Dh received his income tax refund...

**peanut** · 05-24-2006, 10:59 AM

and we sat down and crunched numbers on the mortgage. We want to take some of the emergency fund to combine with the tax refund and cut the mortgage by $2500cdn. That would leave us with less than $2000 to pay it out. Does it make sense to do this? I'm just a bit concerned about using the EF that way. We'll still have $1000 left in the EF by the time we're done.

Jean

**Valerie in WA** · 05-24-2006, 12:59 PM

Wow! You're really close on your mortgage. Yay!

I say go for it, IF you have carefully anticpated everything you can think of over the next few months, such as propert tax, car insurance, etc. I NEVER dip into my EF for those things, but I know some people do. If your EF is only for car accidents and broken legs, etc, I think this would be fine to do.

**canadian gardener** · 05-24-2006, 03:49 PM

Keep some in the EF, and use the rest to pay it down as long as you aren't paying a pre payment penalty.

Breathe easy, you are nearing your goal. It's ok to let it take some time, nobody is in a race so you might want to be careful about robbing too much out of the EF, since the benefits don't outweigh the risks.

I know it would feel good to be paid out, but if you can rest and relax on this, it may be safer and wiser to keep some in the EF.

**peanut** · 05-24-2006, 06:03 PM

Thanks. Our EF is for burial purposes should one of us suddenly up and drop dead. That's it. There's no where's near enough there, but right now dh is covered by work insurance that will handle this. I am not covered, but am not considering dropping dead either.LOL I'm healthy as an ox. So I think we'll be okay. Dh wants to pay into the EF big time as soon as the mortgage is paid out. That makes sense. He's suggested $10,000cdn. as a goal. I think I agree. That's 6 months living expenses here.

Jean

**my4littlebuffaloes** · 05-26-2006, 03:18 PM

I think this is a good plan Jean. Once the mortgage is gone, you can build up the EF very fast. Way to go!

Jennifer

**dolphin** · 06-14-2006, 06:34 PM

Sounds like a very good plan to me. Your goal is in sight and you are so close! WTG!

**peanut** · 06-15-2006, 07:12 PM

Doing the happy dance here! Dh actually put down $2800 on the mortgage. We have one month to go! And then there will be one big BBQ over here!

Jean

**nodmicks** · 06-15-2006, 07:18 PM

Wow how exciting your mortgage is almost gone! W t g

**leezza** · 06-15-2006, 09:11 PM

Peanut,

Excellent Job!

leezza

**jen k** · 06-15-2006, 10:59 PM

i say woo-hoo! it would be sooo nice to be debt free and mortgage free. it will let you make full use of your money. i say the large emergency fund is a good idea. maybe in a nice safe low interest paying savings account. i have some money saved in one for my EF but i also have some in mutual funds that aren't doing so hot right now. it's a little depressing, so if i was in your possition i think i would go along with dh. it's nice to have really secure funds incase of emergency (like taxes-eek., maybe it doesn't feel like an emergency to some of you...but to me sometimes it does.)