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Sink fund?

September 10th, 2021 at 07:33 pm

So I'm leaning more and more to a new furnace and AC.  Our furnace is 19 years old.  It will cost us around $13k all in (another estimate) with 15% costco cash back rebate.  Includes permits and electrical work all done and disposal.

I know it would be smarter to at least use the AC from the other person and pay only $6k.  But I'm not sure that's what I really should do.  We can sell it with a new AC and new furnace.  But the money.  Do we have it? Yes.  Do I want to spend it?  No. I sort in many ways want to put it on a credit card and pay 0% for the next year.  Unfortunately they aren't offering that right now.  

I have $11,500 in sink funds right now.  We've managed to cash flow everything.  The question is do we use that up?  Do we go with the $6k option?

3 Responses to “Sink fund?”

  1. Lots of ideas Says:

    You don’t have to do all or nothing.

    You could charge it, then search for a zero percent credit offer. Or open a new card to get a cash reward up front to offset the interest. You will have enough to meet any charging requirements.

    You could pay some, charge some - although if you have a cash back card, charge it all, then pay off to maximize your reward,

    What are the HELOC rates in your area? Lower than credit card rates? Are your sinking funds earning anything? Probably not, but if they are factor that into the equation.

  2. rob62521 Says:

    I think it depends on when you plan to sell the property. If soon, then I'd go for the $6K. Otherwise, I would really think the more expensive option would benefit you in the long run.

  3. LivingAlmostLarge Says:

    More like $8k it turns out. I think we are leaning to new. Will we recoup? No but maybe it'll be a bonus during selling.

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