 2001 civic and 2005 Ford Escape
Amber Says:
January 19th, 2007 at 08:19 pm

No debt is my new motto and I would pay off/ towards either the student loan or knock off $2400 on the mortgage...you guys are doing pretty well else where, good luck
LuckyRobin Says:
January 20th, 2007 at 12:54 am

I think I'd use it on the student loan with the lower balance myself.
Tightwad Kitty Says:
January 20th, 2007 at 02:53 am

I would be doing a 50:50 with it.

Half off the lowest student loan, and open that account with other half or put it off your mortgage or $1000 +1000+ 400

First Workout what will give you the best deal & return for your money and that may the way to go! Lump payment off loans may worth a lot more than a little bit interest you will be getting now!
campfrugal Says:
January 20th, 2007 at 05:54 am

I would sock it in a higher interest savings account, like Emigrant or ING and let it draw some really good interest until you may need it, for the unexpected. You don't have to decide today, what to do with your money so sock it away. Something will come up.
tinapbeana Says:
January 20th, 2007 at 06:14 am

i see retirement listed, but it doesn't specify what type of account. could you fund part of a roth if you don't already have one (or haven't already fully funded it).

with that said, i would put it in the college fund. 2400 gets to grow a lot in 15-18 years!
robex Says:
January 20th, 2007 at 08:12 am

I'd put it on your student loan...a la Dave Ramsey...pay off the smallest loan first!
koppur Says:
January 20th, 2007 at 08:17 am

Pay off debt first. Whether it is student loans or towards the morgage, it becomes a lot easier to save money for retirement or college once you have no debt.
scfr Says:
January 20th, 2007 at 08:47 am

Does your wife work? If not, I'd bring the emergency fund up to 6-months.
Then, I'd put money in to any tax-deferred savings vehicle I could (IRA, college savings plan, etc.). Then, if anything was leftover I'd apply it towards the highest-interest-rate loan.
Broken Arrow Says:
January 20th, 2007 at 08:17 pm

Hmm, that IS an interesting question, isn't it? Because there does not seem to be an obvious answer....

Actually, what I don't see is the interest rates on the debts. Either way, I would lean towards compound interest debt with the highest rate first. That should yield the higest savings for your money.

That's my take on it.

What to do with $2400?

11 Responses to “What to do with $2400?”

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