Prioritising jobs for dollars

Hi all,

I'd like to get other people's take on this, if I may.

I've found that I've underspent on a budgeted category for a trip away this weekend, which puts me in the nice position where I have some funds to reallocate, but I'm unsure where to prioritise my money.

All my categories are fully funded for this month, everything is covered.

Debt-wise:

I already have payment goals set up on my two credit cards, meaning that they will be paid off before the promotional 0% rate finishes.

If I put the money in as additional payments, it only brings the monthly goal down by a couple of pounds per month, so I won't really see much of a change in cashflow.

I owe my Mum some money, but this month she suggested that the whole family took a holiday later in the year and so although I've been paying her a regular amount, she says I can funnel that into paying for the holiday and then pay her when that's fully funded. I could however make a token payment just to lower that overall debt. There's no pressure to pay that off.

Despite it only being booked this month, my Wife and I have managed to put a lot of money towards paying for the holiday and so there's only £250 to find in the next three months (with my Mum's deferred payments that's easily covered). I could put the money into that, meaning I get back to paying my Mum her regular payment quicker.

I could put it towards my Car Tax regular savings, fully funding that category two months early, meaning I don't have to fund that for the next two months, allowing me to funnel extra money elsewhere for 2 months, improving cashflow more dramatically than paying extra on my CC debt.

Or I could put it aside to be budgeted next month.

So my options are:

  • Put it on the CC debt, even though it won't really affect monthly cashflow
  • Make a payment off my Mum debt, an unexpected surprise to her, but continues to show I'm determined to pay that off ASAP
  • Put it towards the holiday, so I can get back to paying my Mum
  • Fully fund my Car Tax category
  • Put it aside for next month.

Any thoughts?

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  • Although financially it is not the right priority, I would put the money toward the holiday. Rationale - the money was already for a holiday, just a different one. Also, it is a known upcoming expense that you have committed to already.

    Reply Like 3
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 4 mths ago
      • Reported - view

      MXMOM Pretty much my thoughts exactly.

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      • Tif_Ann
      • Tif_Ann
      • 4 mths ago
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      Yep I agree, given all those I'd fund the holiday and get back to paying Mom.

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    • Voracious Reader
    • YNAB broke is not the absence of money, but rather the judgment that it has something more important to do.
    • Orange_Cheetah.3
    • 4 mths ago
    • Reported - view

    I think they are all roughly equal. I agree with MXMOM that it would make sense to put it toward the holiday, but I don't think any decision would be particularly better or worse. If it were me, I might roll it toward the mom debt, just because moms and dads that help us through rough times are awesome and it never hurts to make them feel a little bit extra appreciated.

    That said, if the trip is upcoming (you said "this weekend" so that makes me think it may be in the future) I'd hold off on giving it to her until after the trip, just because, when I travel, there's almost always at least one expense I forget to account for in my planning.

    Reply Like
    •  Voracious Reader Thanks - I meant "this weekend just gone", so I've already spent the money and found I had some leftover. I even waited a couple of days to check there were no pending payments still to go out.

      In the end I've put it towards the holiday - using the rationale MXMOM said: it's original job was for a holiday, it's new job is still in the same department, it makes sense as there's nothing else more demanding at the moment.

      Whilst paying down the CC debt is nice, I have a plan and I'm sticking to it. On a month-by-month basis I'm not really going to benefit, and it will have a negligible impact on my credit score.

      Thanks all for your opinions :)

      Reply Like 1
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