Possible promotion...wanna guess the first thing I thought of to do with the money?

[harleyquinn]

I have an interview for a new job with the potential for a very large pay raise ($10K or more).

It suddenly occurred to me that we should totally buy DVC.

Forget that we're trying to save for a new house and deal with being underwater in our current mortgage. We should totally take the increase and buy DVC. Heck we could even wait 2 years and pay cash!

What would you do with a 10K raise?

 

[Alexander]

Uhm, I think I'd get my head above water on my mortgage! And I am totally not a financially responsible person!

 

[harleyquinn]

Uhm, I think I'd get my head above water on my mortgage! And I am totally not a financially responsible person!

Nah! Who wants to be financially responsible on the budget board??

Perhaps my sarcasm didn't come across?

If you want realism:
part of the money would go to the increased commute.
part to taxes
part to a more professional wardrobe
some for a newer car fund due to the commute
rest would go toward new house since we already have enough saved for the difference in mortgage v selling price.

But come on, have fun and spend some imaginary money!

 

[weHEARTmickey]

Every penny on the house Pretend as if you never received the raise, then your mortgage will significantly drop in NO time!

 

[Minnesota!]

I would put 1/2 in mortgage and 1/2 towards DVC

We (DH and I) both just got really nice raises...and this is exactly what I did (Well, 1/2 goes in our general savings, 1/2 in to our vacation account!)

 

[worm761]

I am right there with you. No more trips for us until all debt is paid off. Well, not all. The mortgage and we need a new car so will have a car note too. But other than that, I want to be debt free.

I even have an evil plan to get him to buy into DVC! The first trip I took him on we stayed at Pop Century. Then at All Star Music. Then we had another trip planned and I found a great rate at Coronado Springs. He fell in love and won't go back to a value. This next trip in 2014...I am booking a deluxe! I plan to rent DVC. Hoping that he gets hooked!

 

[taaren]

I would put 1/2 in mortgage and 1/2 towards DVC

We (DH and I) both just got really nice raises...and this is exactly what I did (Well, 1/2 goes in our general savings, 1/2 in to our vacation account!)

This. Keep in mind also that if you buy resale, then you can save a substantial amount on DVC. Depending on which resort you want SSR points often go in the $50 range, BCV/BLT in the $80 range as opposed to $115/pt direct from Disney. Check out the ROFR thread under Purchasing DVC to get a better idea.

Alternately save half of your raise for one year, and buy a smaller contract (perhaps 100 points at $50/pt for 5K?). Then in future years if you enjoy it and want more points you can add more.

Definitely pay down the mortgage, and if you have cash to spare then go for DVC, just have the cash in hand since financing it will kill any potential savings.

We saved for 4 years for a nice wedding, then when we realized what we'd saved still wasn't enough for the Disney wedding we wanted in California, we bought DVC instead. Still feel its a good value for us, and if you go to Disney every year anyways and can book far in advance it really enhances your trips.

 

[cglaura]

Nah! Who wants to be financially responsible on the budget board??

Perhaps my sarcasm didn't come across?

If you want realism:
part of the money would go to the increased commute.
part to taxes
part to a more professional wardrobe
some for a newer car fund due to the commute
rest would go toward new house since we already have enough saved for the difference in mortgage v selling price.

But come on, have fun and spend some imaginary money!

I would hire someone to come in and paint my house (vaulted ceilings!), even though I can do it myself.

Then I would hire lawn maintenance to come in and mow (have to do it 2x a week, full sun, grows really fast) in the full heat of summer.

And I've had my eye on a watch, about $1800. Not that I ever even wear one

Finally, I'd have a replica of my mom's engagement ring made. I love it, beautiful pearls and diamonds, very antique. I'm too afraid to wear it so it sits in the safety box unless a special occasion. Which is sad, wish I could wear it daily, after all, she did!

Practical: I'd put the extra away for retirement and pretend I didn't get a raise.

Good luck on the interview, hope you get it!