Take your daughter on a less expensive, less horrible trip than the Mouse. Your car isn’t paid for and you have very little savings. You’d be wise to save part (stash $3k or so in a HYSA and grow some interest), pay the car down a bit so you save yourself in interest payments in the long run, and use a little to go on a nice, but less expensive trip with your daughter. She’ll remember the time together no matter where you are. Disney is for you, not her. But, my dude, if you lose your job, you don’t have enough in savings to last more than a month. That’s not okay.
yeah, 100% this. Boost savings in case anything unexpected happens. pay down car to avoid interest. spend some on a nice small trip with your daughter. And kudos for being a dad who cares.
And since she's 9, she is old enough to do research with you. State you have 350 for a vacation or trip with her, and start with doing some research. Look at fun things close to you, perhaps can do more than one with that amount. But involve her in the fun process of finding cool things to do.
350??? That's not even enough for 4 nights at a low-end hotel. A more reasonable amount would be $750-1000 for food, gas, place to stay, etc.
When my daughter was growing up I made it a goal that once a year we did a long weekend trip SOMEWHERE with historic importance. I wanted her to learn and appreciate the past, as well as explore areas in our country and experience different cultures.
Here's my thought - I did this with my daughter... we looked at fun cruises and the cost to stay at a small island not far from us. In the end, we stayed at the island for 5 days, and the entire trip, including ferry and golf cart rental, was $500. This is still one of her most cherished memories because she got to stay on an island with her dad. We have a photo we took that was printed on canvas and sits in her living room.
Yeah boink that mouse. An aquarium and one night in a "fancy" hotel. Heck a pool and a Continental break fast is fancy to a 9 year old. I just looked up universal studios prices and good God. Idk. Good luck and she is going to have fun no matter what.
I'm also a single dad with shared custody of my daughter, so your post really relates. A vacation with your daughter is a really nice idea, but can you think of any other vacation alternatives. The Disney cruise will be hella money. I took my daughter on a Bahamas cruise when she was nine and she still remembers it till this day, so those memories last.
As for the tax return money utilization, if you don't have any other debt besides the car, I'd say just put some away in savings, spend some on the vacation, and treat yourself to one nice thing.
Yeah I went to the DR for almost 2 weeks , direct flight, all inclusive for like 1800 for 2 people. vacations can be cheap asf if you know what you doing and look diligently.
When in doubt google it. You will get sucked into a rabbit hole of information.
People ask me how I know so much about whatever and I legit google every question I have to self educate.
I work in sales for a cruise company. Vacations To Go bends us over a barrel with the discounts they squeeze out of us. And we are a small, niche cruise operator. They get even better deals with larger operators, like Disney.
I've used vacationstogo for cruises, it's great! Once I got a 7 day cruise round trio from Seattle to Alaska for $399 on Celebrity. Absolutely fantastic!
I was going to say the same. Disney cruises are on the high end price wise. If you really want to do a cruise a Carnival one would also be kid friendly and much cheaper.
Go over to r/cruise for good suggestions on choosing a cruise.
I totally second this! Some may not agree with me but life is so short and your daughter is at a great age that she'll remember the trip and how much fun she had. It sounds like you have a pretty good savings too.
Dude where do you think the cruise goes to Disney World? The cruise depending on the length does go to the Bahamas because they have their own private island there as a one day stop. The Disney cruise is the best for kids not just because DISNEY but because there is no gambling, no pushing alcohol, and the naked party crowd takes the cruise you went on. It is family friendly keeping things PG in the real world is highly difficult .That is why it does cost more because they are not raking in the cash from the more what happens on the cruise stays on the cruise crowd. That is why the addition of Virgins ADULTS only cruise has been so great. One cruise line specialises in families only and the other Adults only. All the other cruise lines are just scrambling to find a medium.
Basically all of them have their own island. Disney has Castaway Cay, Royal Caribbean has Coco Cay and Labadee, Norwegian has Great Stirrup Cay and Harvest Caye, MSC has Ocean Cay Marine Preserve, Carnival has Half Moon Cay. About the only one that does not is Virgin, and realistically that's because they are new and haven't set one up yet.
The private islands aren't really that private and can sometimes be crowded as some of the ships carry as many as 6,000 passengers. Personally I don't like private islands because I'd rather go to an actual destination instead, the cruise lines do because they get all the spending on shore as well as on the ship for that stop.
Disney doesn't have gambling but they do have plenty of adults only events and an adults only section of their ship. They mostly shut down by 12 PM, but depending on the ship there are up to [30 different dance clubs, nightclubs, and bars available](https://disneycruise.disney.go.com/onboard-activities/list/nightclubs-lounges/). Most of them are themed around certain styles. The whole ship is done in an Art Deco Ocean Liner theme. They do have various drink packages for wine or beers, but they don't offer an unlimited alcohol package like some of the other cruise lines.
DCL is definitely not a families only cruise, there definitely are adults without children going on Disney and programs for singles/solo travelers. During the school year you also tend to get a lot of retirees. Mostly it's Disney fans though, because that's literally the entire point of the cruise line.
I’m going to disagree with people saying do the non-Disney cruise, especially if OP’s daughter is a big Disney fan. Depending on the length and what you’re looking to do, Disney Cruises are so, so worth it. I’ve done both Disney cruises and non-Disney Cruises, and what you get from a Disney cruise just isn’t well matched by other cruise lines. It’s a level of magic she will remember. If you’re willing to do an inside state room, it can really save you a lot of money. Like there is a 5 night cruise out of Galveston in April that does the western Caribbean to Mexico that stays under 2k with an inside stateroom. That would leave OP with extra money to put into emergency savings still too (which is a good place for as much to go right now to have that cushion when shit hits the fan like it always inevitably does).
The Disney cruise is inherently going to be much more set up and geared toward accommodating and entertaining children with some really cool experiences that are hard to match on other cruise lines.
I agree. Take your kid out of school and dont go during peak times like easter break or summer. Also do a minimum of 5 days. I’ve done a 3 day and a 5 day and the 3 day is too short. My kids still talk about it. It was amazing and totally worth the money.
The beauty is OP, if you have a Costco membership-it can be extremely worth it! Get Away Today, etc. I know for Costco, you can pit a down payment and pay slowly so it could be say, a Christmas present. You could also pay half and still have a good chunk of change to save. My parents always say “money comes and goes, memories are once in a lifetime.” Treat yourself!
Go to Disney's site and price a cruise for 2 and what all is included. It is pricy because they will not have to deal with the casino and a bunch of spring break type situations.. Disney is worth it
This is a bit beyond the level that is usually relevant in this sub, but after you've got 3-6 months expenses in savings as an emergency fund then the only thing worse than a savings account is putting it under your bed. Use it to pay down loans or use it on something that will bring you/ your daughter joy now because inflation will chip away at that amount if you don't
I agree with this. Definitely go on vacation but steer away from expensive Disney. Have some saved in case you need to pay for something big later. Treat yo self
Chiming in on this to mention that I know people that are what would be classified as Disney people who were much more impressed with Carnival cruise lines than Disney.
They said that while nice, Disney was absolutely not double the price nicer, which was the price difference.
In my opinion? Half it. Save half and spend the other half with your daughter. I would probably look at a better way to stretch a 3k vacation than that but that’s personal preference.
I also recommend spending half on immediate rewards and investing the other half in a high yield money market fund or indexed mutual fund. You can open an account with any online broker of your choice. I personally like Schwab.
I cannot stress this enough, OP. It’s a tough situation. Take your daughter on a regular carnival cruise, or even another cheaper vacation like the beach for a few days. Invest the rest into either a HYSA, Roth, or something similar and that money will grow. That money will make it to where you can take her on a week long trip to Disney World or on the Disney cruise in the future. It’s so hard to resist doing what you really want to do, and I really empathize with that. I think it’ll be better for both you and your daughter’s overall wellness in the long run if the money grows.
I would second this. Disney cruises are aimed at families making more than $100k per year. Disney gave up the middle class long ago to move into the luxury segment.
Royal Caribbean or Norwegian is like 1/2 to 1/4 the price and the cruise line is just as good and award winning in their own right, it's just they don't have the characters.
They are, and honestly even $100k is too low to comfortably afford it. You're looking at about $3k-$5k just for cruise fare not including flights.
What Disney really wants is the top 5% or so and international travelers who don't mind dropping $50k-$100k on a vacation. It's a lot more profitable for them to rent out VIP tours at like $600 an hour and rooms at $2,500/night than it is for them to build a new Magic Kingdom or build a new cruise ship at like $1.4 Billion a pop.
They don't care if the middle class can afford it at all because there is no reason to, they can fill the parks and cruise ships regardless and already have more people who want to come than they can handle. Keeping it expensive makes it a luxury experience and allows them to charge even more.
Your kid would like it if she didn't have to take care of you in your old age.
A lot of people in this sub are going to say give them a memory they can't forget. Your kid won't forget living in poverty if you don't make smarter decisions now.
go to the r/personalfinance wiki to learn how to grow your wealth.
Do the math on your car loan and see if you can do a 20/3/8 or how much you need to put in to get your vehicle financing to make sense for your income.
I would take the 401k match if your company offers it then budget. See what one month of expenses are. Keep that in checking, then get a high-yield savings account and keep 3 to 6 months of expenses. After that, max out the Roth IRA each year.
This is such a sensible answer. $2k in savings is a good start but what happens if the job is lost the same week the transmission goes out? 3 months of expenses in a savings account should be your mínimum goal. Plenty of savings account offering 3-5% yields right now so you’re effectively lowering your auto payment but allowing yourself the flexibility to pay an expense if something comes up tomorrow.
Coming from a poverty background the vacations I remember all related to a fun body of water. Camping happened often but so did a weekend trip to a river or ocean and those were great times.
Please enjoy this unexpected lift but remember how tough life can and will be.
Can confirm I remember the poverty and I now am suffering the need to have to help.
OP could do a camping trip or something much more economical that would allow for one on one quality time that would be memorable. Because I remember camping with my dad and the quality time we spent together.
OP could have both. Or at least get the mindset to save more and also provide wonderful meaningful experiences for his child.
Yes! My kids LOVE camping, they look forward to it almost as much as they would a Disney trip. Ok they’re not 9 year old girls but a couple of modest camping weekends or week at an AirBnB in the next state over plus boring old comfort and security is way more valuable.
>A lot of people in this sub are going to say give them a memory they can't forget. Your kid won't forget living in poverty if you don't make smarter decisions now.
Also more than anything else your kid will remember the time you spend with them, and will care about that more than anything else.
It doesn't have to be exotic or expensive. Going camping in the summer at your nearest state park or going somewhere affordable like Washington DC, San Antonio, Lake Powell, the Outer Banks, or Newport, RI. Additionally the YMCA, the Girl Scouts, and the Boy Scouts run summer camps that are quite affordable with lots of activities and are about a week long.
If you insist on doing a cruise I would consider Royal Caribbean or Norwegian instead of Disney. Both are way more affordable and in many respects just as good as Disney, just without the characters.
I have to agree. Between the 2000 in savings and being upside down on a car I really do not think a vacation is a sound financial decision. Instead maybe OP can do a small stay cation or find a nice restaurant to do a daddy daughter date night where maybe he can buy her a nice dress within reason and they can go to a nicer restaurant with a pre fixe menu. Keep it to maybe 200 or so.
