advice on small inheritance what to do

[TinkTock]

I say invest the whole inheritance in an account you will not touch. Lock it away for a very long time! Keep paying off you credit cards as you had planned without the inheritance money. Yes, it will cost you more in interest than paying them off now, but I would still do it that way. A large lump sum of money is VERY hard to build and so easy to spend. Most people will make sure they pay their bills, but often, even with the best intentions, will not ever completely pay themselves back (or save money) because things always come up. The mindset often becomes if you don't pay the cc company, you get in trouble, if you don't pay yourself, no big deal.

I'm with you. From a strictly numbers point of view, the smartest financial move would be to pay off the credit card debt. However, I interpret OP as saying that if she pays off the credit cards, she'll quickly run them up again spending on anything and everything. In this case, I think it's better to put the money aside and chip away at the credit cards normally. And if it's too hard to resist using them, close them when they're paid off.

 

[Princess Disney Mom]

Pay the cc off and stop using them. Put the money you were paying monthly on the card into savings.

Sent from my iPhone using DISBoards

 

[beansmom]

the most important thing you should do is take $20 and buy yourself a copy of 'The Total Money Makeover' and a cup of coffee and sit down and read this book. It will change your life.

my husband made a quarter million dollars last year yet when January rolled around we had past due bills, credit card balances, no cash flow, we haven't put anything in retirement in years and we have no emergency savings. since reading TMMO last month, all of our bills are current, we have paid $8k in credit card debt off, have an emergency account and have a plan to pay all our debt within 3 months and then we will begin paying off our home. We will be completely debt=free in less than 5 years...including our $600k house. I am willing to hold back a little today so I can be financially solvent later on.

 

[ccgirl]

I have recieved some money and not sure what I should do. I have some credit card debt and I could pay it all off and save none of the money. Although I know that I will use the cc again. should I split it in half pay down some of the debt and save the rest? I would appreciat any advice. I do not have much debt only my mtg along with these 2 cc. thanks Lisa

I would pay off the debt in a heartbeat (after building a $1500 emergency fund). If you think you will use the cards again, I would put them in the freezer in case of emergency. But, with the emergency fund you shouldn't need to use the credit cards.

Take a look at the interest rate and how much you are paying the credit card company every month.

I would take the amount I have been paying the credit card companies and have half automatically transferred to a vacation club account that I could use for fun and the other half added to the emergency fund.

 

[ccgirl]

the most important thing you should do is take $20 and buy yourself a copy of 'The Total Money Makeover' and a cup of coffee and sit down and read this book. It will change your life.

my husband made a quarter million dollars last year yet when January rolled around we had past due bills, credit card balances, no cash flow, we haven't put anything in retirement in years and we have no emergency savings. since reading TMMO last month, all of our bills are current, we have paid $8k in credit card debt off, have an emergency account and have a plan to pay all our debt within 3 months and then we will begin paying off our home. We will be completely debt=free in less than 5 years...including our $600k house. I am willing to hold back a little today so I can be financially solvent later on.

Or better yet, save the money and get it from the library.

Congrats on paying down that debt.

 

[beansmom]

Or better yet, save the money and get it from the library.

Congrats on paying down that debt.

that's a great idea but i think it's a keeper.

 

[Mrs. Ciz]

I'm kind of the opposite. I rec'd about $5000 when my grandmother passed away several years ago. We didn't have any debt then, of course we could have put more in savings, but we spent it on a tent trailer. My grandmother was always about family, and I wanted to put it towards something that would bring us together as a family. I always think of my grandma whenever we are out doing one of our favourite pastimes together, and I will never regret spending it on a non appreciating asset!

I really like what you did with the money. You bought something your family will enjoy for years and years. You are creating wonderful memories and fondly remembering your grandma every time you use it (priceless!). What a nice trubute to her.