Good news, I received a 5% raise yesterday at work. And further good news is that the raise is retroactive for a few months. Whoo-hoo!
So, since today is pay day for me, I received my newly increased paycheck via direct deposit and a check for the retroactive pay. Eyeing that retroactive pay, we could use it towards funding our 2012 IRAs or towards paying down our mortgage. We are behind on both of these 2012 savings goals (behind $2371 in funding our IRA, and behind $1461). Or we could put it towards expenses related to turning Rental #3 (which Mr. Sam is working on as we speak).
But, what I really want to do is put it towards the art work that I've been saving for since Memorial Day.
What would you do, put it towards 2012 saving goals, put it towards current rental related expenses or spend it on something fun? As an aside, I already have $110 in my art account so I only have $515 to go before I have sufficient funds to purchase. This piece of art would be my Christmas present to myself from myself and Mr. Sam.
5 comments:
Congrats on the raise! If it were me, I would probably put the money into my Roths or paying down the mortgage.
Congratulations on the raise as well.
The question is interesting to me because, I would hazard a guess that the money will be applied to its most useful purpose. However, in regards to the retroactive pay (bonus pay); I think I would compromise and put 1/2 towards the expenses in turning Rental #3 and the other half towards the piece of artwork that you are interested in.
Another thought, is that making a principal payment to y'all's primary mortgage would result in future savings that would exceed the cost of the piece of art.
Congratulations, again, and keep making great things happen,
When you work hard, sometimes you deserve a nice break.
I say pop open a bottle of wine and enjoy the newly acquired artwork hanging in your house.
Sam, congrats on the raise! That's good news for sure.
When I negotiated a raise last year, I set some aside for increased taxes, some aside for retirement, and then began contributing to ESAs for my brother's kids.
In your shoes, I'd set some aside for taxes, some aside for the artwork (a windfall is a great way to finish that acquisition!) and then I'd make sure to max out the Roth as planned.
Any chance you could do a longer post on landlording? DH and I are thinking about getting into the business, and you were the first person I thought of as someone who could speak to it (we used to exchange info on the GRS forums, until the site became so buggy I could no longer log in reliably).
We would LOVE to hear your analysis on when and how to buy a rental: things to budget for, what does management and upkeep really cost, how to assess a property to make sure it's desireable, what sort of cushion you need, etc.
if we were me since its unexpected money, I would put 1/2 towards catching up on the goals and the other half to your art account.
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