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Thank you for the great advice

May 22nd, 2019 at 03:49 pm

I received my $11 survey check finally. I really wish they would make the funds available direct deposit. But I’m not complaining it extra cash.

Now I’m trying to decide if I should throw the $11 at my EF, CC9 or my Vanguard account. I need about about another 6k to have six months of expenses. Unbelievable, $11 and I’m struggling with this. πŸ™„πŸ€¦πŸ½β€β™€οΈ

I want to say thank you to this group for chiming in on me opening my retirement account. I had heard of the conversation but for some reason I had no clue exactly what it was. I liked the Roth due to the delayed tax but as Monkey Momma pointed out the traditional may be best for me saving on my taxes, especially as I’m paying down my debt. I’ve decided to throw 2% each pay period to the Roth. Once CC9 πŸ’³ is paid, I’ll throw 3% to the traditional and 2% to the Roth, since it makes no sense for me to now close the account, unless you all have another suggestion, I’m open. But right now it’s 2% until CC9 πŸ’³ is paid off. Once CC10 πŸ’³ is gone, it will be 5% to both and any extra cash will be split between both. Once the student loans are gone, hopefully three years, I can drop 15-20% to these accounts.

Other news, last night I hosted bible study πŸ“– and provided snacks for $13.36. I was able to find reduced produce on sale and used my healthy rewards card, saving me another $1+. I almost spent close to $30 on prepackaged fresh fruit but remembered I’m on a budget and I needed take my time and find the most cost effective snacks. When ever I’m in a rush, I over spend.

I went to a job fair today for my organization, made sure I packed snacks and drinks so that that way I was not tempted to purchase over priced snacks and drinks. I also drove home to have lunch. It makes a huge difference when you pay in cash πŸ’°. I have $20 left in my dining out account and there was no way I was going to waste it, I lost $40 over the weekend, forgot my lunch Monday, and spent $10. So I’m not a happy camper.

4 Responses to “Thank you for the great advice ”

  1. rob62521 Says:

    Amber, you have done a great job on reducing your debt. I'm sure you will do equally well as you research retirement accounts. You are good about learning and studying.

  2. creditcardfree Says:

    Well, you could split all found money three ways, but I would have you check with Vanguard on the minimum contribution. It may be $50 or $100 a time as a minimum.

    While I know that you may need more emergency fund cash, want to pay down your mortgage fast, pay off credit cards and now save for retirement, I think it's important to maintain some sort of focus, so that when extra money comes in you have a plan. It appears you just go based on fear at times. While fear is a great motivator it may not be helping you make good progress, if you are not focused.

    For me it helps to step back completely on what I have been doing and rework the budget again. What is our net paycheck, what are the payments we are obligated to make (the minimums), are there any of those fixed payments I could cut out (usually services or subscriptions)? Subtract those out along with estimated variable expense such as utilities, fuel, groceries, personal care, ect. What is left that you have to work with? What are your goals? Can one get less attention for a while to make progress on another? Which one would make you the most happy to complete?

    In your case my thoughts, based on not knowing a lot really, is that you need to keep the credit card debt the main focus. The sooner you get out of credit card debt the sooner you can invest more for retirement. You do have an emergency fund, so maybe extras like this $11 check can be dumped there. Extra as the end of a pay period goes to credit card debt. If you insist on making extra principal mortgage payments, I'd pick an amount and keep it the same until the next time you reevaluate your debt. And with retirement, if you are going to start making this part of your budget, also pick an amount that you commit to monthly and have it auto drafted to your account. Maybe you would like $X by the end of 2019, take that amount and divide by the number of months remaining in the year, adjust after your final 2019 contribution for next year.

    Please take advantage of financial calculators to help you know who fast you might pay off debt, what amount will it take to get the debt paid off by X date. I'm cheering for you!!

  3. creditcardfree Says:

    P.S. I may be wrong on the miminums with Vanguard...I can't seem to find anything. I guess just try it and find out!

  4. LuckyRobin Says:

    I think you are dividing your focus too much lately. CC #9, EF, retirement, and extra to your mortgage. That's very scattered and will get you nowhere fast. You need to refocus quickly. You have nearly $10K left in credit card debt. I want you to think about something right now. If you were to take $6005 from your EF, plus $291.81 from your Fun/Vacation fund, plus $354.26 from your Christmas Club fund, plus $35.54 from your sorority, plus $66.26 from gifts, plus $867.27, plus the $11.00 you would have $7595.60 to put onto your credit cards. Today. That would leave you with a balance of $2318.81. How fast can you pay off $2318.81 after that if you throw everything at it? I'm thinking pretty darn fast, Amber. And then how quickly could you rebuild all your funds before tackling your student loans? Also, pretty darn fast. Do the calculations. I'm just saying take a hard look at your priorities and then yank them back into place.

    Also, I think it was you who was wondering about your FICO score getting worse. If so, it would be because the amount of available credit you have is extremely high, which actually makes you a higher risk than when the cards were charged up that you could suddenly go and charge them all up again tomorrow. That marks down your FICO score. I would start cancelling credit cards. I would suggest closing the store cards that are paid off. Keep at least one of the two Citis, probably the one with the lowest available credit and the BOA open for now. You'll also take a hit when cancelling, but it should recover within six months to a year and get much stronger.

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