Glad to hear you made a decision. I know you said you were going to put the money in an envelope but may I suggest you take $150 or so and get an overhaul. The bike is over a decade old and hasn't had the cables replaced or the hubs/bottom bracket/headset overhauled and now may be the time. Even if you purchase something new at the end of the year, you will have this Trek as a back up bike. Bikes do needs some type of investment to keep them going and running in top shape.
Happy cycling.