Reader Had It Her Way and Won! by Mary Hunt on Creators.com

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Reader Had It Her Way and Won!

Dear Mary: I won a sweepstakes from a Burger King online game. I won a $5,000 American Express card, which I want to use wisely. We have no unsecured debt and a new mortgage at 7.5 percent. Our monthly payment is $1,900, and the total amount financed was $160,000. Should we pay down the mortgage, save it for the larger vehicle we are going to need soon (we have six children) or invest the $5,000 for the future? If I should invest, what is a safe investment? — Hannah B., e-mail

Dear Hannah: Congratulations on your win! As for your question, you left out one important piece of information: Do you have a contingency fund to cover all of your bills for six full months if you become separated from your income or are hit with some other financial challenge? Most people don't. I suggest you use the lion's share of your winnings to jump-start your contingency fund, which should be about $10,000 for the average family.

That said, I believe that life is to be enjoyed. In an act of gratitude, I suggest you give 10 percent to your church or a charity that holds special meaning for you. Take another 10 percent to pay for a special outing for the family, and save the balance. I'd put it into an online savings account or an account at your bank or credit union. If you have a contingency fund and you will not need this money for at least the next five years, investing it may be something to consider. Because I am not an investment counselor, I suggest you go to http://www.vanguard.com, get the toll-free number and call to speak with one of Vanguard's noncommissioned counselors about the best place for you to invest.

Dear Mary: My husband and I would like to take our two grandchildren and their parents to Disneyland.

The price I was quoted was more than $9,000, which is more than we can afford. Do you know how to make such a trip more affordable? — Christine W., e-mail

Dear Christine: Excuse me while I pick myself up from the floor. OK, now where were we? Oh, yes. We were talking about spending a small fortune on a trip to Disneyland. I don't know where you live, but apparently, this will involve air travel. You are not a party of 20, so I'm sure you can beat that price.

I'd skip all other options and head straight to http://www.costco.com. Click on "Travel." Costco Travel currently is offering several Disney travel packages, including add-ons for hotels and meals.

Do an Internet search for "Disneyland cheap" to find out what others have discovered for how to visit the happiest place on earth without losing your shirt. Also, during 2009, admission is free for people on their birthdays. I hope that you hit the park when at least one in your party is having a birthday!

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including "Can I Pay My Credit Card Bill With a Credit Card?" To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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