Now that my husband’s negotiating group has bartered a contract with his company, we’re finally able to shift some of the cash that we’ve been holding in savings.
Specifically, we’ve been saving money in two separate accounts that are intended to be used for specific purposes.
Instead of spending the money on the intended investments, we’ve been keeping it as a buffer in the event that my husband went on strike.
Thankfully that’s not the case. Now we get to party!
Here’s how we party at Loving Littles …finance style 😉
Pay Down the Mortgage
I’ve written before about how we use both an extra annual and a monthly principle payment for the purpose of paying off our mortgage early.
We’ve been keeping last year’s annual mortgage principle payment in reserve. Now that my husband’s bargaining group has signed a contract, we’re putting that money onto our mortgage principle.
Add to the Kids’ College Funds
We choose to fund our kid’s college a bit differently than the norm. Rather than using a tax-free 529 account, we’ve chosen to invest in mutual funds held in UTMAs. We do this for two reasons:
- Our children are brilliant (of course!) and can apply for scholarships. That, combined with going to a cheaper university (at least at the beginning), and working their cute little buns off during the summers, should provide them with tuition and housing. If not, the UTMA is there.
- We don’t assume that each child will choose to continue their schooling in a traditional University model.
Now that a contract is in place, I’ve pulled these funds from our general savings and purchased more shares in each child’s mutual fund.
With the market dips lately, I got a great deal, too 😉
Increase Retirement Contributions
Our retirement consists of a 401k, Roth IRA, and pension.
We lowered our IRA contribution a couple of years ago when we started to hit the mortgage hard. Now that hubby got a slight cost of living raise it’s time to increase our contribution a smidgen.
We’d love to increase our investment by oodles …but a smidgen will have to do for now.
As we finally complete some financial tasks that have been on our radar for months, we’re reminded to keep those tasks in line with our priorities and perspective.
With my husband’s illness this past year, the recent passing of beloved Uncle, my mom’s subsequent health scare, and two E.R. visits within the past month, we’re really feeling the brevity of life.
When I think about this past year, one word comes to mind:
We’re contemplating King Solomon’s wise admonishment as we strive to match our money with our priorities and perspective.
There is futility which is done on the earth, that is, there are righteous men to whom it happens according to the deeds of the wicked. On the other hand, there are evil men to whom it happens according to the deeds of the righteous. I say that this too is futility. 15So I commended pleasure, for there is nothing good for a man under the sun except to eat and to drink and to be merry, and this will stand by him in his toils throughout the days of his life which God has given him under the sun. – Ecclesiastes 8:14 & 15
Our priority, then, is to glorify God (give him thanks and praise) as we enjoy His gifts.
Paying off our mortgage, funding the kids’ college, and saving for retirement are all for the purpose of reducing or avoiding debt.
Without debt we are much less restricted in our ability to serve God and enjoy his gifts. Isn’t that a comforting thought?
All I’m supposed to do is recognize God’s goodness, worship him (a natural result of understanding his biggest gift), and enjoy the life that he’s given me?
Hello! That’s awesome.
What are you saving up for? How do your savings align with your priorities?
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This article was shared at the Weekend Wind Down & these fine websites.