New Upcycle Ideas 842
1 day ago
Monday, June 29, 2009
My husband is really enjoying his new job. He likes the people he works with, he likes the variety and he (we! Hah!) like the pay. This boss pays the vacation pay out on every cheque.
Now we need to decide what to do with this extra money. Before taxes it's about $80. With his last 2 paycheques we've just spent the money willy nilly but I'd like to do something responsible with this money.
I've been thinking about it and have come up with these 4 options:
1. Put the holiday pay into an account for when we do take holidays.
PRO: Holiday Fund would become quite large quite fast as we are already saving $110 a month towards UK 2010
CON: Well, not really a con but just that -- that we are already saving $110 a month and that perhaps the money should funnelled elsewhere (either planned spending or going towards improving cashflow)
2. Put the holiday pay towards paying off the LOC
PRO: It's always best to work hardest at becoming consumer debt free.
CON: There would be no 'pay cheque' if/when we actually take holidays, kwim?
3. Put the holiday money into planned spending accounts.
PRO: We could identify more areas to save for (ie. Paying house insurance in one shot instead of monthly) & have savings for a variety of fun stuff (ie. new tv, new car)
CON: Interest is still accruing on LOC, holiday fund not growing quickly.
4. Some crazy combination of all of the above.
As usual do things the wacky dinah way. A little of everything.
What's your vote?
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6 comments:
How much are you putting towards your LOC each month as it is?
If you do put it in your vacation amount, you should probably increase the target for that account. The $4k budgeted, I'm assuming, was to cover the costs of the trip itself, but if hubs takes a week off here or there, you'll be without his paycheque for that week, unless you sock it away.
@FD - we have $25 weekly towards the LOC.
@stsammy - good point. i didn't think of that.
husbands work deals with overtime a little differently too. it all gets 'banked' and then at christmas everyone gets a paid 2 week holiday and any OT over and above that gets paid out.
I'd split it! $80 is a lot of money but being able to put away an extra $40 into the travel fund (who says you have to use it all during the planned trip?) and an extra $20 onto the LOC will help. If its a revolving LOC, it will be there in times of need. If you put the remaining $20~ into another account, you'll have money for when your husband isn't working (those one or two days here and there).
Good luck with the decision!
Another vote for splitting it up! :)
Use it to pay yourself when you go on holidays.
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