What would you do if you got $15,000 just handed to you?  What would you spend it on?  Or would you even spend it at all ?

These are some of the decisions that I am currently facing.  I recently was promised a bonus of $15,000 from the Army to stay in for another 6 years. This gets me to thinking. What in the world will I do with it to better myself?

I thought about saving it for retirement.  My wife wants to pay off some of the bills with it, but I  am wanting to do something with this that would actually make me money in the long run.  It’s so tempting to just start buying things that I don’t need.  Or maybe I will start saving for a house!

Currently we are living in a trailer.  It’s not bad. However, I have always dreamed of owning my own house!  Both of my parents were disabled and lived in a trailer just about all their lives.  I, for one, want to break out of this and own my own home.  I realize that I need to start doing something now before I get to old!

Here is my plan

1. Take $5,000 and place it in a retirement plan. Luckily I have already started saving for retirement.  Since I am in the National Guard, I can participate in a benefit called TSP (Thrift Savings Plan).  It allows me to save for my retirement, but I can’t touch the money until I reach a certain age.
2. Place $10,000 in a plan called SDP (Savings Deposit Program) – It’s another benefit for military soldiers that are deployed. I can place the maximum of $10,000 into an account that will earn 10% for as long as you are deployed.  When I get back from deployment, I will have to draw it out and pay any taxes that I earned on interest (I think).
3. When my SDP expires, place the money back into a savings account! E-Trade has a plan that will earn you 3.3% on their savings accounts.  Maybe I will place my money with E-Trade.

The trouble with this plan is that I got to follow through with it. I guess I have to treat this money like I never got it and try to invest and forget it.

I still have questions such as “Should I save for a down payment?“, “Should I save for the entire house?“  “If my income is not steady, How much should I save first ?“

Do you have any better ideas?  What would you spend it on?  I would love to hear your experiences on this topic.

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