Feeling Overwhelmed

iVillage Member
Registered: 07-14-2008
Feeling Overwhelmed
6
Tue, 12-02-2008 - 9:14pm

I thought that once we had our credit cards paid off, I would feel such relief. I am glad that we have taken care of them. But, I am still overwhelmed by the next steps, and not sure how to go about it. DH and I have set two goals. One is to have cash to pay off my car ($9000 by May, 2010). Currently, I have $3000, so only $6000 to go. Another is an emergency fund of about $17000. But, we are confused on how to go about it. Should we save as much as we can, and put it towards the car. Once that is done, we can pay it off, and then use the money to start saving the emergency fund. Or, should we do both at the same time? We do have $2000 in cash set aside for any emergencies that come up. Our jobs are secure at this time, as far as we know. We do realize that nobody is completely safe in this economy. What are your thoughts? I think that we are having a hard time because we have never thought about saving such big amounts before.

Thanks so much
Tara






iVillage Member
Registered: 01-25-2006
Tue, 12-02-2008 - 10:25pm

Hey Tara,
I think it sort of depends on what you are intending to do if you don't have the $9k in May '10. I personally would not get too bogged down in what money is being saved for what. That's 18 months so I would just stuff it in one accounts and know that you are going to tap it for $9k in 5/10. Is there any sort of financial advantage to paying the car off early? I thought you'd said that was when your lease expires so I assume not.

Is it helpful to think that your next goal is really $26k and not worry about the 2 goals?

Peg

iVillage Member
Registered: 11-17-2007
Wed, 12-03-2008 - 12:20am

For me saving and paying off bills goes hand in hand. I save money out of each check we get then to I pay the bills and snowflake what I can.


If you got the money extra divide it in half and save half and put half on the car.


Mary Ann

iVillage Member
Registered: 03-26-2003
Wed, 12-03-2008 - 5:21am
With the $2000 in the bank, I think you're safe to put all you can toward paying off your car. You may be able to pay it off quicker than you think. ;-) After that's done, you can put all you can toward your e-fund.
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iVillage Member
Registered: 03-26-2003
Wed, 12-03-2008 - 10:24am

Hi Tara - I think it generally takes years to get the appropriate e-fund in place.

All my best,
Danni

iVillage Member
Registered: 11-14-2008
Wed, 12-03-2008 - 11:06am
I would do half and half as well. You will have the amount saved for the car sooner than 05/10 then you can double up on the emergency fund. Then what? LOL. That is only a year and a bit away. So many choices! Retirement, another car fund, education, or a house?


iVillage Member
Registered: 07-14-2008
Thu, 12-04-2008 - 7:15pm

Thanks so much for your replies. I think for now I am just going to put the money in an account, and vow not to spend it. I don't need to make this decision right now. I am buying my car off a lease, and right now there is no interest. Things have been stressful for me at work, and busy at home. So, I think that everything has been worrying me.

I appreciate your support!
Tara