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Christmas bonus check from work....Where to put it.
Jinx86
Posts: 3,671 ✭✭✭✭✭
Its nothing out of this world, but it is double what I recieved last year. This check came with a very nice Bulova watch as a gift for 5 years of service to the company. So my question is do I put this extra money twards my wifes debt or do I hit up PM's. What would have the better affect in the long run. Paying down 18% APR CC dept...In my head sounds like the better move. Although I dont have much in PM's on hand.
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This is a no brainer!
I knew it would happen.
In God We Trust.... all others pay in Gold and Silver!
It depends upon the individual and their spending/savings lifestyle. How many people have remortgaged to pay off the CC and other debt to be right back there in the same position (fairly quickly sometimes). If you don't change the actions of getting in debt, its only a temp fix to pay the debt off.
Let say a person has $3400 on one CC, and $1200 on another. The run into $5 extra money and pay it off. It would be common to run that same dept back up, even within a year, as I have. (the size of the example $$ doesn't matter). So, in a year so, you end up close to the same debt position again because thats life and its circumstances - real life. You have a new tv, or patio furniture and a few other things (because ya just had too). Its very easy to say or think that just now, JUST RIGHT NOW, in the middle of getting this new money, that I'll completely change my ways, be cured of debt and never CC/borrow again... Its just not that easy to just change at the second ya come into money. This is sort of funny but true though, eh...
Sometimes, in some circustances, if one banks the new money quickly, say in a Roth or some other long lasting-not easy to liquidate vehicle, even PMs...
in the end they still have something "in the bank." Its how I got part of my savings over my lifespan, while still spending along the way because I'm a junky and i know it. It partially worked for me, and while not the best choice, I still have the savings, the PMs, and the CC bills I work on.
The kicker is, that if one is really really serious about that (pay the debt/don't spend anymore fix) they can still STOP spending, make a payment schedule and pay it off the hard way, because if they were really serious enough, this would work too, which is sometimes even more effective overall.
It's partly how I got my PMs this time.
My alternate suggestion:---
It's a different view but something to consider. You may still have "debt" next year and the next either way, but you could-have "more PMs and debt". I usually take the second option, and I have some PMs. My intelligent beautiful wife always gives the same advice about paying off the debt and the right thing to do. But she is in debt and has no savings.... (think that is why she married me - I'll take any advantage so I'm ok with it)
thats my friday advice
In your case you will be up over 25% by just paying off the debt
I know what I would do
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
And keep the watch, 5 years of service with one employer is an increasingly scarce achievement these days.
Liberty: Parent of Science & Industry
Kind of odd really, as a married couple we like keeping our finances seperate. We each have certain bills we pay with our income, and hardly overlap. So at any given moment neither of us know exactly how much money the other has. We dont have high paying jobs by any means but were more then comfortable.
Kind of odd really, as a married couple we like keeping our finances seperate. We each have certain bills we pay with our income, and hardly overlap. So at any given moment neither of us know exactly how much money the other has. We dont have high paying jobs by any means but were more then comfortable.
For several years my wife and I had tremendous debt from never having good jobs, but loads of expenses, always having to work for somebody else , you never seem to be able to get ahead. The day we cleared the debt was a load off of us, and then we were able to put away some real $. (course the coin shop PM buiness I started in 08 helped tremendously)
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
<< <i>This is debt my wife aquired putting her self through college(I cut the card up long ago). She likes the idea of paying it off on her own, but limited income from what she loves doing. Bonus is goin to be applied to her card as bit of a surprise for her, the watch has my name/company/achievement engraved to it kind of hard to get rid of.
Kind of odd really, as a married couple we like keeping our finances seperate. We each have certain bills we pay with our income, and hardly overlap. So at any given moment neither of us know exactly how much money the other has. We dont have high paying jobs by any means but were more then comfortable. >>
MJ has the best advice and reasoning to do such.
Change the backing of the watch if that's not an outrageous suggestion.
BTW congrats on the unexpected bonu$ amount.
Here's some irony for you, my "Christmas bonus" was given in the form of a pre-paid debit card. I went to make a payment on a debt note today at my local bank and they wouldn't take it as form of payment.
Too many positive BST transactions with too many members to list.
<< <i>Pay off the 18% debt for sure... if your wife still wants to pay it off herself, she can then just owe it to you. Maybe you can even give her a better interest rate or maybe even find other ways for her to work off the debt
She can pick up a vacation or 2 later.