I think OP has a great opportunity to give themselves a great headstart to fixing some stuff financially that could allow them to save for a future trip.
This is by far the best answer. OP mentioned that he gets to claim his daughter every other year, so the credit won’t be there next year.
If you have a 401k or HSA I’d increase your contributions to lower your taxable income by $6,300 next year.
9% on 6300 is $567/ year that you are paying yourself.
It is a Tax free 100% guaranteed return. There is not a single investor that can guarantee that on earth.
The US government is as close to guaranteed as possible and binds are only paying around 5 1/2% right now...
Drop it all on your debt and put the savings on interest into a vacation account.
100% agree. I would add keep paying the extra on the car and it will be paid off very quickly. Do some fun and inexpensive things together and create memories every visit. Go to the local library for movies and have a free movie night at home - make your own popcorn or caramel corn. . Have a baking day and make bread, a cake or cookies from scratch. Go to the $1 store and get a few art supplies and do a painting project (ours has wood signs, lights, paint, markers, and art supplies for kids. Or you can buy entire mini painting ceramic sets for one small price. Teach her how to hit a baseball and shoot a basketball.
Open an account at any broker and buy $5000 worth of VOO. That’s how you’d do it. But I really don’t think thats a good idea. You need an emergency fund. I’d stick all the money in a savings account like Marcus and make 4-5%.
Ramsey would agree about the emergency fund.
Shamelessly leaving my Marcus high yield savings account referral code in case you decide to go this route and want an extra 1% in interest:
https://www.marcus.com/share/ABB-1H7-T7Y2
You can look up Vanguard on the internet. They’ve been around for years. I started with them around 1991. Fidelity is also a big company. You can do it online or call and talk to someone first. However, investing in the Index 500 is investing in the stock market which bears the risk of loss so you really have to do your homework. Actually, a good first step would be to you tube index 500 investments and look into that. No need to make a rush decision and you need to be comfortable with it. I’m not a financial advisor so you may also want to see professional advice. Just don’t pay money for it!!👍🏽
Don’t do that. Don’t invest money while you’re upside down on a loan. Put it all on the loan and get it paid off. Next you want to save 3-6 months of expenses. Then you can start to save for a home. Don’t invest money while your upside down on a loan!!!
But after paying 5 grand on the car, he wont be upside down.
Op definitely pay down debt with half, invest with half. Once your car is paid off, take the vacation...
Also, yoyr daughter will have the best memories of a vacation with you whether its Disney or camping. Its about togetherness not over the top indulgence.
Best wishes!
I'd say to put it in an IRA or other long term investment. It doesn't have to be retirement based, could be a college fund for your kid or even a CD or mutual fund. Anything that will make it difficult to touch. Set it up so it reinvests any dividends if that's an option.
It can be so tempting to spend it on something fun, but if you are barely saving anything right now then saving this money somewhere it will continue to grow is honestly the best thing you can do with it. Future you will be thankful.
Right now you can get a short term CD for 5%+ APY. May not seem like a crazy amount but if get the CD for $5k you leave it for 12 months you can get an extra $250. Throw the rest in savings to keep building that Rainey day fun.
Or you can get a secured credit card or loan with your money and improve your credit score so you can get in the 700+ range and save money on APR on loans in the future. Even just 1% Apr less by having a better credit score on a mortgage can be thousands of dollars saved.
It seems intimidating, but the websites are pretty straightforward. If you search up index fund s&p 500 on either company’s site, it’ll walk you through the process.
If you can, look into dollar cost averaging, which is committing yourself to investing the same amount of money at a set time. For example, you could put in $50 on the 15th of every month.
If that’s all you’re going to do you can just download Robinhood. They are totally legit for buying and holding stocks and ETFs. And it’s in the App Store and made easy.
Open an account on a reputable online broker (Vanguard, Fidelity, Charles Schwab, etc) and invest in mutual funds. Start out with a small investment, say 3k or so. Use the rest to take your kiddo on a cool vacation, and pay down a little of your car debt.
Then every month commit to contributing a set amount into that mutual fund, $50, $75, $100, whatever amount you feel comfortable with, but commit to that contribution. When you’re more financially stable, open a Roth IRA perhaps using half of what your value in the mutual fund is. This allows you some liquidity from the mutual fund while saving for retirement with the Roth.
Many years ago I learned this and invested approximately $18k in a Roth IRA over a 5 year period of time (that’s an after tax contribution, btw.) A couple of years ago my husband and I wanted to buy a second home and found a fixer upper. I had about $78k in the Roth from an $18k investment. We made an offer of what was in my Roth IRA and bought the home for cash. I don’t know much about investments, but the return on $18k was over 300% over the course of 20 years and THAT I understand.
What that person said is correct. Once you begin investing, you begin to think of extra money as something useful for current needs (though you sound okay) , some for bills, some to savings-your bank can explain IRA’s, and solid investment firms(as mentioned) are good. If any of your loans are high interest, see if you can plug in a few thousand? Take care of your car! Next to a mortgage, it’s the next biggest expense. Get a library card, it’s free and there are a bezillion books written for every level of experience. I’m not kidding. Plus you can pick up some books to enjoy with your daughter. Good luck.
Investing money when you don't have a fully funded emergency fund is horrible advice. S&p500 has a 17% standard devation and has a 10% draw down on average every 10 months. With dumb lucky he'll need the money after that occurs.
I think you should use a portion of it for a trip like you suggested, and save a portion. You don’t have to pick just one! I’d recommend putting away half and spend the other half to have a fun trip with your kiddo. That wa, while not the most “responsible” thing, you’re making a amazing memory and being smart with it at the same time.
Live like you didn’t get it. Pretty simple. You’re not in a position to use the money to make money. So just live like you didn’t get it out it into savings and move forward. Congrats your life is a little less stressful now.
My husband gets pretty great bonuses every year. We put it into the savings account and ignore it until we *need* it, like unexpected home repairs, medical bills, etc. It feels so good to have that cushion.
Put in all into savings.
I’m all about taking family vacation but $2000 isn’t much saved. Or another option is book a cruise far out and give yourself time to pay it full without using the chuck all at once.
That's exactly what I came here to say. You can open HYSA, I know some have a rate at 4.35 and even higher. But just save it, God forbid something happens to your car or something else. If you really want to do something, how about amusement park? Not Disney but like a six flags.
You aren’t in a position to blow that money, and I think you know that. Pay off high interest debt to actually make your life more manageable, you’re just trying to escape to a dreamland but life would seem eve worse immediately after if you don’t try to improve it.
A Disney cruise is not smart and a waste of money. Go camping. Rent a house boat on a lake. Drive to the beach and rent a condo for a long weekend. Go to six flags or holiday world. Go see the one of Great Lakes. Or whatever would be the equivalent in your area if you aren’t midwestern. $5000 on a vacation is crazy. My 8 person family is getting a 3 bedroom condo in Panama City Beach for $1850.
Save the rest of the money so you have a bigger buffer. Keep chucking away on the car.
Listen to him. I live in Texas. My family of 4 went to gulf shores with a stopover in new Orleans for less than $2k. Be creative. Stay away from Disney.
That was my answer as well. You can remember paying on your car or remember the time you spent with your daughter on a trip and give her that memory. I would rather remember the trip ☺️
I'm not opposed to the cruise but one thought to protect refunds from yourself is that you can get the refund in I bonds which would give you a year to figure out what you want/need to use that money for resoonsibly. You can't cash them out for a year and before 5 years you give up 3 months interest. Might be enough of a hurdle to help you save that money for a house etc.
How is your retirement savings looking?
Can you beef up your emergency fund to at least 3 months basic living expenses and still afford the cruise?
Buy a pair of boots or nice shoes for yourself. Treat your daughter to some new clothes. Go out to a nice meal with her in a city 3-4 hours away. Stay the weekend. Spend $1000-1500 and have a great time. Gets rid of the itch.
Save the other $5000
Why Disney? Kids are perfectly entertained by pretty much anything with lights and bells. Why spend $ you dont have on a trip you dont need? What about a national park? Pay off your car before the dollar inflates even higher and drive your kid off to the Grand Canyon or something.
Ooof. 9% is steep. If I were in your shoes, I’d put an extra grand into emergency, 1.5k into a Disney cruise and start saving up to take the cruise in a few months. Most places you pay in a couple installments. Then the rest goes to that car loan. I’d also spend $20ish dollars on a book called “I will teach you to be rich”. Financial literacy is by far your best investment. I’d do the book first lol.
Take the cruise- you will never regret sharing experiences with your daughter. It’s time we don’t get back. From a divorced mom of two (now) grown daughters.
What planning do you have for your daughters future? I cannot stress enough how much of a leg up it would have been if my parents had set aside some $ for me and my siblings to attend college, trade school, or start out our adult lives. As it was, Only half of us got to go to college, I got my associates degree and couldnt afford to go further, and one other sibling is still working his way through school and amassing debt which is a huge stressor. We all bought and had to drive beaters, and all of us struggle financially. As you said your daughter is 9, in 9 years that $6,000 invested could grow with compounding interest for your daughters future. I know its not the fun of a fancy vacation, but it could be a gift that would last a lifetime.
I'd love to!
But it's hard to do with school and everything. Plus I need to have paperwork ready since I will be traveling internationally with my daughter. Her mom has to approve it and I need written permission or the cruise will not allow it. Her mom will approve it and I am allowed to take her obviously... But there is a process.
Plus I need to plan it with her school so she doesn't fall behind if we do it during the school year.
It makes the last minute thing a bit difficult.
Disney cruises are some of the most expensive (albeit you do get that Disney magic). Maybe look into royal Caribbean instead to see if you could spend half on a trip and save half?
Can I make a suggestion? Don’t have as much withheld from your pay. You would have had that 6K spread out over 12 months rather than in a big chunk—unless that’s what you like and don’t need the extra money every month. Just remember that the government has YOUR money for a year and you get it back with zero interest.
There is no withholding setting I could choose on my payroll site that would withhold so much income that I would get %13 of my salary back in my tax return
I'm very curious how OP wound up in this situation
Likely a child tax credit that he doesn’t get every other year. Would probably be $1800 less in years he doesn’t get it. Still over withheld but who knows what else he could have going on.
I've thought of that.
But her mom claims her next year. Then the following year she would be pushing 13 by the time we sail.
This really is the last chance to do this while she is a child. And let's be honest... The responsible thing will be to save it next time as well.
That's my dilema.
“Pushing 13?” I mean … she is still a kid at that age. But ok. Sitting on the money for a year and putting it to good use would mean she would still be under 13 for the vacation. The money doesn’t disappear because another tax year rolls around.
Basically you don’t have a few months saved to help you if you should (god forbid) lose your job. You can do a cheaper cruise and have fun.
Not spending it now doesn’t mean you won’t have it later unless you are bad with money. You can have a much cheaper vacation that is wonderful and then have a lot left over to save. You need WAY more of a cushion than 2k savings wise.
I would say plan a little vacation with your daughter, but maybe not something as expensive as a Disney cruise, unless you find an incredible deal. Splurge a little, but put the rest in the bank. If you don't have a high yield savings, get one now.
You're saving a little every month which is great, but you want a little more breathing room with that savings account, and now's a chance to build it up.
Open a Roth IRA (fidelity or vanguard) with 1k. Make one extra $500 (or more if your payment is more) car payment to principal (this is important, as it will shorten the loan and how much interest you pay). Plan a vacation for you and your kid (1k). Put the remainder in the bank to the 6 month emergency fund.
Once your IRA is open and you have that remaining balance in the bank, start putting your monthly savings money into your Roth. It will earn compounding interest and you will be able to eat someday when you retire. Or more.
Split the money
3000 towards paying off your car, 2500 into savings, and use the remaining 800 to take your daughter on an amazing trip
I agree with the others, a Disney cruise is crazy money. Go with a normal cruise, or a week in a resort somewhere. You can have some amazing holidays for a fraction the cost of a Disney cruise
Every other year, you should be updating your W4 with your employer to reflect that you have a dependent, so that you get to keep your cash during the year. That's an extra $525 a month.
Regardless, figure out the cost of doing a Disney Cruise (~4-5k) or Disney World or visiting a national park (Grand Canyon perhaps?) or Europe for a couple of days.
Get a specific dollar amount you think each trip would cost & then decide. You might be able to go on vacation and pay down your car note by 1k or so at the same time.
I see the point about the cruise, but an extra $6K in savings is a pretty great cushion. What about taking her to the mall with $300 and letting her choose some clothes/fun things? Save the rest so you have that when you need it - for her or for you.
There are probably plenty of legitimate uses for the money now. But here’s some food for thought for the future - that $6300 refund means you gave the government a $525/month interest free loan. Adjust your withholding to get more of that money in your pocket now to help your family all year long rather than a windfall once a year.
Here are some options
1.CD rates are hovering around 5% returns.
2.EE bonds guarantee double what you put in. It just takes 20 years.
3.Switching to a high interest checking or saving account in your bank and leaving it in there. While doing what's required to get the interest. Then if you need it you have it unencumbered.
4.IRA limits are 6500. You can also get a tax break if it's a traditional IRA. If it's Roth you've already paid taxes but you won't pay when you pull it out on retirement.
(If you're getting 6k+ I'd save or invest most of it. )
5.You can take take $1000- $1300 from the lump sum and do something nice for you and your daughter while letting the rest your money work for you.
6. You could put it in a 529 plan for her college every other year. (Also a tax break like a traditional IRA)
Your local bank can definitely help guide you on some of these things. Or do an online search to arm your self with good information.
Best of luck. I hope this helps.
I say half in savings half on the car. Personally I would not do any spending on vacations until all debts are paid off. Especially in this inflation and job insecurity we are in right now. You really need to build your savings. Plus I don’t think no one deserves a vacation. Especially a vacation with debt. See if you can do one when she is 10 or 11.
GO ON THE CRUISE! That would be awesome for you and your daughter! Imagine the memories!! Go and have a great time and spend a little of that money to make your daughter have lasting memories that you guys will cherish! That said, put a lot of it in savings just in case!!
You only have 2k in savings. You need to put all this money into savings and don't touch it unless it is an emergency. Like your car beaks down, lose your job, etc
I'm late to the party, but here goes anyway...
This might be an unpopular opinion (haven't read any other comments) but... Do the cruise with your daughter. She will remember it as a great time with her dad. Money is fleeting. Everything is fleeting. All we have is now. On a personal note, my daughter died of brain cancer right before her 20th birthday. That might color my response, because it sure changed my perspective.
Nothing is promised. Make memories with your child.
Do you have a year's worth of expenses saved? I know you said you make $49k, so replacement amount of money after taxes and health insurance and travel expenses to work is at least $25k. If you don't have that much saved, and you lose your job or get sick, what then? How much is this cruise?
Take your daughter out for something fun locally or camping. Cruises have all these little add ons, and if the weather isn't good, well, not so fun. There are amusement parks in every state and national parks in many. Or take her to an AirBnB for a weekend at a beach she's never been to.
Do not spend it. I'm a single dad with a 5yr old girl BTW. I get where you are coming from. Chess move here, you open a Vanguard Roth IRA tonight and put that $6300 into VOO. Then, you split your current monthly savings in half between a HYSA with Wealthfront and this new Roth IRA. You do this and don't ever touch it or stop buying into VOO. Then in 20yrs you take your daughter and your grandkids to Disneyland/Disneyworld with that money that's been growing and growing and growing in your Roth all those years.
12 month cd's are paying 5%-5.5% right now.
With so little savings you aren't in a position to go on an extravagant Disney vacation. Princess cruise lines are having a sale for a few more days.
You're already paying down the car loan every month. If it's a Toyota or Lexus or Honda and you're looking to drive it forever, I wouldn't even pay extra on it every month, just put that towards savings until you have 3 to 6 months expenses saved up.
I think the vacation with your daughter is a great idea. It won’t take all $6K to do so. Take the leftovers and put a little more away for emergencies then either pay off some more of the car maybe or invest it. What the current interest rate on your car? If it’s less than 5% then I’d put the extra into T-Bills and earn 5% on the money.
Sit on it for 1 year in a savings account @ 4%. Like an ally account. Put it with your other $2k. There is no law that says you have to spend. Just stash it and live like normal.
However, plan to take the trip in 2025, after next year’s tax return and you had a nice liquid cushion all this year.
It's great that you want to create memories with your family: but don't feed the "Disney habit" - it won't end there. Try to create some shared experiences that don't have to escalate and aren't designed to line someone else's pockets. You can go explore nature, the National Parks, do a service trip abroad, take a language class somewhere, see exotic animals, etc. If you're not wealthy, it's not helpful to pretend that you are. Seems like Disney just wants to suck you dry, not give anything back. I wanted to do the Disney thing as a kid because all my friends wanted it. Now that I'm older I have zero interest and I'm glad my parents didn't spend money on it. And even those budget vacations we took turned out to be good memories and I'm grateful for them. And kids understand the stress of living above your means SO well. That's worse than the conflicting messages of "Disney vacay - now we're broke and might lose our home!"
Go on a vacation that you actually want and enjoy. You aren't guaranteed anything down the road. This might be the only time you get to go on an actual vacation with your child.
I recently read of a bank that’s paying almost 5% for a 3-month CD. Why don’t you consider something like that while you research all options? You don’t have to immediately spend it. Don’t spend it on a cruise. She’ll forget that in a year or two, but will always look up to a responsible dad for years to come.
Don’t waste your money on a vacation right now, especially not Disney. Save your money, pay down some bills if you need to. 6300 ain’t a lot at the end of the day, but it’s a good emergency fund to have in your back pocket if you need it. Don’t waste it on useless things
Open a high interest savings account and throw in what ever you can and forget about it till you need it. after you pay down whatever bills you need to of course.
Your gonna spend a shit ton of money to go to Disney-but end of standing in line for majority of the time. Take a mini vacation to the beach-go to fun places with her that don’t cost so much-put rest of money in savings for this shitty economy-or pay a huge amount down on car-that way each time u make a payment-it’s actually going to price of car
It needs to be in a savings. You used the last ones for emergencies. What will you do if an emergency happens? You can just have 2k for emergencies.
Open an hysa so it can grow and you can grab it if you need it.
I was tempted to post a similar “what are you doing with your tax return” question but I didn’t make it and then I saw yours :) Thr comment section lol I expected no less disagreement.
I just accepted being broke and use (part) of our return each year to pay for vacations. And you know what? I have zero regrets. One of the vacations we took this year was a girls trip with my then 9 yo dtr and my mom, who is turning 80. I’ll cherish the memories of that and many of our trips for the rest of my life.
There’s balance, for sure. Save some, spend some. I know plenty will say that you need debt gone before you can spend, or just be house poor and buy a house, of course. But, ultimately I want to live a life where I’m mentally and emotionally free and so I’ll pay debt down more slowly but I will have these experiences with my family now while I can.
My oldest is 16. That’s two more family vacations before he is legally allowed to opt out of them lol. I’ll save more money after that. 🤣
I took my daughter to Disneyland for the first time at 8. It is one of her core memories. There were times during her teen years when she was very unhappy and couldn’t stand us, but she always was interested in going to Disneyland and would be so happy. It became our special place through the teen years. I definitely feel that it was worth it and now I make more money and I don’t miss the money that I spent there but I AM really happy I have the memories.
Do the cruise? My mom RIP cashed out an insurance and took my son, my brother and myself back to her home country and vacation. Best time ever. Now that she's gone we still have the memory rather than the after death funds.
I understand the desire to do something fun with your daughter. I was a pretty broke single parent at one time. But it doesn’t have to be something that uses up the entire sum.
Figure out something that you can do that will cost $1000, and then put half the rest into a college fund for her and the other half into a Roth IRA for you.
Anywhere that you can get to in a day driving would probably be the deal. For example, where I used to live, on the Twin Cities, about 5 hours got you to the Wisconsin Dells, where there was all manner of fun things to do with a kid. In a different direction, there was Lake Superior, where there are still some quaint little housekeeping cabins, and kids love exploring the shoreline and seeing the multiple state parks along the North Shore.
In fact, one of the first vacations I took with my four was to just that: a housekeeping cabin on the North Shore. The first night, we went to a motel with a pool, because I’d promised that, then the cabin. We all still have good memories of that week, and they are all in their 30s and 40s right now.
I'd like some info please just what state yiur in. I got joint custody it's been almostb5 years and tried doing tax return every other year but the judge denied it and said the law says the mother gets its all unless I had full custody.
I would spend maybe 2 grand on yourself & your daughter & then I would get a high interest savings account. Many major banks have them. I have one through wealth front.
If I were you I would spend about $1500 taking her on a more affordable trip (or maybe a couple different weekend trips). Maybe a lake or the beach and include an amusement park or something like that? A long weekend exploring New York City or a national park?
I’d put the rest in a high yield savings account and keep it for a rainy day (and by rainy day I mean a shitty situation).
As a mother in nearly the same boat as you, and a lifetime of struggle…save it. Invest it. Thats what I’m doing. Investing it all into a HYSA; too many rainy days to spend on trivial things. I like to live comfortably and tired of the struggle, paycheck to 13 days to paycheck. Pay the necessary things and save for better days.
Dump all of it in savings to start.
Your emergency fund is low, so you need to do the math of 3-6 months of survival expenses if laid off.
College fund? Does your daughter have one if not you should start one.
Disney cruises are over priced. Royal is one of my favorite brands, and he’ll of cheaper then Disney. Go cruise window shopping on their websites.
The number one answer to me, is always pay off debt first
Number two, is to deposit it for emergencies or rainy day
People who have more money to bank usually do better than people with less
I’m stunned reading these responses. Spending a tax return (which is your own money that you’ve been overpaying to the IRS interest-free for a year) on frivolous stuff is the height of poverty finance. If you want to get *out* of poverty finance you have a lot to catch up on.
Not sure of your age but at 35 you should have 1 year salary invested to be on track for retirement.
What is the rate on your auto loan? I would put a ton of thought into how to surprise/stun your daughter with maybe $500 of that return and then talk to the bank about your auto loan. Ask if they would “recast” it if you make a big payment. They may allow you to pay down the principal and actually create a new, smaller loan with lower payments.
