Coming to a decision
by, 02-04-2009 at 04:46 PM (832 Views)
As I mention, in a previous post, dh company may eventually do layoffs.
I've been in real quandry as to what to do. Do I payoff like a madwoman or save.
What I have decided to do, is find a balance between both. my 1300 snowball is going 50% to savings, and 50% to debt repayment. It's the best of both worlds. I've had such great motivation with debt repayment, writing down what I spend, etc, that I hate to just stop. I like seeing balances GO DOWN. Now I might get into liking the savings amount go UP as well. But hte more we paydown, the less we have to pay in the event of a lay off.
So 50% of my snowball is now savings. Also, anything dh makes over a set amount will also go to savings. So each month, we'll be close to covering a month of mortgage payments. SO I can live with that. With any luck at all, there will be no layoff, and we'll have a nice fund sitting there until the next scare. (note not taking it out, even though DR figures $1000 is enough to start, I don't feel comfortable with it, not enough, I want mor elike $5000 as a bef).
So after losing sleep and looking at me pay schedules, debt repayment plans etc. This is my happy medium.
I already transferred my $650 into savings Well actually more because I also have a freedom account to cover those annual, sometimes, maintenance type payments that will eventually come up. So I feel a little more relaxed about it all.