Money management opinions

[JGjo]

i need some extra opinions on this since my fiance and i are disagreeing about what to do with this $500.

i have two credit cards that carry balances. i've been paying more than the minimum on them, so no problems there. i'm getting married in august and put the $500 in savings (where i have nothing cuz i've been putting all of my money towards debt to pay them off quicker). however, since we're moving in together for the first time and never lived on our own before, we need money for furniture and other stuff obviously.

i was thinking: my $500 isn't even totally necessary since he's the one with the savings for it (enough to buy our big purchases), so why not put that $500 towards the credit card that has a $450 balance and take a weight off of our shoulders? he's saying he'd rather have cash. i told him if we absolutely NEEDED that money, i have my credit card for backup.

this was only one paycheck, too. i have 3 more paychecks til i quit my job to get married and move and then to find another job where i'm relocating.

what do you think? it has an apr of 13% or so. give or take 1%.

thanks so much!

[EmilyD]

IF you already have your baby emergency fund ($1000.00) I would put it toward your cc debt.

[EmilyD]

Forgot to say, not much sense paying off your credit card to charge it back up again though.

[Frugal Nurse]

yeah.. you're getting married!!

I think I need to suggest a great book. Tightwad Gazette. It's dated for sure - but the concepts are still the same.

Second You're not in a jam right now so some money management books might help. Dave Ramsey, Suzy Orman. Things like that.

But here's what I would do.
You said you don't have any savings?
$500 in New York isn't a heck of a lot. But it's a start to the recommended minimum $1000 emergency fund.

You're paying your credit cards and not having a problem? then continue to pay them off and keep yourself an emergency fund. SEPARATE from the man.

Another thing. Yeah! you're moving in together.
Buy things used, thrift, free, freecycle, yardsale, and scrounged.
You can get into an apartment REAL cheap that way. I got all of my daughter's apartment needs from soup to nuts for under $300.

DON'T USE A CREDIT CARD FOR BACK UP!

The only time you'd NEED something is food, clothing and shelter. Anything else beyond that is a 'want'.

Know the difference if need vs want and you'll do just fine.

If you are quitting without having a job lined up - you'll need to be sure you have already at least 3 months worth of expenses saved.

You have 3 more paychecks to do it in.

Don't depend on the man to have that for you when you're married.

Keep the cash. Pay down the cc with extra payments. Stop using the card altogether and don't buy anything unless you have cash.

Have a happy wedding! I love weddings!







.

[Nishu]

Originally Posted by EmilyD

Forgot to say, not much sense paying off your credit card to charge it back up again though.

I agree. I think it'd really damage your momentum to use that money to pay your cc down and then charge it back up after you get married. It'd probably save you a few bucks, but the morale issue is what I'd be concerned about, you now?

I don't know. Honestly either decision wouldn't make or break you. It really depends on whether you can follow threw with not blowing it and not running your cards back up.

Anyway congrats on the wedding. =)

[ravenmaniac]

I'd put it toward the cc. Congratulations on your up coming marriage. I wish you the best.

[kcsmom76]

I would say put the money in savings and leave it. You will be out of work a little while until you find another job. I also say you should save as much as possible until you quit your job. HTH!

[JGjo]

thanks so much, everyone, especially the congrats and tips

he has about $8,000 dollars saved up and we're gonna be living in MISSISSIPPI, so it's not as expensive as new york, that's for sure so i'd say we have an emergency fund. i think we're doing okay for 21 and 23-year-olds.

i'm not paying down the CC just to charge to it again. i was just telling talking about in case of an emergency, it's there. i trust myself not to use it, especially with him as my husband. he'd kill me.

THANKS AGAIN!!!!

[Jenna]

I would save the cash. Moving is expensive. You need a deposit, first months rent + other expenses:

- moving truck rental???
- possible utility deposits
- groceries
- apartment stuff
- utility payments
- renter's insurance
- etc.

Are you paying rent? utilities? groceries? gas money? car payment?

Can you afford those if you can't find work right away in your new area??

Save the money (and pay minimums on the c/c's). If you get a stable job right away, you can go back to attacking the c/c's.

[missmanny]

Hi,

Congratulations on your up comming marriage and moving, things sure are exciting in your life at the moment!

If this were me I would use the money to pay out the credit card... sounds like you have a bit of money tucked away - well fiance does anyway and I aume that if for your future together.

If you paid off the credit card then you could put the money that you would usually pay to the credit card into savings and it will be up to $500 in no time!

Thats my opinion - I think that the more debt free that you can be when you enter the marriage then the better you will feel, and as you said if you are in a dire emergency and the other money you have won't cover it then you could always use the credit card.

[Greebo]

Originally Posted by JGjo

however, since we're moving in together for the first time and never lived on our own before, we need money for furniture and other stuff obviously.

I'm keying into this one specific statement, and addressing this to all young couples getting started in life.

I would like to suggest a bit of a paradigm shift here. But first, a story...

Back in the old days, 60 some years ago, when consumer debt was almost unheard of, the tradition of Wedding Presents was used as a way for friends and loved ones to help a new, young couple just starting out establish their new household.

Today, with so many young couples living together for years, financing everything, wedding presents almost seem superfluous in many cases, and we've forgotten their original intent, I think.

Anyway, the paradigm shift I'd like to suggest is this: DO NOT EVEN THINK OF USING CREDIT TO BUY STUFF YOU "NEED".

Here is what you and your spouse-to-be NEED to start out:
- A roof over your head
- A basic kitchen
- A few pots and pans
- A bed, with linens and such
- Somewhere to sit to eat
- Somewhere to sit to relax

(I don't include clothes and such because you already have those)

You do not NEED much to start your life. What you do need can be found fairly inexpensively, by renting, and by shopping around at garage sales and flea markets.

Yes, this all sounds extreme, I know - but I want you to think about this, very carefully, because I, for one, am sick of seeing young couples starting out their lives together on a path that will lead to financial misery. Remember - the NUMBER ONE leading cause of divorce today is money trouble.

Here's my solemn, honestly wish you the best possible life in the world advice: PAY CASH. If you can't pay cash, you can't afford it.

Living within ones means doesn't mean being able to make minimum payments, or even MORE than minimum payments - it means being debt free at the end of the month, with money left over.

So please, please, please, for your sake and your spouses, do not think about using credit "just to buy a few things you need". Because before you know it, you'll have that new couch you need that costs $600, if you finance it, along with the matching easy chair, the entertainment center, the dining room furniture, the nice bedroom suite, the appliances, and all the other stuff that our grandparents spent a lifetime accumulating, and come the end of the month you'll have another wedding present. A big pile of bills. A pile so big, with so many different people saying that you have to pay this much, minimum, that your paycheck will fly out the door in chunks of $50 and $75 and $128.13 payments.

And that $600 couch will end up taking you 4 years to pay off and costing you about twice as much.

So for the specific original post, I agree with the advice to pay off the debt, and pay cash. And may you and your spouse have a long, happy, and financially worry free life together.