Saturday, July 26, 2014

Pull the trigger?

Since finding out that G-man was not in the running for a new job, I have been in a massive funk.  I really thought this was the start of a major turn-around, and I have been wallowing in self-pity for a few days.  Not good.  And way overly dramatic.  I just get into moods...

Of course I don’t want to turn to spending money as a way of making myself feel better (but admittedly…I did some “window” shopping, and found one thing for Sassy for Christmas).  I never got around to updating my side bar for July…and we are closing in on August now….so I am just going to wait until my Blogiversary on Aug 6 to update everything.

However, I do know of a way that I could spend money for the good…and have even better numbers for the update….but I am not sure if I should do it:  take the money from holding and put it toward debt.

We have $1,500 that I had put aside to make a big, fat snowball payment (originally toward G-man’s car, but leaning toward the CC instead).  I was *this close* to making the payment when the whole job thing entered the picture.  So I held on to it, figuring if we moved, we would at least have some cash to get things started.

But now the move is off….unless another job opens up.  Which it could. Or it could not.

So do I pull the trigger and make my snowball payment….which of course is a good thing, and goes toward the future good of the finances?  Or do I hold it for a while longer, just in case……and in this scenario, how long do I hold it?  Three months more?  Six months (or until the end of the year, which is really only 5 months)?

I am not sure what to do.

19 comments:

  1. I know you don't like it when I ask this, but I can't help it. With the large retirement account you have, and the money you spend on camp and entertainment and home decor, and save up for Christmas, can't you just pay the dentist (or is it the doctor) their $150? I don't think I'd feel good about going back to the dentist if I owed money to them for that long. It seems like such a small debt compared to the other numbers you are working with, and I don't understand why you don't consider that they should be paid for work already performed.

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    1. That $150 is actually paid off....I didn't update the side bar in July. All of those numbers are totally inaccurate at the moment. My "blogiversary" is in less that two weeks, so I am just waiting to update it all then.

      And as I have said many many times before....our dentist is a large office and they have told us that over 75% of their patients carry a balance because of poor dental insurance. Yes they performed a service...and they were totally fine with us paying it off. They have never said a word about it.

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    2. I also still don't understand why you think we spend all sorts of money on home decor and entertainment. As part of the Christmas budget, I do spent about $100 adding to our collection of holiday stuff. But during the year, we don't buy much of anything, unless it is a replacement for something that is beyond repair. We spent $50 last fall buying paint/supplies to paint the living room.

      Camp acts as child care while we work, but now that the kids are getting older, this is becoming less of an issue.

      Entertainment....what entertainment?

      Christmas....yes many people think we spend too much on on Christmas (total of $1000 for gifts for 11 adults, 2 kids, and associated shipping; decor, cards/greetings, and tree). Since we don't buy much during the year, this is the one time we do. We spend about $100-$125 per kid.

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    3. Nah, you don't spend too much for Christmas. There is even more to Christmas than you are saying. I always say pay off the debt. But I also know there can be an emergency, but even still - pay the debt! There just as easily could not be an emergency and you are sitting golden with debt relief!

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  2. Do you have an emergency fund? Or is that $1,500 effectively your emergency fund right now? If I were you, I'd keep it if that's all there is. If you have other money set aside then I'd go ahead and use the money to pay off some of the debt.

    I think an emergency fund is important - then if something comes up, your debt payoff won't be thrown off.

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    1. Our EF is closing in at $3k (I never felt that 1k was enough). Plus we have a savings account in connection with our checking account that we use as a mini-holding area (for ex, if we get FSA payment before a bill comes) and as a buffer.

      This $1500 is purely "extra." If we do move however, I am doubtful that I would completely deplete our EF. Moving would entail a trip to secure housing (which is not tax deductible), and then moving costs for our stuff, and all related deposits, shipping, etc.

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  3. I would hold, but I am a holder as I am always waiting for the other shoe to drop. I know how you feel getting so excited for a job that never takes place, but I have learned one thing over my life time it is that things happen for a reason. This will turn out to be a blessing, and something better is around the corner. Chin up my friend, go get yourself something, small like a new piece of jewelry or a new top a manicure. Give yourself a treat because you deserve it.

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  4. At first I was tempted to ask which has the higher rate of interest (car or CC). However, if you do feel that a move is a possibility then I think I'd lean towards to the credit card. If you did end up moving, at least you could use the card then to pay for some stuff (as long as you were disciplined enough to not spend more than the 1,500, obviously). I just know that any time I've had extra money and held on to it, planning to do something at the end of the month, or after I've had a chance to look at the number or, or, or...every single time, it has ended up being mostly frittered away. So I'd definitely give a definite vote for using it to make a payment to something as soon as possible!

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    1. Car and CC have almost same rate (9.99 vs 9.24). A move will be way more than 1500.....that would only pay for plane tickets for house hunting.

      I am not worried about spending it....it is in an on line account separate from everything. I also am not worried about room on the CC.....we have 80 of credit.

      I just don't want to put more on a CC or use more of the EF than necessary if we move. I just don't know when that would be....

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    2. What do you mean by "80 of credit"?

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    3. It should have said 80k of credit. I was typing on my phone. My point was that I am not worried about not having enough credit (if needed) to fund a move.

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  5. I'd save it... bring your EF to 5,000.

    HS

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    1. It wouldn't quite be that high....LOL

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  6. I'd use at least half, if not all of it, to pay down debt. Why keep adding interest to you debt unnecessarily? If you do move and have to charge things to your cc so be it but in the meantime you aren't paying extra in interest.

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    1. That is my sticking point. I am paying interest now. But part of me also says I would like to NOT have to charge a move....if it ever comes...which it could....or may not. LOL

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  7. I would throw it at G-man's car loan because it has the lowest balance. Given a choice, I opt for one less thing to juggle.

    You're going to be under 60k when you update, I'll bet. :)

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    1. The car has been the target of snowballs. I mentioned the CC because we are paying more interest monthly on that because of the balance (the 2 interest rates are almost the same).

      And yes...it is under 60k. :)

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  8. I'd say top off your EF if needed, add any slush funds for the foreseeable future, and then pull the trigger and pay stuff off. That's what I do, so I don't change my mind once things do happen (which they always do).

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    1. It won't pay anything off completely...but now that the job opened up again...I am torn between paying stuff down....or using it toward possible moving costs (which may include stuff we have to do to the house, house hunting, etc).

      The joke of this entire situation....by Monday I had decided to just use the money toward the car....and a few hours later the job opened.

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