Spend, Save, or Pay off Debt?
Since we refinanced our mortgage, we had 45 days from the date that we signed the documents to make the first payment. Obviously this is more than the normal one payment every thirty days. Mr. Money got paid yesterday, and normally that paycheck would go towards paying our mortgage. The only problem is, our mortgage is now not due until the 23rd.
I was prepared to use this paycheck to pay the mortgage and now I’m confused as to what to do with it. I still will have to pay it on the 23rd, but by then we’ll both have gotten paid again so we’ll be able to use one of those paychecks for the mortgage payment. I’ve been thinking about taking the money I was going to pay on the mortgage and just make a nice principal only payment. I’ve also thought about putting it towards our student loan and car loan debt. I’m just not sure what to do with it. I asked my boss what she would do with it and she told me I should just go spend it. “You’re young, and you need to have some fun,” was her reply. “Let’s all go out for dinner and drinks tonight.”
When I announced to everyone that I would be buying them McDonalds, her tune changed. I know that I can’t just go out and spend it. That would make me feel so guilty. I think I’m just going to put part of it towards extra principal, and part of it towards the other debt. Then I’m doing a little bit of both and meet somewhere in the middle. And maybe I’ll buy myself a sundae at McDonald’s to celebrate.
What do you think I should do with the money?