EF vs, Snowball
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| Tue, 11-11-2008 - 1:53pm |
We have about $2,500 in our emergency fund right now. I'm going to get paid on a couple of freelance projects and was planning to put every cent toward debt. I can't help but to get caught up in all the crazy economy talk though. I'm wondering if I should sock all that money into the EF just in case. I don't think DH or myself are in jeopardy of losing our jobs, but thousands of others have felt the same way I'm sure. Since his job is about half commission-based, I try to keep a little "cushion" money in our EF in case one month isn't as great as the next.
Any advice? Maybe I should split it and put half into EF and half into snowball? I hate to hoard $ and REALLY want to get our debt paid down, and this would make a dent in our cc debt but I'm afraid to do it!
Any advice??

I'm by no means an expert, but it makes since to me to do half & half.
Norma
"Patience is the best remedy for every trouble"- Plautus
I honestly believe that whatever you can do along this journey to avoid the "all or nothing" mentality will help you stay on track and make progress.
All my best,
Danni
I'd say it depends on what line of work your husband is in and what realistically happens to his commissions in a downturn. If the answer is, not much, and you have enough in savings to cover your family for a few months in case one or both of you loses your job, then I'd use it to pay off debt. If one or both of you is very likely to lose a job or have a serious compensation dive in a downturn, then I'd put it in the E fund.
Kelly
If I were you. I would check back in my records for the year and find out what the highest amount of money that your husband brought home as a salary for a month
I'm voting with the split it 50/50 people.
Becky
CL of 4th, 5th & 6th grade Scoliosis