Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

"Extra" Money

Posted by on Dec. 31, 2014 at 12:00 AM
  • 16 Replies

Were you very good this year?

Did Santa leave you some money in your stocking?  

If you were lucky enough to get the gift of cash this year or if you are expecting a healthy tax refund in the new year, now is a great time to think about your financial priorities in terms of "extra" money.

(and, yes, I know a tax refund isn't really "extra" since it was your money in the first place, but it feels like a bonus, doesn't it?)

In my family, for example, extra money is usually divided 90/10: 90% to savings and 10% to fun. A friend of mine has a 10/90 split: 10% to savings, 90% to family vacations. Every family has to make their own choices, but here are some of the things to consider when you come into extra money:

1. Do you have any consumer debt? If you are carrying a balance on a credit card or still paying off a car loan, I highly recommend you put any and all extra money toward those expenses before you do anything else. If you are consumer debt free, move on to question #2.

2. How is your emergency savings account? Do you have the recommended 6-8 months of emergency savings available in a liquid account? If you aren't quite there yet, consider adding extra money there to move you closer to the goal.

3. Retirement: Do you have a Roth IRA yet? Setting up one online is easy, especially if you have some extra seed money to get it going.

4. Are there any big expenses on the horizon? You may want to consider parking the money in a short term savings account if you know that someone is going to need braces this year or if your car is running on duct tape and luck.

The biggest question to ask though might be this: what does your family most need this year? Is it more financial security or might it be fun or time together?

Are you expecting a tax refund or any other "extra" money to come to you in 2015? If so, how will you spend it?

by on Dec. 31, 2014 at 12:00 AM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-10):
by on Dec. 31, 2014 at 7:32 AM

We don't expect any extra money.  It would be nice to have, though!

If we did, we would likely put it into savings or pay down some debt.

by Bronze Member on Dec. 31, 2014 at 7:52 AM

extra? hmmm I don't have any

by Member on Dec. 31, 2014 at 8:23 AM

We will be getting a tax refund, as well as DH's bonus around always. 

Dh and I are very good with money...we have a hefty savings account, CDs in 2 different banks, a 2nd savings account in a separate bank, a ROTH IRA, plus Dh's employer matches his 401K contributions. He will get a 5 figure bonus in February...we earmark portions of the money: tithe comes out first. After tithe, we are earmarking a small portion to replace the carpet in our home as we want to sell it in the coming year or so. We are also going to invest in some more CDs and put a portion into our 2 savings accounts. 

The only "debt" we have is our home as I pay off any cc bills monthly, our cars are paid for and neither of us have student loans as they were paid off when we graduated. 


" I can do all things through Christ who strengthens me." Philippians 4:13 

by Silver Member on Dec. 31, 2014 at 8:32 AM

 Whatever we get back, which isnt much, we just put away to use during the Summer when my husband isnt teaching.

by on Dec. 31, 2014 at 8:37 AM

 We'll be getting money back on taxes this year. I always use it to pay property taxes and insurance for the year. What's left will get socked away on DH's truck. I want it PAID OFF! I realize it's a lot of money that we get back every year but the majority of it comes from EIC and not what we have paid into it. Therefor I don't feel like I'm letting the government have my money interest free for the year.

by Silver Member on Dec. 31, 2014 at 10:29 AM

I like both of those splits, though I lean toward the 90% savings, but it is nice to have that vacation $. 

DH and I each got some cash for Christmas and it is going into the savings account.  We are expecting a bonus for him, and his vacation buyout from the sale of the company he works for, and those will be divided among savings, and enough firewoord and pellets to be prepared for next winter.

by Bronze Member on Dec. 31, 2014 at 10:33 AM
We have prioritized debt to pay down when we do have extra money, though we aren't expecting anything major this year.
by Member on Dec. 31, 2014 at 10:51 AM
Honestly, I have no idea if, or how much of, a return we will get. When we were young, we definitely spent it on fun but as we have gotten older, we put quite a bit of it towards bills.
by on Dec. 31, 2014 at 3:18 PM

I'm expecting a refund. I will put it in savings.

by on Dec. 31, 2014 at 4:06 PM

goes into savings

Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)