Friday, June 26, 2015

What Would You Do With an Extra $170 a Month

Found out today that I will be getting an extra $170.00 a month.  $85.00 semi monthly.  Would you put the $$ towards debt or savings or both?  Our savings is woeful but I'd also love to put more towards debt.  I figure some of you frugal gurus would have some opinions.  I'm kind of leaning towards putting it all in savings until I reach a certain amount then put towards debt.  What say you?

3 comments:

  1. That's $2040/year. Not asking you to share your particulars, but I'd look at what my reality was, if you aren't already clear on those numbers. How much (again I don't want an answer) are your living expenses? How much debt do you have? Have you been paying it off/down? Do you have ANY emergency fund? Are you living beyond your means and need to cut back? Lots of things I'd review first, then come up with a solid plan, attacking the high interest stuff first, but also setting aside some savings if I didn't already have some to fall back on. HTH

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  2. I again with CTMOM.....hard to recommend a course of action if we don't know your debt amount, emergency fund amount and your retirement fund amount.
    Generally speaking though, you need to figure out how much of an emergency fund would make you comfortable.....put the extra $ into the EF until funded fully, then throw all the extra $ at the debt, paying down highest interest rates first. When that is done, throw that much more into retirement savings.
    And for goodness sakes do whatever you have to to stop taking on more debt.....otherwise you'll never get anywhere with your finances. HTH too.

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