What to do with 100k

[Anonymous]

I am getting my first big bonus soon. I am not sure what to do with it, as we have many needs.
1)we have debt
2)we need a new car
3)we need to move to better school district soon so we could use this money for upgrading.

I know 100k is not enough for everything and I don't know how to set my priorities straight.

[Anonymous]

1. How much at what interest rate?
2. What kind of car do you currently have? How old is it with how many miles? How far is your commute?
3. Where do you live now? Any home equity? How old are kids?

[Anonymous]

You haven't given any sort of useful information for anyone to give you useful advice.

What kind of debt? How much?

What kind of car do you have now? What kind of car do you need?

What is your timeline to move? How much do you have in equity for a new home?

[Anonymous]

Anonymous wrote:1. How much at what interest rate?
2. What kind of car do you currently have? How old is it with how many miles? How far is your commute?
3. Where do you live now? Any home equity? How old are kids?

1)We have about 20k cc debt at pretty high rate. I think maybe we can pay this first or at least half of it.
2)We have 2009 car with 160k miles on it. We have only on car and commute for one of us is 50min
3)We live in bad school district and if we sell will have around 150k in equity. I am pregnant with first, so we still have some time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:1. How much at what interest rate?
2. What kind of car do you currently have? How old is it with how many miles? How far is your commute?
3. Where do you live now? Any home equity? How old are kids?

1)We have about 20k cc debt at pretty high rate. I think maybe we can pay this first or at least half of it.
2)We have 2009 car with 160k miles on it. We have only on car and commute for one of us is 50min
3)We live in bad school district and if we sell will have around 150k in equity. I am pregnant with first, so we still have some time.

Well that was easy. #1 first. #2 second (<$30k). #3 third. Invest the $50k and wait until you have to move.

[Anonymous]

Is the 100k the gross or net amount?

[Anonymous]

Anonymous wrote:Is the 100k the gross or net amount?

Gross((
So it's more like 60k

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is the 100k the gross or net amount?

Gross((
So it's more like 60k

Depending on your hhi it may be more like $50 or $55. I got a big shock after the first year of bonus because the amount withheld wasn’t enough.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:1. How much at what interest rate?
2. What kind of car do you currently have? How old is it with how many miles? How far is your commute?
3. Where do you live now? Any home equity? How old are kids?

1)We have about 20k cc debt at pretty high rate. I think maybe we can pay this first or at least half of it.
2)We have 2009 car with 160k miles on it. We have only on car and commute for one of us is 50min
3)We live in bad school district and if we sell will have around 150k in equity. I am pregnant with first, so we still have some time.

Well that was easy. #1 first. #2 second (<$30k). #3 third. Invest the $50k and wait until you have to move.

Get yourself something reliable and inexpensive like a Honda Civic for 20k and then you have 60k left to add to your house savings. And don't get credit card debt again, that's ruinous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:1. How much at what interest rate?
2. What kind of car do you currently have? How old is it with how many miles? How far is your commute?
3. Where do you live now? Any home equity? How old are kids?

1)We have about 20k cc debt at pretty high rate. I think maybe we can pay this first or at least half of it.
2)We have 2009 car with 160k miles on it. We have only on car and commute for one of us is 50min
3)We live in bad school district and if we sell will have around 150k in equity. I am pregnant with first, so we still have some time.

Well that was easy. #1 first. #2 second (<$30k). #3 third. Invest the $50k and wait until you have to move.

Get yourself something reliable and inexpensive like a Honda Civic for 20k and then you have 60k left to add to your house savings. And don't get credit card debt again, that's ruinous.

Oh, this is before tax- nm. You'll be very lucky if you have 20k left for savings.

[Anonymous]

You most important priority is some restructuring of your life so, with a high income, you won't again have credit card debt (or really any debt).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is the 100k the gross or net amount?

Gross((
So it's more like 60k

Do you have any savings (like an emergency fund)?

Credit cards first. Then, if needed, put $20k in an emergency fund. Buy a new gently used car for less than $20k.

And yes, like PP said, restructure your finances. No more CC debt. Dedicated savings.

[Anonymous]

i use to up my 401K contribution heading into a bonus may as well make it work for you. 100K will become 55K pretty fast the taxes on bonuses are higher

[Anonymous]

+1 take care of all cc debt and commit to not accumulate more. Credit card debt is a massive drain on your ability to create financial stability/wealth.
+1 up your 401k contribution to reduce tax burden.
Establish an emergency fund (typically equivalent to to 6 mos expenses) to help avoid future debt. Pregnancy can create unexpected financial situations/costs (hospital bills, bed rest etc.) and having a baby even more. It's a very dynamic time of life. If you don't have enough for 6 months expenses do what you can and establish a savings plan to do more.

When your car breaks down, buy a 3+year old used car with low-ish mileage rated highly for reliability. This will give you the most bang for your buck. Don't buy until necessary, but put funds aside for it outside of the emergency fund. Call it a car fund so it doesn't get sucked into your expenses, but don't consider it part of your e-fund. Keep your eyes out for good used car deals. Research on edmunds.com for reliability/cost to maintain etc.

I wouldn't buy the new place yet. Moving adds a lot of costs. You don't need schools for years. But use any remainder to start a down payment fund with a plan to move in 3-5 years, spend the time researching neighborhoods/schools/commutes etc. Calculate how much more you need to have a 20% down payment on the neighborhoods you're interested and begin a savings plan.

This bonus is more a chance to clean up your slate and begin a responsible financial plan than it is to pursue new opportunities.

Congratulations on the bonus!

[Anonymous]

Absolutely pay off the credit card first. Pay all of it. If your car is still running fine, set aside some money to pay for a new car when necessary, but don't buy before you need it. If your car is having mechanical problems, buy a new car. I'd set aside the rest for emergency savings, if you don't already have that.