Back in February, I put myself on a strict budget for all variable expenses- food, car, entertainment, pets, clothes, etc. I'm going to get my Line of Credit (LoC) paid off in two years if it kills me. Then, if I find that I can maintain it, I'm thinking about keeping to that same budget and paying off the house that much faster.
Since I started living off the strict budget, I haven't always spent the full budgeted amount. I'm actually surprised and pretty darned impressed with how much I've got left over, but I'm not sure what I should do with the extra.
- Spend it like fun money - it's my reward for staying within budget
- Set it aside until I have enough for a Murphy Bed. ***
- Put it on the LoC and leave it there
- Put it on the LoC until I go to Italy, and then take it back as fun money for the trip
- Add it into savings for the Italy trip. (I've saved up enough for flights, hotels, food but not a lot of extras.)
- Put it into a different savings account without earmarking what it's for
*** I told myself when I committed to this budget that I wouldn't do any fixes or changes to the house unless they addressed structural or safety issues. However, my spare room - where I work all day - is jam packed and a Murphy bed would make things a lot more comfortable. It's a want, not a need, but I know a skilled carpenter who is looking for work and willing to give me a deal.
I've already made up my mind, but I'll wait until I hear what you say before I tell you.