Savings, Stockpile, or Home?

[ecgsmama]

I posed this question of three simple words with no explanation to my 5-year-old ds hoping he would be my crystal ball.

Lately, every time we come across a little extra money I'm torn between putting more into my EF (currently $7,000), my stockpile (maybe 2-3 months of boring meals), or more on the mortgage (see siggy).

He said home.

Given today's economy, what would you do? Why?

[Holly]

he has some good insight .
You have a good EF but not sure how much you need for 3 to 6 months living expenses.
3 to 6 months of boring food.
( spice it up with your imagination)
Your close to your goal on the house
I'd put it there...
jmho and your 5 year olds.. lol

[latierra84]

if you dont mind me asking.. how much are your monthly expenses?

[FrugalWitch]

Home, then add some variety to your stockpile. Just my 2 cents

[mombottoo]

I guess it depends on the interest rate you are paying on your home. If you can earn more on the money investing it, then that's the way I'd go. Your home loan interest if you file long form can be used as a deduction on your taxes. If you would feel more comfortable not having a mortgage then pay that down instead.

[JanieD]

I would also put most toward your mortgage. Your home is, in my opinion, a safety net. If the unexpected happens its easier to cut corners with the other stuff. Plus you have a good size EF. Maybe add an extra $20 for stockpiling as you find sales & such every 2 weeks or so. I like to have extra on hand since prices are climbing & sales are few & farther between.

[frugalfriend]

Check out the Total Money Makeover at your local library. First of all, put everything you can into your EF until you have reached 3-6 months of living expenses. Then when that is done, invest 15% of your income for retirement (if not already doing so) such as in a Roth IRA or 401(k). Then when that is done, attack the mortgage with a vengeance! Every little bit you can until it is paid off. When you don't have that mortgage payment any more (next year, maybe sooner!!) have that amount automatically withdrawn from your checking acct. every month into a slow growth stock mutual fund. You will be amazed at the amount you could have at retirement if you do that!

Can you tell I'm a huge Dave Ramsey fan?

[ecgsmama]

Yep...TMM is what got us on this track a little over 2 years ago. If you look at my siggy we have made great progress and I want to run the marathon, not the sprint, so I want to continue to eat away at the mortgage. However, the economy makes me anxious.

There is no other debt, the retirement savings and college savings are at the set percentage being automatically withdrawn.

I'll continue with my ds's suggestion unless he has another "vision."

Thanks for everyone's input!

[Jeanna]

I think I would take the next two windfalls and spice up my stockpile and then put anything else that comes your way onto the house. I speak from experience here. Having a house paid for and not have as much of a danger to losing it would give you a great peace of mind.

[Frugal Nurse]

HOME

My mortgage is paid. It's amazing how fast you can pay off by making extra payments. Not to mentiont he interest you save.

Hurry! pay it off!
The day I paid mine ~ it was like FREEDOM!

You have no idea until you get there.

[Frugal Cook]

My vote is for the HOME. You will save far more money in the long run by reducing that mortgage and the interest you are paying.

[itlw8]

while I first thought home Then I wanted to know how old is your car does it get great gas mileage ? If you had to replace it would you need to get a loan ?? I would put part in savings so you will be able to pay cash for a new one when needed with out wiping out your savings Then keep on hitting that mortage....

I think you need savings you do not touch and also a freedom savings so when needed it is there and you do not have to take out a loan or charge.

If your car is newer and gets 30 mpg or more then stick it all in the home.