Another budget question?

iVillage Member
Registered: 10-16-2007
Another budget question?
5
Fri, 01-23-2009 - 7:58pm
So I have EVERYTHING written down. All the ins and outs. My question is, at the end of the month, I do have about $500 left over after paying everything. Is it all supposed to be $0 after I do my budget? So should I be putting that into savings, paying down debt? I am starting the Dave Ramsey way, so I am thinking that would go into my snowball?
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iVillage Member
Registered: 01-30-1999
Fri, 01-23-2009 - 8:35pm

First finish funding the emerg. fund of 1000.00 then start debt repayment with smallest debt.


iVillage Member
Registered: 03-17-2003
Fri, 01-23-2009 - 9:59pm

It would make sense to save part of the $500 and apply part of the $500 to your debt.

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iVillage Member
Registered: 02-16-2004
Fri, 01-23-2009 - 10:14pm

Well, if you are following Dave Ramsey's plan then the first step is to save the Emergency fund of $1000. This is because in Dave's plan you never use CCs again....so you don't have the CC to fall back on should the car need repaired, the washer were to break or you need to fix the heater...and so on and so on. While the money in the savings is not earning much interest at all, it is not

 


 



iVillage Member
Registered: 08-04-2008
Sat, 01-24-2009 - 5:15pm

Lulu -

I am starting Dave Ramsey this year too. In the past I would have put that $500 on debt, but now I understand the $1000 emergency fund this year.
All my credit cards are GONE - put away and I don't know where my husband put them. I told him to shred them, so he may have done that as well.
The $1000 of mine is in a savings account tied to my checking. In case I do have an emergency, car dies on the road, etc. I have the debit card that I can use. I can then quickly move money from savings to checking to cover that emergency.
I am so proud to have that cushion there, it would take a real emergency for me to have to use it.

I am also caught up with all payment minimums at least and have insurance in place as well for health, car, home and life.

Good luck and feel free to email me from the site if you want a companion on the journey.

-Marie




iVillage Member
Registered: 11-17-2007
Sat, 01-24-2009 - 5:48pm

If I was you I would take the 500.00 and just put it aside (write a check to yourself) for at least a couple of months. You never know what is going to come up that you either forgot to put down on paper or something.


The way these gas and light companies and water companies are raising bills every month and other things too. Just because you have 500.00 on paper doesn't mean that you really have 500.00


If after a month nothing happens and you counted everything just right you can aways then send it to a bill or put it in a saving account


Mary Ann