I am about to begin receiving a benefit to the tune of an extra $2k per month that I don’t have a need for. I’m fortunate enough that all my needs are met financially and this is truly bonus income. If it didn’t exist, my life wouldn’t change significantly, and it’s not enough to quit my job. Trying to get others thoughts on what would be good uses of this money that would benefit me and my family.
Thoughts:
- ALL_IN_VTSAX - hit FIRE goal earlier than planned
- kiddo’s college fund - hit funding goal earlier than planned
- do fun things - vacation fund, memories with family
- fund hobbies - buy things I don’t need but “lower-guilt” use of spare funds
Probably a combination of all of the above, but interested to hear the thoughts of others.
I’m also reminded of:
When you have more than you need, build a bigger table.
Curious of ways to help influence things in a bubble larger than my family too.
“Some people need a budget to save; others need a budget to spend.”
My suggestion would be pick a % of your income to allocate as “fun money.” 5%, 10%, whatever; the most important part is you budget it. Stick it in its own savings account, then invest the rest. Then, whenever you have the opportunity to do fun things, spend extra on hobbies, help family, donate, etc, you know exactly how much you can spend.
My father used to spend his bonuses on family trips. Back when we were kids, we had so many great memories with our parents. Father always made sure to take as many photos as possible.
Looking at those photos, makes me I want to do the same for my kids as I loved it to bits, but a bit difficult nowadays with everything being way too expensive.
However, I learned that trips, adventures, hikes, or any family activity builds trust, memories, relationship, and an opportunity to capture a lot of great photos for the future.
Work towards your retirement.
You NEVER know what tomorrow will bring. Imagine that your retirement goal is age 50 but at age 45 you get injured and can’t work anymore. How screwed are you?
If you can retire even a year earlier, then that means if you WANT to continue working beyond that date you can. But if your boss is an ass then you can walk out.
Nothing says you have to continue working or that you can’t continue working. It becomes a choice.
Imagine you retire at 50 but at 51 you are injured and bed ridden. Would have been nice to see more of the world before that happens.
Take care of you.
Save it, for something. Eventually, you’ll know what it’s for.
How old is the kiddo? Old enough to have a creative hobby? Fund that hobby.
- Maybe they like drawing. Take them on a $300 shopping spree at the art store.
- Maybe they like competitive dancing/performing. Spend the money on a trip taking them to a competition in another city/state/country.
- Maybe they like woodworking. Let them buy the tool(s) they need to take their craft to the next level.
- Maybe they like coding and computing. Send them to a kid-centric coding camp.
- Maybe they like making music. Buy them that new instrument or private instruction on how to get better with the one they have.
Whatever it is (that is a creative hobby, not just Fortnite skins), letting them move forward with it can help them grown and succeed in ways you can’t imagine decades from now.
Too young to have any real interests yet. I was considering starting swim lessons, that’s a lifelong skill.
Donate. If you don’t need the money and all your and your family members needs are met, I think donating would be the right ethical thing to do.
Similar boat recently, talked to an FA and am now investing. Also got a life insurance policy and LTD policy just in case…
VT and chill