Joining the crowd (another "how would you spend" thread)

[honey-lilac]

I just got a check for a 10K inheritance. Here's our specifics.

We're in our late twenties. DH has been unemployed since 2005 and we've been living off his disability check (very low amount) for a long time. There is nothing left over for savings. What savings I did have from before being a SAHM was put into his medical bills and dental work and was completely exhausted.

He and I may or may not split up in the near future. He is set to graduate from school and he will probably find a pretty well paying job soon but again, not sure if we will be together.

We have one really old car that needs to be replaced altogether, not worth anything trade in value. We also have a nice-ish SUV that I guess I would be keeping if we split, but I hate it - I don't like SUV's and it gets like 10 miles to a gallon, and has about 100K miles on it. It's worth a few thousand for trade in value but that's pretty much it.

Retirement savings and the like right now are a joke - there is no "retirement" in the future as I don't work out of the home. I guess if DH and I stay together and he gets a salaried job we will look into savings then.

We own the house outright in a low COL area. The problem is, since we bought it last year in good condition it has really fallen apart ALREADY - toddlers will do that I guess. We would probably need a bunch of money to spruce it up to put it on the market if we were to sell. Needs new paint on the walls, some holes in the walls patched up, new flooring, yard work, etc. If we split up I will probably stay put in this house; if we stay together we will probably move (he hates living here).

What's the best option? I know 10 K isn't a lot but what would you do with it? Is it enough to put in a savings account to get a little interest out of it? Or is it not worth it? Put it in a regular bank account for an emergency fund? I'm afraid if it's too easy to access we will blow it. (Correction, DH will blow it - on something legitimate like more medical bills or something, but it will all disappear into thin air like the 25-30 K savings I had pre-DH.)

ETA: We don't have debt, for what it's worth.

[CrunchyChristianMama]

I would put it in the highest interest savings account you can find so that you have access to it if you need it. Your situation sounds a bit volatile and if you split up and he doesn't have a job, you are going to need an emergency account to get you through until you can find work/childcare/etc.

[zinemama]

Keep that money in your name. Do not let your husband have any kind of access to it.

Put it in an IRA, so you won't be able to get it without a hassle and unless you're prepared to pay penalties on early withdrawal. You ran through 25K in savings once. You don't want to be able to do something like that again.

You are unsure about staying with your husband. From the way you are talking, it sounds as if you don't want to and that your marriage will be over sooner rather than later. There is no reason he should get any part of this inheritance.

[honey-lilac]

Well, to be fair, *I* didn't run through it. I just kind of let him run through it (for schooling, dental surgery, stuff he needed for job training). It wasn't like it was being spent on fun stuff really, but regardless, that money was gone. (It took like four-five years to go through it, so it wasn't like we were burning through it anyway.)

But yeah, it's a good point to put it in my name alone.

Why would you do an IRA? Just because it's hard to get to?

ETA: I also forgot to mention that I'm starting up an online business and it would be helpful to have maybe a thousand dollars or so to spend on supplies/inventory/additional startup costs. But I'm scared of losing it when we have so little to work with.

[EricaDoula]

Maybe put half into a CD (Certificate of Deposit) and put the other half into emergency funds. if you're living ok now without the money, the best thing I can say is save it for when you really need it!

[Cheshire]

Talk to an expert (lawyer, CPA, etc.) - I think so long as you keep it separate from your DH's and any mixed accounts you may have he won't be able to touch it if you split later (you inherited it, not him and even in a community property state I think you can keep it separate). Do not co-mingle it.

Take $1,000 and start your business. Put the rest in something you get penalized for touching but I don't think I'd put it in an IRA. A 6 month or 12 month CD would be good. Then you can re-evaluate your situation at that time and either roll it back into another CD or access if you absolutely need it. Or, if your marriage improves and you are comfortable at that time you can then put it in an IRA.

I'd keep it liquid but difficult to get for a while until you know what's going to happen with your marriage.

Keep on driving the cars until the wheels fall off then replace with a cheap, good ugly car.

[Chloe&Coop'sMom]

I'd put it into an account in your own name so that you have the money if you split up.

[jentilla]

I would do exactly what Chesire said. 1k for biz & the rest in a CD.

[annethcz]

I agree that it needs to be in an account with you name ONLY. Don't put it in a joint account. To start with, a high-rate savings account would be a good idea. A CD would tie up your money, and wouldn't give you a much higher interest rate than you'd find with a savings account. I'd be leary of putting the money in a place where it would inaccessible, especially if you believe that divorce in the near future for you.