Reply to What to do first? Debt vs Savings/Retirement

Forum Index » Money and Finances

Reply to "What to do first? Debt vs Savings/Retirement"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]OP here, I have a bonus and am willing to pay off the CC's now.  So that takes away $600 from my monthly expenses. [/quote]

Ok, but make sure you examine where  that CC debt came from.  If it's just from unemployment, then you have $600 month.  If you're living above your means, you need to examine.

1. Pay off credit card debt with bonus.
2. Use remainder if you haven't matched employer 401k.
3. Sell the expensive car even though underwater and use extra bonus to pay difference and get a reliable cheap car.  You can't afford this car. If you decide to keep it you have to sacrifice elsewhere.
4. Sounds like you are someone who would benefit from automatic deductions to key things: 401k, 529 college plans, emergency savings fund.  You'll see you have less money to play with once your basic responsibilities are covered and will be less likely to make mistakes like your fancy cars.  Cars are depreciating assets and you bought them with money you didn't have. 
5. Use a budgeting software like Mint (free) or YNAB (small fee) to help you think through things.
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics