My Boyfriend's Windfall & Plan of Action
Confession: I have a boyfriend. We've been together for several years, and he is also in the entertainment industry. Recently, he was paid a sizable sum for an ongoing project. I helped him budget and prioritize so he could buy a number of things he needed/wanted while making the most of this money. Here's how he's done so far:
Debt: $1,700.
Retirement: $1,000 into ROTH IRA for 2010.
Emergency Fund: $10,000.
15" MacBook Pro w/ hard drive upgrade, Final Cut & MS Office + Printer: $2,545.
Fortunately, we were able to buy through Apple's education store which got us $100 off the computer, $10 off the hard drive upgrade, and $20 off Final Cut. I own MS Office, which I offered him, so that saved $200. The printer came with a $100 rebate. We made the purchase through Mr. Rebates, which brought in $21 cash back, and I used my Schwab Visa for an additional $42. (Yes, I made the purchase, but he's already paid me back.) Total price came to $2,052.
Total saved: $493!
Specialty Equipment: $800.
Found refurbished from the manufacturer with a one-year warranty for $660. Again, we used my cash back card for an additional $13 off.
Total saved: $153.
Golf Clubs:$800. $600.
Originally, BF thought the lowest he could get the clubs he wanted was $800. Then, he did some research, and discovered that he would be happy with pre-owned clubs, which could be purchased for $600.
He went to Golfsmith (2782 N Clybourn) and bought a 2004 TaylorMade iron set of 9, Big Bertha Diablo 10 driver, TaylorMade 14.5 degree fairway wood, Fusion FT hybrid, three grips, three sleeves, box of golf balls, and sizing for $464.
Total saved: $136.
He also has $400 marked for overdue dental work, and he bought a pair of shoes that were not originally part of the budget. He sweet-talked the saleslady at the shoe store into giving him 10% off, so they came to exactly $30.
I think he's been pretty wise about his purchases. He paid off his debt first, put a little into retirement, and beefed up his reserves. The computer, printer, and special equipment were necessities for work. The golf clubs and shoes were wants, but were not extravagant, and were only a fraction of what he was paid.
BF's success in handling this money is a testament to good planning. He worked and reworked the plan for the money WAY before he actually got it in his hands. I know a lot of people have a plan in case of a fiscal disaster (insurance, emergency fund, etc.), but what's your plan for fiscal success?
Debt: $1,700.
Retirement: $1,000 into ROTH IRA for 2010.
Emergency Fund: $10,000.
15" MacBook Pro w/ hard drive upgrade, Final Cut & MS Office + Printer: $2,545.
Fortunately, we were able to buy through Apple's education store which got us $100 off the computer, $10 off the hard drive upgrade, and $20 off Final Cut. I own MS Office, which I offered him, so that saved $200. The printer came with a $100 rebate. We made the purchase through Mr. Rebates, which brought in $21 cash back, and I used my Schwab Visa for an additional $42. (Yes, I made the purchase, but he's already paid me back.) Total price came to $2,052.
Total saved: $493!
Specialty Equipment: $800.
Found refurbished from the manufacturer with a one-year warranty for $660. Again, we used my cash back card for an additional $13 off.
Total saved: $153.
Golf Clubs:
Originally, BF thought the lowest he could get the clubs he wanted was $800. Then, he did some research, and discovered that he would be happy with pre-owned clubs, which could be purchased for $600.
He went to Golfsmith (2782 N Clybourn) and bought a 2004 TaylorMade iron set of 9, Big Bertha Diablo 10 driver, TaylorMade 14.5 degree fairway wood, Fusion FT hybrid, three grips, three sleeves, box of golf balls, and sizing for $464.
Total saved: $136.
He also has $400 marked for overdue dental work, and he bought a pair of shoes that were not originally part of the budget. He sweet-talked the saleslady at the shoe store into giving him 10% off, so they came to exactly $30.
I think he's been pretty wise about his purchases. He paid off his debt first, put a little into retirement, and beefed up his reserves. The computer, printer, and special equipment were necessities for work. The golf clubs and shoes were wants, but were not extravagant, and were only a fraction of what he was paid.
BF's success in handling this money is a testament to good planning. He worked and reworked the plan for the money WAY before he actually got it in his hands. I know a lot of people have a plan in case of a fiscal disaster (insurance, emergency fund, etc.), but what's your plan for fiscal success?
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