Here's our debt we pay a month. We pay a little bit more toward each loan except my parent's loan.
Loan 1. $15K remaining balance (2nd owned property) @ 5.39% = $200 A month
Loan 2. $21K Car payment @ 5.59% = $700.00
Loan 3. $12,573.00 remaining balance (owed my parents Down Payment towards our current home @ zero rate) = $213.00 a month.
A total $1,113.00 monthly payment.
My wife and I save an extra $1000 a month towards our emergency fund goal of $12K this year. In addition, I also saved an extra $210.00 a month towards my own personal savings account (earning less than 2% ).
My dilemma: Should I use this extra money towards paying off the car faster, which we pay the higher interest rate, or should I just continue to saving it?
In defense of saving the money, I use this savings as my day trading account online. On the other hand, 2007 has not been a good year, but not the worst either. I just broke even. So it really hasn't appreciated that much except what I put in.
I need your help
January 7th, 2008 at 05:22 am
January 7th, 2008 at 05:43 am 1199684606
January 7th, 2008 at 01:48 pm 1199713692
January 7th, 2008 at 03:25 pm 1199719502
January 7th, 2008 at 03:36 pm 1199720211
I'd also get rid of that $10/day on coffee and lunch. If that is just weekdays, that's over $200/month. Make coffee at home in a thermos and pack your lunch. You'll probably spend more like $3-$4/day, freeing up an extra $60/month that can go toward debts and savings.
January 7th, 2008 at 06:36 pm 1199730964
As far my coffee and lunches, I normally spend on average about $20 to $25 a day, which comes to about $500.00 a month budget expense. After being on site and reading peoples experiences on ways of cutting back expenses, I was eager to try and incorporate this as my main goal for 2008. So I set a achievable goal of limiting myself to $10.00 a day, which will save me about $300 a month. That's means, brewing my own coffee and bringing my own lunch to work. Whatever I saved leftover savings on $500.00 budget is transferred towards our emergency fund. The more I become consistent on this, the more I will save. I just didn't want try "cold turkey" since this has been my lifestyle for 5 years.
Again, thanks guys!
January 7th, 2008 at 10:38 pm 1199745494
January 7th, 2008 at 10:49 pm 1199746184
I think it's great that you are cutting back. Certainly, $25/day was way too much. But are you saying that bringing your own, you are still spending $10/day? If so, what are you bringing that costs that much? I pack my lunch every day and about the most I spend is around $5.00 and most days is a lot less than that.
January 8th, 2008 at 02:31 am 1199759476
Steve. No to answer your question I still pay myself $10.00 a day regardless I bring my lunch or not. But I still save that money which goes towards building our emergency fund. The incentive is for me to bring my lunch more often than eating out, so we can save more. Hopefully I can stick to this plan, and I have too.
January 8th, 2008 at 04:01 am 1199764867
January 8th, 2008 at 04:30 am 1199766605
January 8th, 2008 at 02:43 pm 1199803399
January 8th, 2008 at 10:11 pm 1199830289
January 9th, 2008 at 12:08 am 1199837329
Actually, even for sandwiches, you can do a few days of fillings in a batch: this is what delis do. And if you want to make it super easy, aliquot the filling in small containers at prep time, put 2 slices of bread in a sandwich bag (one for each day) and then you can pack an entire week's cold lunch in about 90 minutes tops. The only thing I would do every couple of days is tuna. But I eat chicken salad for a week and not bat an eye. YMMV.
I think the trick to packing a lunch is to make it tastier than what you'd buy. I get silly with my lunch, and make it all colorful and cute, and I pack stuff I really like. Check out lunchinabox.net for ideas.
*baby carrots: I know, they're just big carrots cut small and they're a gazillion times more $$. But I have yet to compel myself to make carrot sticks for lunch.
January 9th, 2008 at 03:39 am 1199849995
This past two days, I brought my lunches and save myself $20.00. I actually use to bring baby carrots and some fruits to work for snacks last summer and stop. Being in the computer all day, I do like to snack on my desk to munch on. I probably will go back to eating them sometime again