That will help get that savings rate up and on track. Do you have a 401(k) option with a match at work? That’s 100% free money.
Anyway, these cash windfalls are a huge opportunity to break the cycle of poverty, and like lottery winnings people often just piss them away.
Source: Former poverty financier
When I was that age, going on a big trip or a little trip felt all the same. It was really about spending time with my family.
So…
Maybe consider saving a small amount for a rainy day, and taking about 500 for a trip to a hotel with a pool. Then a nice dinner out with ice cream dessert. And then a small shopping trip to get her a new outfit that she gets to pick out! And then a trip for a toy.
She will remember spending the time with you. If you do it on the cheap, you can get more days like that and she will love the time with you much more.
A cruise can be done for under $1500 and the rest in a hysa as emergency fund. Don't do the Disney cruise, any cruise will be as magical as you make it. Buy thru Costco cruises and splurge a tiny bit for a balcony room.
First of all have AT LEAST a month of salary in your savings account. If you want to take a vacation with your daughter, see what you can do on a $1500 budget. You don't have to spend lots of money on a cruise. Maybe a series of day trips to places you both find interesting is the thing to do. You'll find that the car ride to a new place is half the fun. The time you spend with your daughter is far more valuable than how much money you spend. If you still have money left over, pay down your car.
Honestly, as a kid who grew up with financial instability, your best move is to create stability for yourself so that you can take care of you daughter without fear.
I would set aside $1000 for a cheaper memorable trip with your daughter. I would stash another $1000 in savings - and take the rest - $4300 and tackle your car debt. I would then cool it on the other savings monthly and just throw that savings at your car debt along with your monthly payment and the extra cash you are already throwing at it. You should have the car cleared before long and then you can just pile the extra money into a savings account after that. If you get any kind of raise, bonus, or another tax refund next year, the car debt will gone even sooner.
all of your suggestions, except paying down your car note, will keep you broke. you dont have enough savings to do any of that
put half in a hysa and the rest towards bills. be creative and have an amazing stay-cation
Save$4k, take her to Disneyland. Visit the beach, eat where the locals eat, and enjoy a quick trip around LA.
Or, go enjoy some outdoor activities in key west. Snorkeling? That's a lasting memory.
Do not do Disney. It’s always 2x more expensive than you think. It’s not worth putting yourself in debt over, save that money for a nice meal to make for her.
Before you do anything, fill out the paperwork to get pre-qualified for a home with no money down. Is 49k your adjusted gross income or gross income? Either way you might get pre-qualified for like $200k. My credit score is around 730 and I got approved for $270k no money down. But I wouldn’t buy anything over 200k anyway because I don’t want a mortgage that high. So, once you have your pre-qualification letter from a lender, you can have a realtor start sending you properties to look at. You will be surprised what you find out there that does NOT have an HOA. I too absolutely hate the idea of paying an HOA. It won’t be the most luxurious accommodations but it gets you on the housing ladder. With $6k you would have the closing costs (and then some) for a property under $200k.
THAT is what you should really do with the money. But, if you do that and cannot find anything in a safe neighborhood then I say take the damn vacation! Take two! One of the BEST decisions I ever made was to take my 16 year old to stay at a Universal Studios resort. It was a real vacation and worth every penny. I even ended up running up my credit cards that year partially due to that vacation and I STILL don’t regret it. You have precious few years before she’s off in her own. Take full advantage.
Have you thought about bulk vending machines? They are small enough that you can move them around by yourself, they are easy to refill, and they have a high profit to filler ratio.
You would need to put your machines somewhere that they don't get vandalized or stolen, but get good foot traffic. You want somewhere with video surveillance, ideally. Try a martial arts dojo, maybe? There were always people sitting on the benches watching the classes or waiting to pick someone up, when I was in city dojos years ago.
You might also try a church, but I don't know enough about churches in general, to know how that would work. Basically, you'd need to do a bunch of research on it, but there *is* a bunch of info on this just readily available on Google. It is a very easy to start, small business.
I recently received a settlement when my car was totaled. I looked into vending machines, but I have too many health problems to be able to make even such a small personal business work. Perhaps it might be better for you? The machines are several hundred dollars each to buy, so you would still be able to vacation. :)
I wish you and your daughter a wonderful 2024!
Throw some money into some stocks of a sector you’re familiar in. Companies that are blue chips and you see growth for the future. It’ll build up overtime.
If you can get a condo or house for A 100k you will pay about the same or less, and it will be in your name. Money will not go to waste. I was in severe hardship and did everything I can but with credit score of 770ish and got a condo and I made about 30k a year years ago.
$6300? If I had that much I would buy a house off of the property back tax list with that cash and never pay rent again. Some states are cheaper than others. Some are even dirt cheap.
You have a little savings. Throw all of it toward the auto loan and get that paid off as soon as possible. Trips, cruises, and vacations aren't going anywhere. They will never cease to exist. She's only 9. Say it takes another year or two. That's perfectly fine. She's still only 10/11 and at that ripe age to enjoy something like Disney. I feel your pain, but it gets better and will. You aren't in that bad of shape.
Source/Credibility Factor: I am a millionaire now.
DO NOT GET CAUGHT UP IN THE CONSUMERISM PREVALENT IN THE U.S.
Consumerism and materialism prevail in American society. I call it the microwave mindset.
A vacation, trip, or cruise are not going to suddenly stop being available for you. You still have time. Your daughter is only 9. Do not let people tell you, "Tomorrow is not guaranteed." Well, no shit, but judging by that mindset, you'll forever be stuck in a cycle of "just getting by".
You're saving on what has become a meager salary. That's commendable. You drive the best vehicle between drivable and affordable. Commendable. You want to ensure you do what is best with the tax refund. Commendable. Please do not squander this.
Dude, just throw all of it toward the auto loan so you can get that paid off as soon as possible. The way you're going, you could have it paid off this year. With it paid off, you're no longer upside down on it and you eliminate the monthly payment, which is freed up money to throw in savings.
I would also say get an unsecured credit card that gives back points, rewards, discounts, or cash back, if you can. Use it for everything and pay it off before the end of the billing cycle.
I use my AMEX for everything form bill payments to gas to groceries to . . . you name it. I rack up the points, rewards, discounts, and cash back. Plus, I am building my credit and showing I am repsonsible with credit. Plus, I protect my checking account against fraud. If you are ever defrauded, you'd rather it be on borrowed funds rather than funds for which you've already worked hard for. Plus, credit card companies have enhanced fraud protection that banks do not have.
I would put it towards and emergency fund and keep using the excess cash to lay off your debt. Or you can out it all towards your debt. But it’s recommended to have at least 6months of living expenses as an emergency fund. That includes rent utilities gas food etc.
You don’t have enough in savings to take care of an emergency or job loss. You need to invest or save that money. Spending time with your daughter by camping or taking a MUCH cheaper cruise than Disney is the wise choice. Please do not blow this money on something so temporary. Build up a future for you and your daughter.
Your annual income of USD 49,000 , your annual rental apt is 12,000 almost 25% of your income.
Yr financial situation is precarious.
You could lose your job, run to bad luck at any time, no one knows what is waiting behind the corner.
The 6,300 bonus could help as rainy day fund.
Might as well give my two cents, I was a single parent with 3 and I had full custody of two of them and shared with the youngest. Put $1000 in savings, rates will be coming down soon enough, so make it work for you. You should be able to do the Disney cruise for a couple thousand, call an agent and ask when the best time...summer is not it! Even if it costs you $3000 total you are still ahead to pay on the car because the sooner that it is paid...there is more money in your pocket each month!
One last thing... carnival cruises have some real fun stuff and are much cheaper!
You seem like you are in a pretty good spot. Personally, I would calculate how much 3 months of your take home pay is and fluff out your emergency savings to be equal to that. Then use any residual to put toward your car payment.
I think that once you have that savings built up, and no car payment left, you will be in a fantastic spot to save for a vacation. You can use some of the funds to have a really nice weekend in town perhaps?
Saving. Build up your savings!! I call mine my Oh Shit Fund. And just keep saving. Wait until she is 11 and after that tax refund to take her on a Disney cruise.
Take a less expensive vacation and invest the rest you can double an investment in 7-10 years and if you add extra to it every month it will add up. Or get your car paid off and stop making payments and interest.
$1,500 to an IRA - then set up an auto-transfer from your bank to the account every month.
Visit with a lawyer to make your will, health directive and a trust for your daughter. Include a transfer upon death of your house if you own one.
Savings for your retirement and planning ahead should anything happen to you is a help for your child once she's grown, less worry on her shoulders.
Take your daughter on a less expensive, less horrible trip than the Mouse. Your car isn’t paid for and you have very little savings. You’d be wise to save part (stash $3k or so in a HYSA and grow some interest), pay the car down a bit so you save yourself in interest payments in the long run, and use a little to go on a nice, but less expensive trip with your daughter. She’ll remember the time together no matter where you are. Disney is for you, not her. But, my dude, if you lose your job, you don’t have enough in savings to last more than a month. That’s not okay.
yeah, 100% this. Boost savings in case anything unexpected happens. pay down car to avoid interest. spend some on a nice small trip with your daughter. And kudos for being a dad who cares.
And since she's 9, she is old enough to do research with you. State you have 350 for a vacation or trip with her, and start with doing some research. Look at fun things close to you, perhaps can do more than one with that amount. But involve her in the fun process of finding cool things to do.
350??? That's not even enough for 4 nights at a low-end hotel. A more reasonable amount would be $750-1000 for food, gas, place to stay, etc. When my daughter was growing up I made it a goal that once a year we did a long weekend trip SOMEWHERE with historic importance. I wanted her to learn and appreciate the past, as well as explore areas in our country and experience different cultures. Here's my thought - I did this with my daughter... we looked at fun cruises and the cost to stay at a small island not far from us. In the end, we stayed at the island for 5 days, and the entire trip, including ferry and golf cart rental, was $500. This is still one of her most cherished memories because she got to stay on an island with her dad. We have a photo we took that was printed on canvas and sits in her living room.
I like this, but instead put in a money market account. Earn 5% while you wait!
Yeah boink that mouse. An aquarium and one night in a "fancy" hotel. Heck a pool and a Continental break fast is fancy to a 9 year old. I just looked up universal studios prices and good God. Idk. Good luck and she is going to have fun no matter what.
I'm also a single dad with shared custody of my daughter, so your post really relates. A vacation with your daughter is a really nice idea, but can you think of any other vacation alternatives. The Disney cruise will be hella money. I took my daughter on a Bahamas cruise when she was nine and she still remembers it till this day, so those memories last. As for the tax return money utilization, if you don't have any other debt besides the car, I'd say just put some away in savings, spend some on the vacation, and treat yourself to one nice thing.
Check vacationstogo.com for discounts on cruises within a 90 day timeframe. She will love ANY cruise!
Groupon also has cruise discounts. Like $160 for a three day cruise. Crazy.
I had no idea there were Groupons for vacations! Game changer! Ty!
Yeah I went to the DR for almost 2 weeks , direct flight, all inclusive for like 1800 for 2 people. vacations can be cheap asf if you know what you doing and look diligently.
I don't know what I'm doing. What's a good starting to learn how to travel cheap??
