Refund
I am getting a refund of about 5,000 and I need to know what I should do to help further my financial situation. I owe a credit line on two cards about 500.00 I also owe a friend about 900.00. But my house needs about 300.00 in repairs. Also worries about a life insurance policy for me and my husband.
Terry Says
OK, I hope you stated the amounts correctly. If so, this is a pretty easy answer.
1. Pay off your credit cards — and try not to use them again.
2. Repay your friend. You never know when you might need to ask again, and it is always good to be out of debt.
3. You are entitled to use this money for home repairs.
OK, now according to my math and YOUR numbers, you should have at least $3,000 left over — IF you posted the true situation. I wouldn’t be so worried about life insurance as about retirement — unless you have young children who are depending on both of your incomes.
If you do have young children, go to www.Accuquote.com or www.Termquote.com and see how much — actually how little — $100,000 in 20-year term life insurance would cost.
OR if you are working and don’t have a retirement plan at work, you could open a ROTH IRA at the bank and ONLY put it in a one-year CD (which should earn a bit over 1%) but leave it to grow for your retirement.
If you just want to set the “extra” money aside for emergencies, then don’t do the IRA, but just put it in a FDIC-insured money market deposit account IN THE BANK. It won’t earn much interest, but it will be ready for emergencies –if you have the self-discipline not to spend it!
