Comments on: Tough choices: Pay down debt or save for emergencies? http://www.afinancialjourney.com/108/tough-choices-pay-down-debt-or-save-for-emergencies/ From the depths of debt to a cash based existence Sun, 07 Mar 2010 22:10:04 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Kate http://www.afinancialjourney.com/108/tough-choices-pay-down-debt-or-save-for-emergencies/comment-page-1/#comment-18 Kate Thu, 04 Jun 2009 13:35:13 +0000 http://www.afinancialjourney.com/?p=108#comment-18 We all have to do what works for us and keeps us motivated. By the way, I used your link to get me some free chocolate last Friday. :) There might come a time when I decide it's smarter to have that $1000 saved for emergencies, but for now, my savings for irregular expenses is working for me when I need quick cash, and I'm able to repay myself. Once I started budgeting for those irregular expenses, it's amazing how many fewer emergencies I've had to deal with. Also, I was very surprised by how much money I actually needed on hand to cover these quarterly and annual expenses. It was a shocker, for sure, but it's amazing how much less stress one has to deal with when you know you'll have your car insurance funds ready when your 6 month payment comes along. We all have to do what works for us and keeps us motivated. By the way, I used your link to get me some free chocolate last Friday. :)

There might come a time when I decide it’s smarter to have that $1000 saved for emergencies, but for now, my savings for irregular expenses is working for me when I need quick cash, and I’m able to repay myself. Once I started budgeting for those irregular expenses, it’s amazing how many fewer emergencies I’ve had to deal with.

Also, I was very surprised by how much money I actually needed on hand to cover these quarterly and annual expenses. It was a shocker, for sure, but it’s amazing how much less stress one has to deal with when you know you’ll have your car insurance funds ready when your 6 month payment comes along.

]]> By: The Yellow Piggy Bank http://www.afinancialjourney.com/108/tough-choices-pay-down-debt-or-save-for-emergencies/comment-page-1/#comment-17 The Yellow Piggy Bank Thu, 04 Jun 2009 05:09:10 +0000 http://www.afinancialjourney.com/?p=108#comment-17 I had to make the same decision. In July 2007 i was introduced to Dave Ramsey. At this time I hadn't come up with a very solid financial plan, so I decided that I would apply the principles he teaches for one year to see how it would work out. So I have had a $1000 emergency fund for 2 years and I have paid about $45K towards debt (including interest). It has worked so far, so I am staying the course. I had to make the same decision. In July 2007 i was introduced to Dave Ramsey. At this time I hadn’t come up with a very solid financial plan, so I decided that I would apply the principles he teaches for one year to see how it would work out. So I have had a $1000 emergency fund for 2 years and I have paid about $45K towards debt (including interest). It has worked so far, so I am staying the course.

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