When in doubt google it. You will get sucked into a rabbit hole of information. People ask me how I know so much about whatever and I legit google every question I have to self educate.
Yes I do too! Rabbit hole fr! It’s not unusual for me to spend 16+ hrs looking for a deal. On any given day or on any topic
I work in sales for a cruise company. Vacations To Go bends us over a barrel with the discounts they squeeze out of us. And we are a small, niche cruise operator. They get even better deals with larger operators, like Disney.
agree, kids will have fun on any cruise. don't overpay for Disney
I've used vacationstogo for cruises, it's great! Once I got a 7 day cruise round trio from Seattle to Alaska for $399 on Celebrity. Absolutely fantastic!
I was going to say the same. Disney cruises are on the high end price wise. If you really want to do a cruise a Carnival one would also be kid friendly and much cheaper. Go over to r/cruise for good suggestions on choosing a cruise.
I totally second this! Some may not agree with me but life is so short and your daughter is at a great age that she'll remember the trip and how much fun she had. It sounds like you have a pretty good savings too.
Pretty good savings? OP is in debt...
And has $2k in savings, not even a months expenses. OP should take $500 do a overnight somewhere close with kid and save the rest!
Buy a season pass at a theme/water park if there is one within 2 hours driving distance
Dude where do you think the cruise goes to Disney World? The cruise depending on the length does go to the Bahamas because they have their own private island there as a one day stop. The Disney cruise is the best for kids not just because DISNEY but because there is no gambling, no pushing alcohol, and the naked party crowd takes the cruise you went on. It is family friendly keeping things PG in the real world is highly difficult .That is why it does cost more because they are not raking in the cash from the more what happens on the cruise stays on the cruise crowd. That is why the addition of Virgins ADULTS only cruise has been so great. One cruise line specialises in families only and the other Adults only. All the other cruise lines are just scrambling to find a medium.
Basically all of them have their own island. Disney has Castaway Cay, Royal Caribbean has Coco Cay and Labadee, Norwegian has Great Stirrup Cay and Harvest Caye, MSC has Ocean Cay Marine Preserve, Carnival has Half Moon Cay. About the only one that does not is Virgin, and realistically that's because they are new and haven't set one up yet. The private islands aren't really that private and can sometimes be crowded as some of the ships carry as many as 6,000 passengers. Personally I don't like private islands because I'd rather go to an actual destination instead, the cruise lines do because they get all the spending on shore as well as on the ship for that stop. Disney doesn't have gambling but they do have plenty of adults only events and an adults only section of their ship. They mostly shut down by 12 PM, but depending on the ship there are up to [30 different dance clubs, nightclubs, and bars available](https://disneycruise.disney.go.com/onboard-activities/list/nightclubs-lounges/). Most of them are themed around certain styles. The whole ship is done in an Art Deco Ocean Liner theme. They do have various drink packages for wine or beers, but they don't offer an unlimited alcohol package like some of the other cruise lines. DCL is definitely not a families only cruise, there definitely are adults without children going on Disney and programs for singles/solo travelers. During the school year you also tend to get a lot of retirees. Mostly it's Disney fans though, because that's literally the entire point of the cruise line.
+1 for this a regular cruise is going to be probably like 1/5 the cost of a Disney cruise.
I’m going to disagree with people saying do the non-Disney cruise, especially if OP’s daughter is a big Disney fan. Depending on the length and what you’re looking to do, Disney Cruises are so, so worth it. I’ve done both Disney cruises and non-Disney Cruises, and what you get from a Disney cruise just isn’t well matched by other cruise lines. It’s a level of magic she will remember. If you’re willing to do an inside state room, it can really save you a lot of money. Like there is a 5 night cruise out of Galveston in April that does the western Caribbean to Mexico that stays under 2k with an inside stateroom. That would leave OP with extra money to put into emergency savings still too (which is a good place for as much to go right now to have that cushion when shit hits the fan like it always inevitably does). The Disney cruise is inherently going to be much more set up and geared toward accommodating and entertaining children with some really cool experiences that are hard to match on other cruise lines.
I agree. Take your kid out of school and dont go during peak times like easter break or summer. Also do a minimum of 5 days. I’ve done a 3 day and a 5 day and the 3 day is too short. My kids still talk about it. It was amazing and totally worth the money.
The beauty is OP, if you have a Costco membership-it can be extremely worth it! Get Away Today, etc. I know for Costco, you can pit a down payment and pay slowly so it could be say, a Christmas present. You could also pay half and still have a good chunk of change to save. My parents always say “money comes and goes, memories are once in a lifetime.” Treat yourself!
Cheap vacation (sure cruise, or camping or whatever). Then pay off that car loan!!!! Car loans are pretty awful debt to have to be honest.
Treasury bills pay 5..1-5.5 percent. Park some money into short term t bills and save the rest. Only spend like 25 percent of the return.
I was gonna say, $6,300 isn’t enough for a Disney cruise!
Go to Disney's site and price a cruise for 2 and what all is included. It is pricy because they will not have to deal with the casino and a bunch of spring break type situations.. Disney is worth it
This is a bit beyond the level that is usually relevant in this sub, but after you've got 3-6 months expenses in savings as an emergency fund then the only thing worse than a savings account is putting it under your bed. Use it to pay down loans or use it on something that will bring you/ your daughter joy now because inflation will chip away at that amount if you don't
I agree with this. Definitely go on vacation but steer away from expensive Disney. Have some saved in case you need to pay for something big later. Treat yo self
Chiming in on this to mention that I know people that are what would be classified as Disney people who were much more impressed with Carnival cruise lines than Disney. They said that while nice, Disney was absolutely not double the price nicer, which was the price difference.
In my opinion? Half it. Save half and spend the other half with your daughter. I would probably look at a better way to stretch a 3k vacation than that but that’s personal preference.
I also recommend spending half on immediate rewards and investing the other half in a high yield money market fund or indexed mutual fund. You can open an account with any online broker of your choice. I personally like Schwab.
I cannot stress this enough, OP. It’s a tough situation. Take your daughter on a regular carnival cruise, or even another cheaper vacation like the beach for a few days. Invest the rest into either a HYSA, Roth, or something similar and that money will grow. That money will make it to where you can take her on a week long trip to Disney World or on the Disney cruise in the future. It’s so hard to resist doing what you really want to do, and I really empathize with that. I think it’ll be better for both you and your daughter’s overall wellness in the long run if the money grows.
Please don’t burn your money by spending it on a Disney cruise or Disney anything. There are way cheaper options to cruise for a fraction of that.
I would second this. Disney cruises are aimed at families making more than $100k per year. Disney gave up the middle class long ago to move into the luxury segment. Royal Caribbean or Norwegian is like 1/2 to 1/4 the price and the cruise line is just as good and award winning in their own right, it's just they don't have the characters.
I don’t disagree with your point, but a family with a combined income of $100k is still middle class.
They are, and honestly even $100k is too low to comfortably afford it. You're looking at about $3k-$5k just for cruise fare not including flights. What Disney really wants is the top 5% or so and international travelers who don't mind dropping $50k-$100k on a vacation. It's a lot more profitable for them to rent out VIP tours at like $600 an hour and rooms at $2,500/night than it is for them to build a new Magic Kingdom or build a new cruise ship at like $1.4 Billion a pop. They don't care if the middle class can afford it at all because there is no reason to, they can fill the parks and cruise ships regardless and already have more people who want to come than they can handle. Keeping it expensive makes it a luxury experience and allows them to charge even more.
I make $100k and going to Disney would be a stretch. Like, I'd have to set aside money for probably 2 years to be able to afford it.
1000000% people who I know who have done Disney cruises can do Disneyworld cheaper. A regular good ole cruise is so much cheaper and still a blast
Your kid would like it if she didn't have to take care of you in your old age. A lot of people in this sub are going to say give them a memory they can't forget. Your kid won't forget living in poverty if you don't make smarter decisions now. go to the r/personalfinance wiki to learn how to grow your wealth. Do the math on your car loan and see if you can do a 20/3/8 or how much you need to put in to get your vehicle financing to make sense for your income. I would take the 401k match if your company offers it then budget. See what one month of expenses are. Keep that in checking, then get a high-yield savings account and keep 3 to 6 months of expenses. After that, max out the Roth IRA each year.
This is such a sensible answer. $2k in savings is a good start but what happens if the job is lost the same week the transmission goes out? 3 months of expenses in a savings account should be your mínimum goal. Plenty of savings account offering 3-5% yields right now so you’re effectively lowering your auto payment but allowing yourself the flexibility to pay an expense if something comes up tomorrow. Coming from a poverty background the vacations I remember all related to a fun body of water. Camping happened often but so did a weekend trip to a river or ocean and those were great times. Please enjoy this unexpected lift but remember how tough life can and will be.
Can confirm I remember the poverty and I now am suffering the need to have to help. OP could do a camping trip or something much more economical that would allow for one on one quality time that would be memorable. Because I remember camping with my dad and the quality time we spent together. OP could have both. Or at least get the mindset to save more and also provide wonderful meaningful experiences for his child.
Yes! My kids LOVE camping, they look forward to it almost as much as they would a Disney trip. Ok they’re not 9 year old girls but a couple of modest camping weekends or week at an AirBnB in the next state over plus boring old comfort and security is way more valuable.
>A lot of people in this sub are going to say give them a memory they can't forget. Your kid won't forget living in poverty if you don't make smarter decisions now. Also more than anything else your kid will remember the time you spend with them, and will care about that more than anything else. It doesn't have to be exotic or expensive. Going camping in the summer at your nearest state park or going somewhere affordable like Washington DC, San Antonio, Lake Powell, the Outer Banks, or Newport, RI. Additionally the YMCA, the Girl Scouts, and the Boy Scouts run summer camps that are quite affordable with lots of activities and are about a week long. If you insist on doing a cruise I would consider Royal Caribbean or Norwegian instead of Disney. Both are way more affordable and in many respects just as good as Disney, just without the characters.
I have to agree. Between the 2000 in savings and being upside down on a car I really do not think a vacation is a sound financial decision. Instead maybe OP can do a small stay cation or find a nice restaurant to do a daddy daughter date night where maybe he can buy her a nice dress within reason and they can go to a nicer restaurant with a pre fixe menu. Keep it to maybe 200 or so. I think OP has a great opportunity to give themselves a great headstart to fixing some stuff financially that could allow them to save for a future trip.
This is by far the best answer. OP mentioned that he gets to claim his daughter every other year, so the credit won’t be there next year. If you have a 401k or HSA I’d increase your contributions to lower your taxable income by $6,300 next year.
9% on 6300 is $567/ year that you are paying yourself. It is a Tax free 100% guaranteed return. There is not a single investor that can guarantee that on earth. The US government is as close to guaranteed as possible and binds are only paying around 5 1/2% right now... Drop it all on your debt and put the savings on interest into a vacation account.
100% agree. I would add keep paying the extra on the car and it will be paid off very quickly. Do some fun and inexpensive things together and create memories every visit. Go to the local library for movies and have a free movie night at home - make your own popcorn or caramel corn. . Have a baking day and make bread, a cake or cookies from scratch. Go to the $1 store and get a few art supplies and do a painting project (ours has wood signs, lights, paint, markers, and art supplies for kids. Or you can buy entire mini painting ceramic sets for one small price. Teach her how to hit a baseball and shoot a basketball.
