24K update

24K sitting in the credit union at 0.55%…

5K went to pay for new mattresses and bedframes (organic natural mattresses, wooden beds, but no headboards)

7K to pay daycare a lump sum to get a 5% discount.  The part we’re not paying during the year will either go to retirement (we could put away 76K extra into tax deferred savings if we had that much) or to pay down the house.  But I’m not sure which… I’m leaning towards retirement.

~1K is going to combat gremlins who decided to go on a rampage since we released this extra money from its previous obligation.  The sprinkler guy, the electrician, the locksmith, an appliance repair person, a car battery… (we did save $600 in furniture repair using a tube of toothpaste).  Oh lord, I just noticed we haven’t needed a plumber yet… I hope that doesn’t jinx us.

$1.5K is going for plane tickets to see DH’s family at Thanksgiving.

$500-$800 will go to buy a gas grill at the end of the season.

$300 to change the locks on the house. (We have a lot of locks on the house.)

$2K for the 529 plans of DH’s cash strapped relations.

That leaves ~6.5K.  That’s not quite so stunning as the original amount.  Mortgage lump sum? It’ll have to wait a month because of the refinance. :) I hope that doesn’t attract more gremlins. :(

Whaddya think?  Did we make bad choices?  Good choices?  Any thoughts on the remaining 6.5K?

Posted in Uncategorized. Tags: . 7 Comments »

7 Responses to “24K update”

  1. Grace Says:

    OK, I just have to ask (even though I think nitpicking the personal choices of others is, well, nitpicking!)–$7000 for a BED????? I hope the mattress is solid gold covered in cashmere!

  2. nicoleandmaggie Says:

    No! 7K for daycare for the year.

    That’s two beds and two mattress sets, two pillows, and s/h, coming into just under 5K. The mattresses were each about 1.5K, including taxes. The kid didn’t have a bed or mattress or pillow at all and our mattress set is ancient and was starting to negatively affect our sleep. We also didn’t have an actual bed before, just the $50 wire frame that DH said was getting warped.

    The mattresses are natural latex and covered in wool and organic cotton. They have no flame-retardant chemicals so no off-gassing (which they can do because the latex and wool are naturally flame retardant). We did spend a lot of time comparison shopping and doing research on exactly what we wanted. The company *claims* these mattresses last 20 years instead of the regular 10, but our last mattress salesman also claimed that the mattress we bought would last 15 and that was really stretching it. However, this company does have a pretty good warranty and it can swap out internal parts to increase or decrease firmness for less money than the original mattress costs.

  3. Z Says:

    Remaining 6.5K, save it for future gremlins or if you want to spend, use it to upgrade house in a way you will enjoy but that also adds to its value.

    I have a question. I am refinancing the house and it will happen but it isn’t through yet, so that’s a credit inquiry. I now have a 0% credit card balance transfer offer that I could transfer a small balance I am carrying onto; it’ll be paid off in a year anyway but this would be at 0%. But if I apply, it will be a second credit inquiry in a month. Should I do it just out of spite and to save the couple of hundred dollars in interest I’ll otherwise pay, or am I smarter to leave it alone?

  4. nicoleandmaggie Says:

    Z– If they haven’t approved you for the refinance yet, I’d wait on opening a new credit card. The first time they tried to refinance us over a year ago, they got almost to the end and then mis-appraised the house so we had to start over again. Personally I’d wait just in case the mortgage company needs to hard pull you again.

    If you’re absolutely positive that the mortgage is going through and they’ve already pulled your credit all they’re going to pull, and you won’t be trying to buy a car or house any time soon, then go ahead.

    We have a regular emergency fund for gremlins, but with the way it’s been going recently I might ought to bulk it up a bit. There’s still a few things left in the house that could break. DH has been talking about doing some renovations– getting rid of carpet in the kids bathroom and in the dining room. But more than the money we’re worried about the time commitment. We’re both up for tenure pretty soon. I am thinking of setting some aside for window treatments (to replace the ancient water-stained vertical blinds that the extended family keeps complaining about) if DH’s mom wants to take care of that when they visit next (since I hate/suck at decorating and DH’s taste is … eclectic).

  5. Budgeting in the Fun Stuff Says:

    My only criticism is having the $24k making .55% in a CU instead of 2.15% at Smarty Pig. ;-)

    I think you made purchasing decision like we all do…and I can’t ever judge someone’s bed again after spending $6000 on a Tempurpedic mattress and a whole solid wood bedroom set…

  6. nicoleandmaggie Says:

    I dunno… it would be making a little under 4.75% (mortgage deduction) on the mortgage… but then I wouldn’t still be deciding what to do with it.

    A good night’s sleep is very important! Other than the bed, our bedroom is pretty darn empty. One day we may buy furniture… I think most folks who criticize expensive furniture purchases already have furniture that they would be replacing. When you don’t have anything sometimes it’s worth it to pay the marginal extra cost to get something nicer than if you already had something, since you have to buy the whole thing anyway (if that makes sense…). Like if you already have a $800 piece, it seems foolish to replace it with something that’s $1000, but if you don’t have anything and the $1000 piece is nicer, it’s really only a $200 difference from what you would be spending anyway.

  7. Sandy L Says:

    The last time I checked my portfolio, I was down 2% for the year. I’m so tired of losing money in my retirement that I just lowered my contributions by 5%. (I was saving 20%, now I’m back to 15%).

    I’m much more inclined to go for the sure thing right now, which is mortgage balance.

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