G-man sold the boat 3 weeks ago. I hated the money sucking boat (even though it hasn't really been a financial issue for awhile). But when the new owner was driving it away....I got sad. The boat was purchased 6 months before G-man and I met, and I do remember the pre-kid days when we would take the boat out...he would fish, I would read. Couple that with the major changes we have in general, and I just got overwhelmed.
We got $2000 for the boat. Blue book was around $5000 for an excellent condition boat, and this was far from excellent. It probably needs a few thousand in work, and time. For the 20-something kid that bought it, who's best friend's dad is going to help him fix it up....they got an excellent deal (a trailer and a boat).
So we now have $2000 in cash......plus
Way earlier in the year we had saved about $2000 to make a massive snowball payment. I just had a really hard time actually pulling the trigger, so it sat for a bit. Then the move entered into the picture. We used about $800 toward the getting-the-house-ready, and another $100 went to something that is escaping me right now....leaving $1100.
Add in the boat money, and we are at $3100.
Plus, we received a cash gift when G-man left his CT office. That is another $350.
So now we are at $3450. This is not our regular savings account. This is not part of our EF. This is pure "extra."
As usual, I can't just pull the trigger on one thing with the extra money. In some parallel universe there is a Mysti who has ONE plan and just follows it. If I ever meet her, I will ask her how that is working out for her.
Meanwhile, in this universe, I keep running numbers....in no particular order.....
- Pay off G-man's car. I haven't updated the side bar yet, but G-man's car is about $3472 with the December payment. We keep a little slush in the account, so another $20-ish dollars and the car loan is gone, freeing up $127 a month, which could go toward debt or toward living expenses while we are living in 2 households.
- Huge snowball to Mysti's car. My car loan is about $5100. Add in whatever we get from our tax return, and there is a pretty good chance that by spring the loan is paid off, freeing $230 a month. Again, go to debt.....or living expenses. The biggest downsides to this option are that the loan has a very low interest rate so we aren't saving a huge amount there, and there is at least a few month delay before this is actually paid off....so the freeing of the money doesn't help in the short term.
- Huge snowball to the CC. Obviously it doesn't get rid of the debt, but it is a boost to your credit score, which has fallen a few points because of the utilization ratio. We are still in the high 700's, but I get an icky feeling seeing it drop. As always, the concern is that using the CC as a crutch will bring the total up again.....yes, the simple answer is don't do it. But let's just lay the cards on the table...there is a chance this is going to happen. I know some of you will yell at me about this, but your yelling doesn't solve the problem that is "cash flow."
- Save it for the move. We already know the move is going to run us in the $6500 range (between the movers, my trip to go house hunting, misc travel expenses, setting up a few home expenses, etc). Obviously this covers about half....add in the tax return in a few months, and we should have about 3/4 covered. We had figured at least some of our move would be charged, with the plan that we would have it as a tax write off...but that won't happen until 2016. Whatever money we get back will go to debt in one form or another, it will just depend on what the situation looks like in 2016.
- Living expenses. I started writing this post before we got paid yesterday and saw our $159 check. The idea of saving it for living expenses was sort of on the bottom of the priority because a) we really didn't think the check would be THAT low, b) concern that it would get eaten away at "nothing", and c) G-man getting a second job was always a consideration to make up for a deficit. But now that we know that we have about $330 less per month....this would float us for 10 months. And we already know that this move is going to happen before then (hoping for May or June!)
- Fund the miscellaneous accounts. I have talked many times about our on-line funds to pre save for expenses, such as car insurance and maintenance, water bill, taxes, etc. We also save for the cats, kids activities, Christmas....but right at this moment, those are secondary. We could put aside money we know we are going to need for at least the next 6 months and not have to worry where that is going to come from.
In the short term.....it is going to sit and wait. The next 10 days are just not the right time to make a decision, so we will mull it over. (Although I would love to pull the trigger on 12/31 and bring out 2014 down!!!) I am trying not to split the money into small piles, because it really doesn't help the big picture.
I really do wish we were in a situation where we could SPEND this. But we aren't. So this option is not an option. But the thought was nice for the 1.3 seconds that it lasted.
Feel free to interject. Am I missing something?