Friday, May 30, 2014

Spending the extra paycheck

Don't worry, it's not as frivolous as it sounds.

The back story: DH is in a union at work. A new contract was negotiated last summer with a start date of Aug. 1, 2013. It sounded good. The local union approved it. But this is a national deal and two segments didn't give approval until a month or so ago. Part of the new contract was a small pay raise, but it couldn't go into effect until full ratification. That means that all those months when DH should have been receiving a bit of a raise, he wasn't, and now he is due to receive it retroactively.

That check arrived this week. After taxes etc., it was just over $1,000. Funny how your brain immediately goes to "what can I buy with $1,000?" A few years ago, we probably would have just made a big purchase that we had been wanting but couldn't afford ... not bothering to note that we couldn't afford it then either.

I admit, we will not be putting it all toward debt reduction. We could, we just won't. So far, we sent $200 to American Express (on top of the monthly minimum payment) and put $300 in our 30th anniversary trip account. The other $500 is sitting in checking as a cushion until DH's next paycheck. I don't anticipate having to use it for anything, but I like having it there just in case. We will make a decision on what to do with it soon. We need to replace the light fixture in the hall bathroom, so $100 might go toward that. We'll see.

DS works for the same company and received a check for $1,800. He immediately set it aside for a planned trip to Spain next spring to visit his great-uncle. That's what you can do when you're young, single and have no debt!

Happy weekend all,

Sarah

6 comments:

  1. I remember being young and having no worries about spending an entire paycheck on NOTHING! Those were the days! Good job on the extra paycheck!

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    1. Yes, hard to believe I was once 23 without a care in the world! I keep telling him to enjoy it while he can!

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  2. How wonderful! Good for you. Not everything has to be debt oriented and that is what keeps me going.

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    1. Hey, Kim! It's hard not to make everything focused on debt, but you're right. At least now we're in a groove and able to throw in something fun every once in awhile, even if it does delay the payoff. I think I'd be more apt to skip the fun if the debt wasn't so high and I didn't know that regardless of how hard we work it's going to take a long time. One day ....

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  3. May I ask why you chose American Express to receive the extra $200? I see on your "Sarah Owes" tab that Bank of America A is the debt with the lowest balance. Is American Express the highest rate debt you have?

    Just curious. Thanks!

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    1. Hi! Yes, Amex has the highest interest rate - like high teens (I'd have to look it up but it's bad). The BOA and the Chase accounts are closed and on balance liquidation programs (BLP) and will be paid in full in a little less than 2 years at interest rates of 2%-5%. The Amex bugs me the most, so I've been trying to snowflake to it when I can. Thanks for asking!

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