How DO you set priorities

[itlw8]

after CC debt is gone and you are on your way how do YOU set priorities on what to do first or all at once.

for us we have several things we need to put the money toward so I suppose we will fund all at the same time.
We are in our mid 50's our boys are grown

this is my priority list with a percentage going to each one. Does anyone see a problem I have missed ?

6 to 8 months income or the lower living expenses ( dh has offered his growing boat fund to be a start until we reach our goal then he can think about a fishing boat)

heloc 5.2% 7000 ( double payments)

mortage already doing $100 extra a month increase after #1 is 1/2 way done
every extra $100 saves me about $300 in interest would it be bad to increase before fully funded savings ?

hhr loan 2.99% increase payments

truck save for new truck it is a 97 but with a new engine

new windows $3000

replacement windows will save us money so should I move them up the list??


dh job is stable but I am self employed I am in a low income cycle right now.

with the 600 currently used to pay off cc
300 savings
150 heloc
100 mortage
and 50 ??????????

[madhen]

Great post. I'd actually have to sit down and figure it out, since I've had tunnel vision on those cards!! I actually count my HELOC in with credit debt, so it is one of those things I need to get rid of before I can start thinking of projects.

I definitely need to get a savings started. I'd need about $20,000 to cover mandatory expenses for six months, and probably anoher $5,000 just to make sure I can live semi-comfortably.

After that, though, I have so many projects that I have been holding off, I'm not sure which one I'd want to start first!!

[Lorelei]

With the economy being so rocky right now, I'd concentrate on building up savings and eliminating short-term debt (the HELOC and hhr loan?). You have good goals, but some seem like they could wait until you are even more financially secure.

[Russ]

I would concentrate my efforts (extra payments) on one loan at a time. Pay the minimums on all others.

[MomToTwoBoys]

I agree with Russ. I'd plug away at one loan at a time, instead of trying to pay huge chunks on every one of them. A debt snowball may not work the best because most snowballs are set amounts each month, but at least a variation would be good.

I set my priorities as making sure that we have some money into savings. After that, I look at what bills I can pay off first and then just toss all my extra money at the first one. Some months are harder than others and income fluctuates, plus the whole Murphy effect. Once bills are paid off, then we look at putting away 3-6 months worth of basic living expenses and put into a stockpile of about six months.

After that, I'd put into a retirement fund that's solid. I know, the economy sucks right now and you're at the age where you can't afford to lose much. I'd talk with a financial advisor though and find what works the best, given your age and your financial situation.

[itlw8]

Originally Posted by MomToTwoBoys

I
After that, I'd put into a retirement fund that's solid. I know, the economy sucks right now and you're at the age where you can't afford to lose much. I'd talk with a financial advisor though and find what works the best, given your age and your financial situation.

Luckily we have done pretty good with a retirement account. If we have paid off all debt including mortage we will be ok to retire in 12 + years We will need to move some out when things go back up but for now it stays where it is.

granted we do not fully fund my account each year so we could do much better if we were debt free.


so I would be better to pay off Heloc then car loan and THEN fully fund the 6 -8 month expenses ?

I HAVE to continue paying down the mortage or we can never retire.52,000 left

between our EF and his boat fund we only have 3 months house payment and 2 months car payment oh wow that is a scarey thought....

[Dave'sGirl]

Meg, EXCELLENT post! You have asked what I couldn't figure out how to. Personally, I am 51, grown kids, decent retirement plan, paid off ccs. My goal is to retire in 5 years. We are paying on the house to have it paid off around 6/11, and I am putting 15% into my tsp secure funds (not much growth but not much risk either).
After those two things I have a desire to have a newer paid off car, so that needs to be saved for. I'd like to do some redecorating ( we just bought new everything when we bought this house last May mainly because of the fire, we HAD nothing) New stairs to the basement and a lower level on the deck outside, new landscaping, etc. These are nothing I would do now, but after the house is paid for we could start putting money towards those dreams.

I don't think I'm helping much, going off on my own tangent, but what I am really saying is that what I did is look at my goals and use the money accordingly. The only thing I have fears about is having enough money for a newer car when the time comes. I have ignored that in my budget. My current car has 118000 miles on it, so I'm being a bit irresponsable not budgeting for that.