<< <i>Pay the debt. Cut the card and it won't come back. >>
<< <i>I am happy to hear some are still getting Christmas bonuses! Good for you guys! >>
Got mine in the mail Saturday. Not to be outdone by last years led headlight thing ( the ones you get for free with a flashlight) my firm sent me a used little pocket calculator with a pack of new batteries and a note about how the thing was running low and needed the batteries replaced. I'm crappin you negative.
<< <i>Not so simple. Logic doesn't always work with humans. Humans are funny that way..
It depends upon the individual and their spending/savings lifestyle. How many people have remortgaged to pay off the CC and other debt to be right back there in the same position (fairly quickly sometimes). If you don't change the actions of getting in debt, its only a temp fix to pay the debt off.
Let say a person has $3400 on one CC, and $1200 on another. The run into $5 extra money and pay it off. It would be common to run that same dept back up, even within a year, as I have. (the size of the example $$ doesn't matter). So, in a year so, you end up close to the same debt position again because thats life and its circumstances - real life. You have a new tv, or patio furniture and a few other things (because ya just had too). Its very easy to say or think that just now, JUST RIGHT NOW, in the middle of getting this new money, that I'll completely change my ways, be cured of debt and never CC/borrow again... Its just not that easy to just change at the second ya come into money. This is sort of funny but true though, eh...
Sometimes, in some circustances, if one banks the new money quickly, say in a Roth or some other long lasting-not easy to liquidate vehicle, even PMs...
in the end they still have something "in the bank." Its how I got part of my savings over my lifespan, while still spending along the way because I'm a junky and i know it. It partially worked for me, and while not the best choice, I still have the savings, the PMs, and the CC bills I work on.
The kicker is, that if one is really really serious about that (pay the debt/don't spend anymore fix) they can still STOP spending, make a payment schedule and pay it off the hard way, because if they were really serious enough, this would work too, which is sometimes even more effective overall.
It's partly how I got my PMs this time.
My alternate suggestion:---
It's a different view but something to consider. You may still have "debt" next year and the next either way, but you could-have "more PMs and debt". I usually take the second option, and I have some PMs. My intelligent beautiful wife always gives the same advice about paying off the debt and the right thing to do. But she is in debt and has no savings.... (think that is why she married me - I'll take any advantage so I'm ok with it)
thats my friday advice >>
I totally get the above, for some people it's almost better they keep their CC's near max and invest the bonus in something else. Othersie they will just rack up the CC's again.
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<< <i>DrBuster, that is just sad..... >>
Here's the rundown of the past 5 xmas bonuses. Mind you, I'm billed through them over 6 figs, so they make a nice 5 figures off me just for processing my paycheck and that's it (no benies/vaca/etc). The client is a big beverage company HQ'd in Atlanta, figure it out.
Wind up radio thing ($10~ at the time)
Little LED flashlight ($5~)
Homedic little vibrator massager thing ($6~, yes a damn vibrator)
Headlamp little LED light thing ($5~)
That calculator
Absolute worst consulting/design firm I've ever worked for.
<< <i>
<< <i>DrBuster, that is just sad..... >>
Here's the rundown of the past 5 xmas bonuses. Mind you, I'm billed through them over 6 figs, so they make a nice 5 figures off me just for processing my paycheck and that's it (no benies/vaca/etc). The client is a big beverage company HQ'd in Atlanta, figure it out.
Wind up radio thing ($10~ at the time)
Little LED flashlight ($5~)
Homedic little vibrator massager thing ($6~, yes a damn vibrator)
Headlamp little LED light thing ($5~)
That calculator
Absolute worst consulting/design firm I've ever worked for. >>
one of the above may or may not be a great gift....I guess it would depend on if you're married or not.
Too many positive BST transactions with too many members to list.
<< <i>
<< <i>
<< <i>DrBuster, that is just sad..... >>
Here's the rundown of the past 5 xmas bonuses. Mind you, I'm billed through them over 6 figs, so they make a nice 5 figures off me just for processing my paycheck and that's it (no benies/vaca/etc). The client is a big beverage company HQ'd in Atlanta, figure it out.
Wind up radio thing ($10~ at the time)
Little LED flashlight ($5~)
Homedic little vibrator massager thing ($6~, yes a damn vibrator)
Headlamp little LED light thing ($5~)
That calculator
Absolute worst consulting/design firm I've ever worked for. >>
one of the above may or may not be a great gift....I guess it would depend on if you're married or not.
Ha, yeah. I haven't seen that thing in a while too...hmmmm.....