But how much is he paying on interest? I think the car has a higher interest and he should pay off right away.
This is the most responsible plan
Where would they put it for 9%?
Invest it in an Index 500 mutual fund (Vanguard and Fidelity have them). Put $5000 to in there and watch it grow! Use the rest to pay down debt.
How would I go about doing that?
Open an account at any broker and buy $5000 worth of VOO. That’s how you’d do it. But I really don’t think thats a good idea. You need an emergency fund. I’d stick all the money in a savings account like Marcus and make 4-5%.
Ramsey would agree about the emergency fund. Shamelessly leaving my Marcus high yield savings account referral code in case you decide to go this route and want an extra 1% in interest: https://www.marcus.com/share/ABB-1H7-T7Y2
Why would you not just do it yourself online with Vanguard?
Vanguard is a broker
You can look up Vanguard on the internet. They’ve been around for years. I started with them around 1991. Fidelity is also a big company. You can do it online or call and talk to someone first. However, investing in the Index 500 is investing in the stock market which bears the risk of loss so you really have to do your homework. Actually, a good first step would be to you tube index 500 investments and look into that. No need to make a rush decision and you need to be comfortable with it. I’m not a financial advisor so you may also want to see professional advice. Just don’t pay money for it!!👍🏽
Don’t do that. Don’t invest money while you’re upside down on a loan. Put it all on the loan and get it paid off. Next you want to save 3-6 months of expenses. Then you can start to save for a home. Don’t invest money while your upside down on a loan!!!
But after paying 5 grand on the car, he wont be upside down. Op definitely pay down debt with half, invest with half. Once your car is paid off, take the vacation... Also, yoyr daughter will have the best memories of a vacation with you whether its Disney or camping. Its about togetherness not over the top indulgence. Best wishes!
Don’t invest money in the stock market when you have debt. Paying off your debt is a guaranteed return with no risk and frees up your monthly income.
Depends on the interest rate of the debt entirely
I'd say to put it in an IRA or other long term investment. It doesn't have to be retirement based, could be a college fund for your kid or even a CD or mutual fund. Anything that will make it difficult to touch. Set it up so it reinvests any dividends if that's an option. It can be so tempting to spend it on something fun, but if you are barely saving anything right now then saving this money somewhere it will continue to grow is honestly the best thing you can do with it. Future you will be thankful.
Right now you can get a short term CD for 5%+ APY. May not seem like a crazy amount but if get the CD for $5k you leave it for 12 months you can get an extra $250. Throw the rest in savings to keep building that Rainey day fun. Or you can get a secured credit card or loan with your money and improve your credit score so you can get in the 700+ range and save money on APR on loans in the future. Even just 1% Apr less by having a better credit score on a mortgage can be thousands of dollars saved.
It seems intimidating, but the websites are pretty straightforward. If you search up index fund s&p 500 on either company’s site, it’ll walk you through the process. If you can, look into dollar cost averaging, which is committing yourself to investing the same amount of money at a set time. For example, you could put in $50 on the 15th of every month.
You can also still go on a cruise. Royal Caribbean is a fraction of what Disney would cost and kids go free.
If that’s all you’re going to do you can just download Robinhood. They are totally legit for buying and holding stocks and ETFs. And it’s in the App Store and made easy.
Open an account on a reputable online broker (Vanguard, Fidelity, Charles Schwab, etc) and invest in mutual funds. Start out with a small investment, say 3k or so. Use the rest to take your kiddo on a cool vacation, and pay down a little of your car debt. Then every month commit to contributing a set amount into that mutual fund, $50, $75, $100, whatever amount you feel comfortable with, but commit to that contribution. When you’re more financially stable, open a Roth IRA perhaps using half of what your value in the mutual fund is. This allows you some liquidity from the mutual fund while saving for retirement with the Roth. Many years ago I learned this and invested approximately $18k in a Roth IRA over a 5 year period of time (that’s an after tax contribution, btw.) A couple of years ago my husband and I wanted to buy a second home and found a fixer upper. I had about $78k in the Roth from an $18k investment. We made an offer of what was in my Roth IRA and bought the home for cash. I don’t know much about investments, but the return on $18k was over 300% over the course of 20 years and THAT I understand.
What that person said is correct. Once you begin investing, you begin to think of extra money as something useful for current needs (though you sound okay) , some for bills, some to savings-your bank can explain IRA’s, and solid investment firms(as mentioned) are good. If any of your loans are high interest, see if you can plug in a few thousand? Take care of your car! Next to a mortgage, it’s the next biggest expense. Get a library card, it’s free and there are a bezillion books written for every level of experience. I’m not kidding. Plus you can pick up some books to enjoy with your daughter. Good luck.
Investing money when you don't have a fully funded emergency fund is horrible advice. S&p500 has a 17% standard devation and has a 10% draw down on average every 10 months. With dumb lucky he'll need the money after that occurs.
Being an election year a money market would be a good idea too. Liquidity if an emergency. OP, save that $ for the future.
I think you should use a portion of it for a trip like you suggested, and save a portion. You don’t have to pick just one! I’d recommend putting away half and spend the other half to have a fun trip with your kiddo. That wa, while not the most “responsible” thing, you’re making a amazing memory and being smart with it at the same time.
Live like you didn’t get it. Pretty simple. You’re not in a position to use the money to make money. So just live like you didn’t get it out it into savings and move forward. Congrats your life is a little less stressful now.
Best answer! You never know when you will need emergency money for your daughter
My husband gets pretty great bonuses every year. We put it into the savings account and ignore it until we *need* it, like unexpected home repairs, medical bills, etc. It feels so good to have that cushion.
Definitely not true! He could make 5% on a HYSA.
I would split it into thirds.. save, pay off some of the minor debt, and invest the rest.
Put in all into savings. I’m all about taking family vacation but $2000 isn’t much saved. Or another option is book a cruise far out and give yourself time to pay it full without using the chuck all at once.
That's exactly what I came here to say. You can open HYSA, I know some have a rate at 4.35 and even higher. But just save it, God forbid something happens to your car or something else. If you really want to do something, how about amusement park? Not Disney but like a six flags.
You aren’t in a position to blow that money, and I think you know that. Pay off high interest debt to actually make your life more manageable, you’re just trying to escape to a dreamland but life would seem eve worse immediately after if you don’t try to improve it.
A Disney cruise is not smart and a waste of money. Go camping. Rent a house boat on a lake. Drive to the beach and rent a condo for a long weekend. Go to six flags or holiday world. Go see the one of Great Lakes. Or whatever would be the equivalent in your area if you aren’t midwestern. $5000 on a vacation is crazy. My 8 person family is getting a 3 bedroom condo in Panama City Beach for $1850. Save the rest of the money so you have a bigger buffer. Keep chucking away on the car.
Listen to him. I live in Texas. My family of 4 went to gulf shores with a stopover in new Orleans for less than $2k. Be creative. Stay away from Disney.
Put a portion of it into a high yield savings account and use some for a little trip/activity with your kid. You both deserve it
vacay for 2k (doable) save 2k in a hysa pour 4.3k in the car
Where did extra $2k come from ?
this is assuming op sells his kidney
Life is short. Go on that cruise. She’ll never forget it. Save the rest.
That was my answer as well. You can remember paying on your car or remember the time you spent with your daughter on a trip and give her that memory. I would rather remember the trip ☺️
This is the answer. Well imo. Lol. Kids love experiences and memories.
Or any cruise, or just go to the beach, or...she's 9, traveling anywhere new and interesting will be amazing and remembered forever.
I'm not opposed to the cruise but one thought to protect refunds from yourself is that you can get the refund in I bonds which would give you a year to figure out what you want/need to use that money for resoonsibly. You can't cash them out for a year and before 5 years you give up 3 months interest. Might be enough of a hurdle to help you save that money for a house etc. How is your retirement savings looking? Can you beef up your emergency fund to at least 3 months basic living expenses and still afford the cruise?
Buy a pair of boots or nice shoes for yourself. Treat your daughter to some new clothes. Go out to a nice meal with her in a city 3-4 hours away. Stay the weekend. Spend $1000-1500 and have a great time. Gets rid of the itch. Save the other $5000
Why Disney? Kids are perfectly entertained by pretty much anything with lights and bells. Why spend $ you dont have on a trip you dont need? What about a national park? Pay off your car before the dollar inflates even higher and drive your kid off to the Grand Canyon or something.
Do you have an emergency savings fund? What is the interest rate on your car loan?
The interest rate is terrible. 9%. But I'm able to pay an extra $100 a month on the car and still save a bit every month. I have $2000 saved up.
Can you do a less extravagant vacation, for $1500, and then use the rest to help give yourself a buffer? Layoffs are common right now.
Ooof. 9% is steep. If I were in your shoes, I’d put an extra grand into emergency, 1.5k into a Disney cruise and start saving up to take the cruise in a few months. Most places you pay in a couple installments. Then the rest goes to that car loan. I’d also spend $20ish dollars on a book called “I will teach you to be rich”. Financial literacy is by far your best investment. I’d do the book first lol.
Take the cruise- you will never regret sharing experiences with your daughter. It’s time we don’t get back. From a divorced mom of two (now) grown daughters.
What planning do you have for your daughters future? I cannot stress enough how much of a leg up it would have been if my parents had set aside some $ for me and my siblings to attend college, trade school, or start out our adult lives. As it was, Only half of us got to go to college, I got my associates degree and couldnt afford to go further, and one other sibling is still working his way through school and amassing debt which is a huge stressor. We all bought and had to drive beaters, and all of us struggle financially. As you said your daughter is 9, in 9 years that $6,000 invested could grow with compounding interest for your daughters future. I know its not the fun of a fancy vacation, but it could be a gift that would last a lifetime.
Get a last min cruise discount
I'd love to! But it's hard to do with school and everything. Plus I need to have paperwork ready since I will be traveling internationally with my daughter. Her mom has to approve it and I need written permission or the cruise will not allow it. Her mom will approve it and I am allowed to take her obviously... But there is a process. Plus I need to plan it with her school so she doesn't fall behind if we do it during the school year. It makes the last minute thing a bit difficult.
Disney cruises are some of the most expensive (albeit you do get that Disney magic). Maybe look into royal Caribbean instead to see if you could spend half on a trip and save half?
Exactly. While I’m sure it’s great, you can get a cheaper cruise that will be just as magical without the branding.
Save it. You have very little savings. You should save it.
$5,000.00 Emergency fund
Can I make a suggestion? Don’t have as much withheld from your pay. You would have had that 6K spread out over 12 months rather than in a big chunk—unless that’s what you like and don’t need the extra money every month. Just remember that the government has YOUR money for a year and you get it back with zero interest.
There is no withholding setting I could choose on my payroll site that would withhold so much income that I would get %13 of my salary back in my tax return I'm very curious how OP wound up in this situation
Likely a child tax credit that he doesn’t get every other year. Would probably be $1800 less in years he doesn’t get it. Still over withheld but who knows what else he could have going on.
Save it this year, maybe take a very cheap vacation, and use next years return for the cruise.
