Financial advice needed...got a lump sum

[Halcyon]

Okay, so dh and i have been together 12 years, and praise God, he is finally recognizing that... i am right :)

 

Here's the deal: he runs his own business, and income varies a lot. In the past, what we have done is I keep expenses to a certain low amount, and each month he transfers the amount needed (almost always within a certain range) to our joint from his business and i pay the bills. I am pretty much a cheapskate so we rarely have anything outlandish, and larger expense decisions (over $100) are made jointly.

 

I have often said how great it would be if, instead of this retroactive "here's how much i need can you give me the money" approach, he would agree to give me a set amount of money in advance based on what i perceive our budget to be going forward. It would be much easier for me to budget things, plan for savings, and set up sinking funds (a concept he thinks is ridiculous, insistig we dont make enough to save in advance...silly man!)

 

Anyway, he finally has agreed with me. He got a large chunk from a client last week, enough to pay for the expenses that I am responsible for paying (everything except mortgage and insurance, which he prefers to pay directly) for the next 12 months.

 

So now i am like "Huh, what would be the best way to manage this chunk over the next year?" I know what my monthly budget is, and any time i go under that, i throw the remaining into savings. Sound good? Any other helpful ideas?

[Catwoman]

Stick with what's been working for you. Basically, pretend the money isn't already there, and pay your bills as you always do, leaving anything extra in that account (basically putting it into "savings" because you won't be spending it, yet it will still be there if you need it.)

[PentecostalMom]

I'm taking donations. :laugh: :laugh:

 

 

Obviously kidding, but I personally, I would save and pay off debt....if you have any.

[Halcyon]

I'm taking donations. :laugh: :laugh:

 

 

Obviously kidding, but I personally, I would save and pay off debt....if you have any.

 

Thanks! We have no debt except for mortgage. We need money for retirement (who doesnt) but also just need plain ol rainy day money for those times when dh's work is slow.

 

Also, i work part time, and business is picking up. Virtually all my money, outside of business expenses, is going to savings.

[StephanieZ]

You could get an interest bearing money market account and keep excess money in that. I've been happy with Vanguard, but I've also heard good things about ING. Whoever you choose, make sure it is convenient to swap funds back and forth. You could even set up an automatic monthly transfer of your budgeted amount from the MM to your regular checking.