June

After Reading this post on All Financial Matters I started thinking how true it was for me that there is a definite pattern to stuff I need and when the money is provided.

June has been bad. Financially. I have noticed that there has been a river of outflow on my checking account. There has been a change on the income. I see the drought happening and I am scared really really scared. But I know that I will work hard to find a solution. I do not want to bring this baby into a world where I cant send another child to school. No way. So in order to make sure we don't repeat with child no 2 what happened with child #1 I am on a mission to pay off my debts. I think I need to get a second job. I have hope I will be able to start right after vacation. I do have to work July 12 and I wont be able to work weekend of Aug 22nd but that mostly frees up my commitments for the summer and beyond. Once my daughter goes off to college I will be free most weekends. Dear fiancée will be frustrated by lack of me being around much but he knows how important financial stability is. He worked until 8:30 last night so he could earn some extra OT. I don't want him to get burned out though. Of course I don't want to get burned out either.

So here are some the related threads for all of these random thoughts...

My mom said she was planning on sharing her inheritance with me. I think she is being very generous. but now I feel like I know why the car has needed maintenance and why my checking account is pouring out of my account... Because I am going to receive money. Sigh. I want very much for the money to be used towards the down payment of a house. I want very much to be smarter then I have been in the past. I want to not be in debt. She has not told me how much she is sending. We have talked about amounts in the past and I am not sure how much it would be.

Here are my options for the windfall... Or maybe its just a list of financial needs I currently know about...

Contact lenses $350
Car $1000
Vacation $1000
Replacement of emergency Fund $600

Debt

$30,000


House down payment

Small 3% or $11,250 to $12,750

Med 10% or $ 37,500 to $42,500

Large 20% or $75,000 to $85,000


6-8 months of emergency Savings... $20,000



So the plan if its $10,000 then I will put $3000 towards Car, Vacation and replacement of emergency fund and find a mutual fund to earn decent interest on the 7k while we get ready to purchase a house It will also serve as a back up fund for emergency savings and down payment.

If she gifts me $20000 I will put an additional 2k towards my debt and I will put the remaining $15k into money market fund. At least thats what I think would be wise. That way I will be able to at lease make the 3% down in June if we are serious about the purchase of a home. I think Fiancée is. I know I am.


Grrr I cant remember my password to the debt snowball and as I am at work I have no way to look it up. Here is the deal. If I slow the progress of my payments from $1000.00 to 800 per month that would help me cope with the loss of child support. Rough numbers it only adds 8 months to the length of time before I am debt free. I am so calling Dave Ramsey to scream.

If I get a second job for 6 months and earn 350 per month 2150 additional dollars can be added to the debt. That will also help. For the terms of my permanent employer I cannot work while also on maternity leave and I should be able to get 12 weeks Its very generous. I do like the benefits of staying. Its one of the reasons why I do stay. Its certainly not salary. Its flexible time off and lots of generous leave. These are my choices.

So anyway...

If I were to take all 20K and roll it into my debt. would I be able to know it out in a year? Would I apply that money towards a down payment of a home. I cant truthfully answer that. I think the debt motivates me. I think the dog yipping at my heels is what keeps me focused. You saw how bad I am feeling this months and I did not know the money was coming. So wouldn't it be wise to keep on with the plan and use it for a home? Not sure I will have to include dear fiancée into the question.

The thing is... it was the crushing defeat I was felt when I thought about using a gift from my grandmother to pay off debt instead of a down payment for a home that gave me the willies enough to say NO MORE DEBT. It was the dividing line for me that was the moment of truth. So ... how can i ignore the gut wrenching telling me truly gut feel what to do with that money. I have to listen to that voice or what else do I have? I know in my heart I will pay down the debt. I have a plan. With 4 years is a long time. It is also a lot of debt. Accumulated over quite a few years. Most of what I purchased is gone. Most of what I paid for is long long gone. not its just interest on interest. I will not trade my 50s for debt. I cant do it.