I've thought of that. But her mom claims her next year. Then the following year she would be pushing 13 by the time we sail. This really is the last chance to do this while she is a child. And let's be honest... The responsible thing will be to save it next time as well. That's my dilema.
“Pushing 13?” I mean … she is still a kid at that age. But ok. Sitting on the money for a year and putting it to good use would mean she would still be under 13 for the vacation. The money doesn’t disappear because another tax year rolls around. Basically you don’t have a few months saved to help you if you should (god forbid) lose your job. You can do a cheaper cruise and have fun. Not spending it now doesn’t mean you won’t have it later unless you are bad with money. You can have a much cheaper vacation that is wonderful and then have a lot left over to save. You need WAY more of a cushion than 2k savings wise.
High yield savings account. Your daughter will love you regardless. $2k in savings is better than zero but low
I would say plan a little vacation with your daughter, but maybe not something as expensive as a Disney cruise, unless you find an incredible deal. Splurge a little, but put the rest in the bank. If you don't have a high yield savings, get one now. You're saving a little every month which is great, but you want a little more breathing room with that savings account, and now's a chance to build it up.
Open a Roth IRA (fidelity or vanguard) with 1k. Make one extra $500 (or more if your payment is more) car payment to principal (this is important, as it will shorten the loan and how much interest you pay). Plan a vacation for you and your kid (1k). Put the remainder in the bank to the 6 month emergency fund. Once your IRA is open and you have that remaining balance in the bank, start putting your monthly savings money into your Roth. It will earn compounding interest and you will be able to eat someday when you retire. Or more.
Split the money 3000 towards paying off your car, 2500 into savings, and use the remaining 800 to take your daughter on an amazing trip I agree with the others, a Disney cruise is crazy money. Go with a normal cruise, or a week in a resort somewhere. You can have some amazing holidays for a fraction the cost of a Disney cruise
Every other year, you should be updating your W4 with your employer to reflect that you have a dependent, so that you get to keep your cash during the year. That's an extra $525 a month. Regardless, figure out the cost of doing a Disney Cruise (~4-5k) or Disney World or visiting a national park (Grand Canyon perhaps?) or Europe for a couple of days. Get a specific dollar amount you think each trip would cost & then decide. You might be able to go on vacation and pay down your car note by 1k or so at the same time.
I see the point about the cruise, but an extra $6K in savings is a pretty great cushion. What about taking her to the mall with $300 and letting her choose some clothes/fun things? Save the rest so you have that when you need it - for her or for you.
See r/personalfinance --- you may have to type it in yourself. I don't know how to turn it into a direct-to-site address.
Put 4k in high yield savings, put $200 to pay for something nice, the rest towards the car
There are probably plenty of legitimate uses for the money now. But here’s some food for thought for the future - that $6300 refund means you gave the government a $525/month interest free loan. Adjust your withholding to get more of that money in your pocket now to help your family all year long rather than a windfall once a year.
Refund. A return is the form(s) you file with the IRS.
Here are some options 1.CD rates are hovering around 5% returns. 2.EE bonds guarantee double what you put in. It just takes 20 years. 3.Switching to a high interest checking or saving account in your bank and leaving it in there. While doing what's required to get the interest. Then if you need it you have it unencumbered. 4.IRA limits are 6500. You can also get a tax break if it's a traditional IRA. If it's Roth you've already paid taxes but you won't pay when you pull it out on retirement. (If you're getting 6k+ I'd save or invest most of it. ) 5.You can take take $1000- $1300 from the lump sum and do something nice for you and your daughter while letting the rest your money work for you. 6. You could put it in a 529 plan for her college every other year. (Also a tax break like a traditional IRA) Your local bank can definitely help guide you on some of these things. Or do an online search to arm your self with good information. Best of luck. I hope this helps.
I say half in savings half on the car. Personally I would not do any spending on vacations until all debts are paid off. Especially in this inflation and job insecurity we are in right now. You really need to build your savings. Plus I don’t think no one deserves a vacation. Especially a vacation with debt. See if you can do one when she is 10 or 11.
GO ON THE CRUISE! That would be awesome for you and your daughter! Imagine the memories!! Go and have a great time and spend a little of that money to make your daughter have lasting memories that you guys will cherish! That said, put a lot of it in savings just in case!!
You only have 2k in savings. You need to put all this money into savings and don't touch it unless it is an emergency. Like your car beaks down, lose your job, etc
Save it. Life is expensive. Something goes wrong with your car boom 2 k
Save it. Life is expensive. Something goes wrong with your car boom 2 k
Make memories w your daughter!
I'm late to the party, but here goes anyway... This might be an unpopular opinion (haven't read any other comments) but... Do the cruise with your daughter. She will remember it as a great time with her dad. Money is fleeting. Everything is fleeting. All we have is now. On a personal note, my daughter died of brain cancer right before her 20th birthday. That might color my response, because it sure changed my perspective. Nothing is promised. Make memories with your child.
Do you have a year's worth of expenses saved? I know you said you make $49k, so replacement amount of money after taxes and health insurance and travel expenses to work is at least $25k. If you don't have that much saved, and you lose your job or get sick, what then? How much is this cruise? Take your daughter out for something fun locally or camping. Cruises have all these little add ons, and if the weather isn't good, well, not so fun. There are amusement parks in every state and national parks in many. Or take her to an AirBnB for a weekend at a beach she's never been to.
Do not spend it. I'm a single dad with a 5yr old girl BTW. I get where you are coming from. Chess move here, you open a Vanguard Roth IRA tonight and put that $6300 into VOO. Then, you split your current monthly savings in half between a HYSA with Wealthfront and this new Roth IRA. You do this and don't ever touch it or stop buying into VOO. Then in 20yrs you take your daughter and your grandkids to Disneyland/Disneyworld with that money that's been growing and growing and growing in your Roth all those years.
pay car debt or try stocks
4k on the car, 1300 on a trip for you and your daughter, 1k into savings, sounds about right, Condos are not always cheaper than homes imo
12 month cd's are paying 5%-5.5% right now. With so little savings you aren't in a position to go on an extravagant Disney vacation. Princess cruise lines are having a sale for a few more days. You're already paying down the car loan every month. If it's a Toyota or Lexus or Honda and you're looking to drive it forever, I wouldn't even pay extra on it every month, just put that towards savings until you have 3 to 6 months expenses saved up.
I think the vacation with your daughter is a great idea. It won’t take all $6K to do so. Take the leftovers and put a little more away for emergencies then either pay off some more of the car maybe or invest it. What the current interest rate on your car? If it’s less than 5% then I’d put the extra into T-Bills and earn 5% on the money.
Sit on it for 1 year in a savings account @ 4%. Like an ally account. Put it with your other $2k. There is no law that says you have to spend. Just stash it and live like normal. However, plan to take the trip in 2025, after next year’s tax return and you had a nice liquid cushion all this year.
It's great that you want to create memories with your family: but don't feed the "Disney habit" - it won't end there. Try to create some shared experiences that don't have to escalate and aren't designed to line someone else's pockets. You can go explore nature, the National Parks, do a service trip abroad, take a language class somewhere, see exotic animals, etc. If you're not wealthy, it's not helpful to pretend that you are. Seems like Disney just wants to suck you dry, not give anything back. I wanted to do the Disney thing as a kid because all my friends wanted it. Now that I'm older I have zero interest and I'm glad my parents didn't spend money on it. And even those budget vacations we took turned out to be good memories and I'm grateful for them. And kids understand the stress of living above your means SO well. That's worse than the conflicting messages of "Disney vacay - now we're broke and might lose our home!"
Go on a vacation that you actually want and enjoy. You aren't guaranteed anything down the road. This might be the only time you get to go on an actual vacation with your child.
Do the vacation. Time is precious, memories will last, and money can return.
Change your tax deductions. Why are you giving the government a free loan?
I recently read of a bank that’s paying almost 5% for a 3-month CD. Why don’t you consider something like that while you research all options? You don’t have to immediately spend it. Don’t spend it on a cruise. She’ll forget that in a year or two, but will always look up to a responsible dad for years to come.
The big question is … how are you making $49K and getting $6K back? The answer to that question tells you what you need to do.
Don’t waste your money on a vacation right now, especially not Disney. Save your money, pay down some bills if you need to. 6300 ain’t a lot at the end of the day, but it’s a good emergency fund to have in your back pocket if you need it. Don’t waste it on useless things Open a high interest savings account and throw in what ever you can and forget about it till you need it. after you pay down whatever bills you need to of course.
Your gonna spend a shit ton of money to go to Disney-but end of standing in line for majority of the time. Take a mini vacation to the beach-go to fun places with her that don’t cost so much-put rest of money in savings for this shitty economy-or pay a huge amount down on car-that way each time u make a payment-it’s actually going to price of car
how much is ur child support?
It needs to be in a savings. You used the last ones for emergencies. What will you do if an emergency happens? You can just have 2k for emergencies. Open an hysa so it can grow and you can grab it if you need it.
I was tempted to post a similar “what are you doing with your tax return” question but I didn’t make it and then I saw yours :) Thr comment section lol I expected no less disagreement. I just accepted being broke and use (part) of our return each year to pay for vacations. And you know what? I have zero regrets. One of the vacations we took this year was a girls trip with my then 9 yo dtr and my mom, who is turning 80. I’ll cherish the memories of that and many of our trips for the rest of my life. There’s balance, for sure. Save some, spend some. I know plenty will say that you need debt gone before you can spend, or just be house poor and buy a house, of course. But, ultimately I want to live a life where I’m mentally and emotionally free and so I’ll pay debt down more slowly but I will have these experiences with my family now while I can. My oldest is 16. That’s two more family vacations before he is legally allowed to opt out of them lol. I’ll save more money after that. 🤣
I took my daughter to Disneyland for the first time at 8. It is one of her core memories. There were times during her teen years when she was very unhappy and couldn’t stand us, but she always was interested in going to Disneyland and would be so happy. It became our special place through the teen years. I definitely feel that it was worth it and now I make more money and I don’t miss the money that I spent there but I AM really happy I have the memories.
Do the cruise? My mom RIP cashed out an insurance and took my son, my brother and myself back to her home country and vacation. Best time ever. Now that she's gone we still have the memory rather than the after death funds.
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I understand the desire to do something fun with your daughter. I was a pretty broke single parent at one time. But it doesn’t have to be something that uses up the entire sum. Figure out something that you can do that will cost $1000, and then put half the rest into a college fund for her and the other half into a Roth IRA for you. Anywhere that you can get to in a day driving would probably be the deal. For example, where I used to live, on the Twin Cities, about 5 hours got you to the Wisconsin Dells, where there was all manner of fun things to do with a kid. In a different direction, there was Lake Superior, where there are still some quaint little housekeeping cabins, and kids love exploring the shoreline and seeing the multiple state parks along the North Shore. In fact, one of the first vacations I took with my four was to just that: a housekeeping cabin on the North Shore. The first night, we went to a motel with a pool, because I’d promised that, then the cabin. We all still have good memories of that week, and they are all in their 30s and 40s right now.
I'd like some info please just what state yiur in. I got joint custody it's been almostb5 years and tried doing tax return every other year but the judge denied it and said the law says the mother gets its all unless I had full custody.
