In one more month my student loan debts will be paid off.
Now we are trying to think of what we should do with that money each month.
We have done fine without that money for the past 5 years.
a) absorb it into our cashflow and lifestyle
b) put it into savings for renovations
c) divide it up into different saving (ie: short term saving and long term savings)
d) pay down our mortgage
What would you do with an extra $1000 per month?
We are a family with two working adults. A 3.5 yr old and newborn twin boys.
My partner is on maternity leave for another 10 months. For 4 more months she has 86% of her income. For the final 6 months we are down to 55% of her income. (we are in Canada).
When we are both working, we make a solid middle class income and live in a very high COL city.
Our 3 yr old goes to daycare and will continue to until my wife's income decreases on maternity leave.
In September she will go to all day kindergarten.
She doesn't cost very much money right now because she is small, not in really any activities and does fine with second hand clothing and such.
The babies do not really cost much because they are breast fed, were second hand clothing, cloth diapers and no childcare.
Obviously our children will cost more as they grow.
We own a 100 yr old home that needs/wants lots of renovations. But we plan to do this slowly over a few years. And we plan to eventually sell and buy a larger home.
We vacation, but only to see my partners family who live on the other side of the country. We fly there on points, but rent a car and go to attractions while there.
We plan to do more vacationing in another 5 yrs or so when the children are a bit older and able to enjoy it more.
We do not have any debt. But have only small savings also.
We do have some retirement savings and pensions.
We put money away each month for our childrens education.
We do not pay extra into retirement savings or extra on our mortgage at this point.