http://www.automaticfinances.com/emergency-fund-or-debt-free/ Money management for the 21st century Tue, 07 Feb 2012 06:31:05 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.automaticfinances.com/emergency-fund-or-debt-free/comment-page-1/#comment-9579 Spider Thu, 13 May 2010 07:16:38 +0000 http://www.automaticfinances.com/?p=1621#comment-9579 Given how hard is to even save $1000 given all my debt payments, I think being debt-free is more important. However, I found that what Dave Ramsey says is true. Once you start paying down debt, something crazy happens, and you end up using your credit card to take care of it. So having that $1000 on hand is really important to keep the momentum going. You gotta understand, Dave's advice is for people in a real mess. And I'm one of them. Given how hard is to even save $1000 given all my debt payments, I think being debt-free is more important. However, I found that what Dave Ramsey says is true. Once you start paying down debt, something crazy happens, and you end up using your credit card to take care of it. So having that $1000 on hand is really important to keep the momentum going. You gotta understand, Dave's advice is for people in a real mess. And I'm one of them.

]]> http://www.automaticfinances.com/emergency-fund-or-debt-free/comment-page-1/#comment-8891 Kareen Sat, 17 Apr 2010 12:21:03 +0000 http://www.automaticfinances.com/?p=1621#comment-8891 I have $23K in credit card debt and $106K in a savings account - I plan to take $23 from the savings account and pay off the CC debt. I will be completely debt free since I owe nothing else (house or car). I have $23K in credit card debt and $106K in a savings account – I plan to take $23 from the savings account and pay off the CC debt. I will be completely debt free since I owe nothing else (house or car).

]]> http://www.automaticfinances.com/emergency-fund-or-debt-free/comment-page-1/#comment-7522 Ken Wed, 03 Mar 2010 12:10:40 +0000 http://www.automaticfinances.com/?p=1621#comment-7522 I think Emergency Fund is a higher priority than being debt free. In fact, you can't get debt free without one. Without one you go further in debt when the next 'emergency' happens. I think the emergency MUST PRECEDE being debt free. You must also maintain one after being debt free so you can remain in that position. I think Emergency Fund is a higher priority than being debt free. In fact, you can't get debt free without one. Without one you go further in debt when the next 'emergency' happens. I think the emergency MUST PRECEDE being debt free. You must also maintain one after being debt free so you can remain in that position.

]]> http://www.automaticfinances.com/emergency-fund-or-debt-free/comment-page-1/#comment-7365 Zak Hancock Wed, 24 Feb 2010 12:44:09 +0000 http://www.automaticfinances.com/?p=1621#comment-7365 In my situation, I am 24 and I have no credit card debt and only student loans chipping in to my net worth, I made the decision to set up the emegency fund. My interest rates are decent (about 5 %) and I have them set up for automatic payments. I set up 5 months of income in my emergency fund, and now I am making double or triple payments on my loans. I did not think it made sense for me to be doing this without 5 or 6 months of income in a savings account however. Inevitably, the engine in my 13 year old F-150 would blow up, and I would not have any resources to buy a new truck. I would have less debt, or maybe even be be debt free, but I would be taking a taxi everywhere. Doesn't make sense to me. This way I am sleeping well at night, and crushing my debt s fast as possible with the security that an emergency fund provides. In my situation, I am 24 and I have no credit card debt and only student loans chipping in to my net worth, I made the decision to set up the emegency fund. My interest rates are decent (about 5 %) and I have them set up for automatic payments. I set up 5 months of income in my emergency fund, and now I am making double or triple payments on my loans. I did not think it made sense for me to be doing this without 5 or 6 months of income in a savings account however. Inevitably, the engine in my 13 year old F-150 would blow up, and I would not have any resources to buy a new truck. I would have less debt, or maybe even be be debt free, but I would be taking a taxi everywhere. Doesn't make sense to me. This way I am sleeping well at night, and crushing my debt s fast as possible with the security that an emergency fund provides.

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