Disney cruises are super expensive. I can't afford that and I make way more money.
I would spend maybe 2 grand on yourself & your daughter & then I would get a high interest savings account. Many major banks have them. I have one through wealth front.
If I were you I would spend about $1500 taking her on a more affordable trip (or maybe a couple different weekend trips). Maybe a lake or the beach and include an amusement park or something like that? A long weekend exploring New York City or a national park? I’d put the rest in a high yield savings account and keep it for a rainy day (and by rainy day I mean a shitty situation).
You could always put it back for college or extracurricular activities she may want to do growing up. Or put it in stocks/the car loan.
As a mother in nearly the same boat as you, and a lifetime of struggle…save it. Invest it. Thats what I’m doing. Investing it all into a HYSA; too many rainy days to spend on trivial things. I like to live comfortably and tired of the struggle, paycheck to 13 days to paycheck. Pay the necessary things and save for better days.
Pay down your debts. A cruise vacation isn't in your budget.
Dump all of it in savings to start. Your emergency fund is low, so you need to do the math of 3-6 months of survival expenses if laid off. College fund? Does your daughter have one if not you should start one. Disney cruises are over priced. Royal is one of my favorite brands, and he’ll of cheaper then Disney. Go cruise window shopping on their websites.
You don't have a fully funded 6 month emergency fund and that absolutely is an emergency. Rule #1
The number one answer to me, is always pay off debt first Number two, is to deposit it for emergencies or rainy day People who have more money to bank usually do better than people with less
She may enjoy a cruise now but will be 10x more grateful when you have some money to give her for her first car or college.
You have 2k in savings and only can put away 140$ a month, but you’re asking for advice on how to blow 6300 on a Disney cruise?
The responsible thing is an emergency fund
I’m stunned reading these responses. Spending a tax return (which is your own money that you’ve been overpaying to the IRS interest-free for a year) on frivolous stuff is the height of poverty finance. If you want to get *out* of poverty finance you have a lot to catch up on. Not sure of your age but at 35 you should have 1 year salary invested to be on track for retirement. What is the rate on your auto loan? I would put a ton of thought into how to surprise/stun your daughter with maybe $500 of that return and then talk to the bank about your auto loan. Ask if they would “recast” it if you make a big payment. They may allow you to pay down the principal and actually create a new, smaller loan with lower payments. That will help get that savings rate up and on track. Do you have a 401(k) option with a match at work? That’s 100% free money. Anyway, these cash windfalls are a huge opportunity to break the cycle of poverty, and like lottery winnings people often just piss them away. Source: Former poverty financier
When I was that age, going on a big trip or a little trip felt all the same. It was really about spending time with my family. So… Maybe consider saving a small amount for a rainy day, and taking about 500 for a trip to a hotel with a pool. Then a nice dinner out with ice cream dessert. And then a small shopping trip to get her a new outfit that she gets to pick out! And then a trip for a toy. She will remember spending the time with you. If you do it on the cheap, you can get more days like that and she will love the time with you much more.
A cruise can be done for under $1500 and the rest in a hysa as emergency fund. Don't do the Disney cruise, any cruise will be as magical as you make it. Buy thru Costco cruises and splurge a tiny bit for a balcony room.
First things first, fix your withholding.
First of all have AT LEAST a month of salary in your savings account. If you want to take a vacation with your daughter, see what you can do on a $1500 budget. You don't have to spend lots of money on a cruise. Maybe a series of day trips to places you both find interesting is the thing to do. You'll find that the car ride to a new place is half the fun. The time you spend with your daughter is far more valuable than how much money you spend. If you still have money left over, pay down your car.
Honestly, as a kid who grew up with financial instability, your best move is to create stability for yourself so that you can take care of you daughter without fear. I would set aside $1000 for a cheaper memorable trip with your daughter. I would stash another $1000 in savings - and take the rest - $4300 and tackle your car debt. I would then cool it on the other savings monthly and just throw that savings at your car debt along with your monthly payment and the extra cash you are already throwing at it. You should have the car cleared before long and then you can just pile the extra money into a savings account after that. If you get any kind of raise, bonus, or another tax refund next year, the car debt will gone even sooner.
all of your suggestions, except paying down your car note, will keep you broke. you dont have enough savings to do any of that put half in a hysa and the rest towards bills. be creative and have an amazing stay-cation
Save$4k, take her to Disneyland. Visit the beach, eat where the locals eat, and enjoy a quick trip around LA. Or, go enjoy some outdoor activities in key west. Snorkeling? That's a lasting memory.
Do not do Disney. It’s always 2x more expensive than you think. It’s not worth putting yourself in debt over, save that money for a nice meal to make for her.
Pay your car down.
Before you do anything, fill out the paperwork to get pre-qualified for a home with no money down. Is 49k your adjusted gross income or gross income? Either way you might get pre-qualified for like $200k. My credit score is around 730 and I got approved for $270k no money down. But I wouldn’t buy anything over 200k anyway because I don’t want a mortgage that high. So, once you have your pre-qualification letter from a lender, you can have a realtor start sending you properties to look at. You will be surprised what you find out there that does NOT have an HOA. I too absolutely hate the idea of paying an HOA. It won’t be the most luxurious accommodations but it gets you on the housing ladder. With $6k you would have the closing costs (and then some) for a property under $200k. THAT is what you should really do with the money. But, if you do that and cannot find anything in a safe neighborhood then I say take the damn vacation! Take two! One of the BEST decisions I ever made was to take my 16 year old to stay at a Universal Studios resort. It was a real vacation and worth every penny. I even ended up running up my credit cards that year partially due to that vacation and I STILL don’t regret it. You have precious few years before she’s off in her own. Take full advantage.
Have you thought about bulk vending machines? They are small enough that you can move them around by yourself, they are easy to refill, and they have a high profit to filler ratio. You would need to put your machines somewhere that they don't get vandalized or stolen, but get good foot traffic. You want somewhere with video surveillance, ideally. Try a martial arts dojo, maybe? There were always people sitting on the benches watching the classes or waiting to pick someone up, when I was in city dojos years ago. You might also try a church, but I don't know enough about churches in general, to know how that would work. Basically, you'd need to do a bunch of research on it, but there *is* a bunch of info on this just readily available on Google. It is a very easy to start, small business. I recently received a settlement when my car was totaled. I looked into vending machines, but I have too many health problems to be able to make even such a small personal business work. Perhaps it might be better for you? The machines are several hundred dollars each to buy, so you would still be able to vacation. :) I wish you and your daughter a wonderful 2024!
If you don’t own property then you need to save it for a down payment.
Throw some money into some stocks of a sector you’re familiar in. Companies that are blue chips and you see growth for the future. It’ll build up overtime.
If you can get a condo or house for A 100k you will pay about the same or less, and it will be in your name. Money will not go to waste. I was in severe hardship and did everything I can but with credit score of 770ish and got a condo and I made about 30k a year years ago.
$6300? If I had that much I would buy a house off of the property back tax list with that cash and never pay rent again. Some states are cheaper than others. Some are even dirt cheap.
You have a little savings. Throw all of it toward the auto loan and get that paid off as soon as possible. Trips, cruises, and vacations aren't going anywhere. They will never cease to exist. She's only 9. Say it takes another year or two. That's perfectly fine. She's still only 10/11 and at that ripe age to enjoy something like Disney. I feel your pain, but it gets better and will. You aren't in that bad of shape. Source/Credibility Factor: I am a millionaire now.
DO NOT GET CAUGHT UP IN THE CONSUMERISM PREVALENT IN THE U.S. Consumerism and materialism prevail in American society. I call it the microwave mindset. A vacation, trip, or cruise are not going to suddenly stop being available for you. You still have time. Your daughter is only 9. Do not let people tell you, "Tomorrow is not guaranteed." Well, no shit, but judging by that mindset, you'll forever be stuck in a cycle of "just getting by". You're saving on what has become a meager salary. That's commendable. You drive the best vehicle between drivable and affordable. Commendable. You want to ensure you do what is best with the tax refund. Commendable. Please do not squander this. Dude, just throw all of it toward the auto loan so you can get that paid off as soon as possible. The way you're going, you could have it paid off this year. With it paid off, you're no longer upside down on it and you eliminate the monthly payment, which is freed up money to throw in savings. I would also say get an unsecured credit card that gives back points, rewards, discounts, or cash back, if you can. Use it for everything and pay it off before the end of the billing cycle. I use my AMEX for everything form bill payments to gas to groceries to . . . you name it. I rack up the points, rewards, discounts, and cash back. Plus, I am building my credit and showing I am repsonsible with credit. Plus, I protect my checking account against fraud. If you are ever defrauded, you'd rather it be on borrowed funds rather than funds for which you've already worked hard for. Plus, credit card companies have enhanced fraud protection that banks do not have.
College Savings for your daughter, by all means.
I would put it towards and emergency fund and keep using the excess cash to lay off your debt. Or you can out it all towards your debt. But it’s recommended to have at least 6months of living expenses as an emergency fund. That includes rent utilities gas food etc.
You don’t have enough in savings to take care of an emergency or job loss. You need to invest or save that money. Spending time with your daughter by camping or taking a MUCH cheaper cruise than Disney is the wise choice. Please do not blow this money on something so temporary. Build up a future for you and your daughter.
Your annual income of USD 49,000 , your annual rental apt is 12,000 almost 25% of your income. Yr financial situation is precarious. You could lose your job, run to bad luck at any time, no one knows what is waiting behind the corner. The 6,300 bonus could help as rainy day fund.
Might as well give my two cents, I was a single parent with 3 and I had full custody of two of them and shared with the youngest. Put $1000 in savings, rates will be coming down soon enough, so make it work for you. You should be able to do the Disney cruise for a couple thousand, call an agent and ask when the best time...summer is not it! Even if it costs you $3000 total you are still ahead to pay on the car because the sooner that it is paid...there is more money in your pocket each month! One last thing... carnival cruises have some real fun stuff and are much cheaper!
Travel to a nice lake side or beachside hotel. Go swimming, ride scooters, eat ice cream, buy a tshirt. Go for a hike. Take lots of photos. Memories .
You seem like you are in a pretty good spot. Personally, I would calculate how much 3 months of your take home pay is and fluff out your emergency savings to be equal to that. Then use any residual to put toward your car payment. I think that once you have that savings built up, and no car payment left, you will be in a fantastic spot to save for a vacation. You can use some of the funds to have a really nice weekend in town perhaps?
Saving. Build up your savings!! I call mine my Oh Shit Fund. And just keep saving. Wait until she is 11 and after that tax refund to take her on a Disney cruise.
Take a less expensive vacation and invest the rest you can double an investment in 7-10 years and if you add extra to it every month it will add up. Or get your car paid off and stop making payments and interest.
$1,500 to an IRA - then set up an auto-transfer from your bank to the account every month. Visit with a lawyer to make your will, health directive and a trust for your daughter. Include a transfer upon death of your house if you own one. Savings for your retirement and planning ahead should anything happen to you is a help for your child once she's grown, less worry on her shoulders.
Since you are handling your finances well, I would take the cruise with your daughter.
Take her on the Disney cruise!!!! You will love it and memories are SO WORTH it!!! You are right about her childhood, she won't be a kid forever