If I had an extra $5000 a month, I would have another baby!! Family is everything!

I’d up our house cleaning to weekly, invest about $3,000 for long term savings and designate the remains ~$1500 to shorter term savings- vacations, home improvement, new car, etc.

FWIW, when this was us about 3 years ago, we were on track for retirement and low on college, so $3,000 went to 529s, $1,500 to long term and $500 to short term. I’m still dreaming of the weekly house cleaning.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I.just want savings/emergency buffer for once. Every.single.time I think I am on the right track for a buffer something comes up and I get wiped out. It's really uncanny.

That’s not bad luck, that just means you’re not budgeting appropriately for occasional expenses. Zero shade, because we all kind of do that. If you look back at the last five years, and every year you think you know what you’re going to spend and it ends up being $10-15k more because of car problems, a flood, an illness, etc that just means you need a $10-15k category for big, relatively unpredictable expenses. But some of that could be your buffer, and then it’s okay if it gets spent and replenished sometimes.

Yeah it sounds like your emergency buffer is acting as an emergency buffer!

If it happens annually or with any predictable pattern, it’s not an emergency. It’s an inconvenience that you should include in your annual expenses and address with income or a sinking fund.

Anonymous wrote:

Anonymous wrote:I.just want savings/emergency buffer for once. Every.single.time I think I am on the right track for a buffer something comes up and I get wiped out. It's really uncanny.

That’s not bad luck, that just means you’re not budgeting appropriately for occasional expenses. Zero shade, because we all kind of do that. If you look back at the last five years, and every year you think you know what you’re going to spend and it ends up being $10-15k more because of car problems, a flood, an illness, etc that just means you need a $10-15k category for big, relatively unpredictable expenses. But some of that could be your buffer, and then it’s okay if it gets spent and replenished sometimes.

Yeah it sounds like your emergency buffer is acting as an emergency buffer!

Anonymous wrote:I would spend 1k to make my life easier and pleasant. Save 4k. This way you save 80% but there is also some reward for doing well.

That sounds right! We're at a HHI of $275 and another $5k/ month would actually be significant for us.

The $1k would include buying a new car and doing some home repairs, plus just fun stuff. But yeah, barring unexpected expenses - we'd try to save most of it.

I think I'd put some of it into a Frivolous Things fund and the rest into the market. So maybe $1k into there. Then when I was debating a trip price or something like that, I'd use that money to pad the expense. Like upgrade to 1st class even though you don't NEED it type of thing.

Anonymous wrote:I.just want savings/emergency buffer for once. Every.single.time I think I am on the right track for a buffer something comes up and I get wiped out. It's really uncanny.

That’s not bad luck, that just means you’re not budgeting appropriately for occasional expenses. Zero shade, because we all kind of do that. If you look back at the last five years, and every year you think you know what you’re going to spend and it ends up being $10-15k more because of car problems, a flood, an illness, etc that just means you need a $10-15k category for big, relatively unpredictable expenses. But some of that could be your buffer, and then it’s okay if it gets spent and replenished sometimes.

Anonymous wrote:That must have been a big bump to take home $5k more net each month.

I would note that I once got a new job that initially didn’t take enough out in taxes, so you might want to be mindful to hold back some in case you get a surprise tax bill next year.

This. Look carefully at your withholding before you plan to spend/ save anything.

We just went through this and upped our monthly savings rate. We have catching up to do so that’s where our focus needs to be.

Donate $500 a month to a worthy charity of your choice, splurge another $500/month (massage, dining out, purchase something, whatever your splurge of choice is), and save the rest

I would pay for weekly personal trainer and housecleaner, donate 10% to charity, and save the rest in a high-yield savings account until I could buy a rental property with it. But I realize that's not what everyone would want!

I would spend 1k to make my life easier and pleasant. Save 4k. This way you save 80% but there is also some reward for doing well.

That must have been a big bump to take home $5k more net each month.

I would note that I once got a new job that initially didn’t take enough out in taxes, so you might want to be mindful to hold back some in case you get a surprise tax bill next year.

Anonymous wrote:OP here. One elementary age kid, and Grandmother set up a trust for education (very lucky, I know).

These are some very good suggestions, thank you. I especially want to be mindful of lifestyle creep.

Do you receive statements from grandmother’s educational trust?

If not, I’d put half in 529s and half in mutual funds in brokerage account/sinking funds.

I did this for over a decade after getting a verbal promise from Grandma that she would pay for college out of a trust. S is a senior now and has committed to a college and she hasn’t said a word about her “trust” since he was in kindergarten.

If you do have independent verification, check to ensure it will be enough. I’m planning on 400k for our younger son’s college and he’s a few years older than yours.

Ah just more rich people gettin rich eye roll idk id do a whole lot with 5K and I wouldn’t have to think about it, paying my medical bills would be a start. Sorry you can’t for the life of you figure out just how to use this extra money, so sad.

I.just want savings/emergency buffer for once. Every.single.time I think I am on the right track for a buffer something comes up and I get wiped out. It's really uncanny.