Author Topic: Advice  (Read 2808 times)

mamaof4

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Advice
« on: February 25, 2013, 09:13:40 AM »
I recently inherited $14,000.  I am debating what to do with this money.  My husband currently owes $25000 on his student loan at 3.2% interest and then we are down to just our mortgage as far as our debt is concerned.  I am thinking either pay down his loan, finish my degree or invest in index funds. I have 2 years left to graduate with my teaching degree.  Teaching jobs in my state currently start at $35000 per year. I am working now as a server 2 nights per week and making about $1400 per month. Following the mustachian principles we have paid off $35000 in debt in 2 years.  This includes a big payout when we sold our home. Any thoughts/advice on my inheritance would be much appreciated.

jpo

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Re: Advice
« Reply #1 on: February 25, 2013, 09:16:50 AM »
I'd bet finishing your teaching degree would be the biggest ROI.

urover

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Re: Advice
« Reply #2 on: February 25, 2013, 09:19:44 AM »
I agree. Finish your degree. Unless you guys have any credit card debt or other such high interest debt, I wouldn't think of anything else.

SunshineGirl

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Re: Advice
« Reply #3 on: February 25, 2013, 11:37:53 AM »
How are you presently funding your degree?

I would keep working and earning that $1400/month. Not bad for only two nights' work.

Done by Forty

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Re: Advice
« Reply #4 on: February 25, 2013, 12:07:14 PM »
Investing the money into index funds is an attractive option.  Even if your degree requires slightly more student loans, the math says to take out a student loan at 3.2% rather than take on larger opportunity costs.

That said, I don't follow my own advice re: my mortgage since my wife and I like the idea of being debt free, opportunity costs be damned.  Any of your listed options are good ones, and are way better than spending that money on lifestyle, vacations, cars, etc.

Sometimes using an inheritance in the way your family member might have approved of is a nice way to honor his or her memory, too.  If he or she spoke highly of education as a worthy goal, you could use it towards your degree or student loans and know that your relative played an important role in that aspect of your career.

mamaof4

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Re: Advice
« Reply #5 on: February 25, 2013, 12:24:45 PM »
Presently I am not in school.  I funded my bachelor's degree with student loans that have since been paid off.  I am in my late 30's and haven't been in college in many years.  My degree is in a field in which I have no interest in pursuing.  I would be going back for a second bachelor's degree. I was a stay at home mom for years and recently went back to work a couple nights per week.  We don't have any debt other than my hub's student loan and our mortgage.