What would you do??

iVillage Member
Registered: 05-26-2004
What would you do??
11
Mon, 02-23-2009 - 6:05pm

Hi there.

I've been lurking for the most part but now I am looking for advice.

I have a efund of about $1500 and I put $150 once a month, our state income refund will go in there as well. We are also TRYING to do the Dave Ramsey snowball system. Here is our delima. At my husband's job they are starting to lay more people off (so far only 1 person has been laid off, another took a cut in hours and one more has to take 2 weeks off a month) and my husband just go this job in August. Would we be wrong and instead of snowballing the extra money, just put it into the Efund in case he would get laid off? We have a couple of things worked out in case that should happen, but I just need some encouragement on this decision.

Do you think I need to do anything else in case this happens??

BTW, I'm a SHAM of 3 if that matters

Kelly

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iVillage Member
Registered: 07-05-2006
Mon, 02-23-2009 - 6:16pm

I think we are all waiting on pins and needles here waiting to see how our lives will pan out in the next year or so. I would be really worried that if something happened to your husbands job, you wouldn't be able to afford your bills. I think we all need to look out for ourselves and if that means putting as much money into savings as possible to cushion you, instead of putting everything towards debt, then I'd do it. Just imagine what you would do if Dh lost his job or even had his hours cut! Would you look back and say that you were glad you put extra money towards credit cards, or be happier that you placed it in savings.

So if I were you, I'd snowball into savings.

iVillage Member
Registered: 01-30-1999
Mon, 02-23-2009 - 7:01pm

I would save it too.


iVillage Member
Registered: 12-29-2008
Mon, 02-23-2009 - 7:46pm

Hi Kelly,


I agree with the previous posters.


However, I would take into consideration your interest rate on outstanding debt.

iVillage Member
Registered: 04-12-2007
Mon, 02-23-2009 - 9:42pm

I, too, agree with the others.

iVillage Member
Registered: 04-10-2003
Tue, 02-24-2009 - 7:34am

I agree with all the others. If you are uncertain about jobs, then you need to put everything you can in savings to get you through an unemployement should it happen. If it doesn't and things turn around then you can take those savings and dump them on the debt at another time. In the meantime you will have a little bit of peace knowing there is a safety net!


Good luck. I hope you don't have to worry about it!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 11-17-2007
Tue, 02-24-2009 - 8:10am

When I was little which was years ago. About every few years my dad's factory

iVillage Member
Registered: 01-25-2009
Tue, 02-24-2009 - 9:11am

Mary Ann,

It is interesting you mentioned how your mother dealt with these situations. And I recalled from another thread you said you used the "Mary Ann's plan" (as supposed to Dave Ramsey,etc.) There is a lot of truth to it, as I learn most things about debt management just watching my grandmother and mother, and it seems to to work pretty well - no credit card debt, a 20-year student loan which I pan to (and on-track) pay off in 5 years, and a modest mortgage (what I owe is less than 150% of my annual salary).

There is so much to be said about good old fashion wisdom!

iVillage Member
Registered: 11-14-2008
Tue, 02-24-2009 - 11:42am

With three kids at home to feed and you not working I would save 6 months of living expenses then keep paying down the debt. If it works out that DH does not lose his job in the long run, reward yourself and dump 3 of the6 months of living expenses on the debt.



Avatar for fire_bug
iVillage Member
Registered: 03-25-2003
Tue, 02-24-2009 - 12:30pm

I'd totally put it in the efund. If he loses his job, you're going to need cash. I know when my DH was unemployed, Unemployment wasn't even enough to pay the mortgage, let alone our other expenses. If he loses his job in this economy, you have to assume it will take him a while to find another job. If you'll be able to pay off any of your debt, do it. Otherwise, just keep paying the minimums or a little more and put as much as possible into your efund.

That's what I would do.


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Avatar for fire_bug
iVillage Member
Registered: 03-25-2003
Tue, 02-24-2009 - 12:37pm
Another thing you might consider doing is looking for a part time job on weekends or whenever your DH is home (so you don't have to pay for childcare). You can put that money into the efund as well and if the worst happens, you might be able to increase your hours. The advantage to one parent staying at home is that you have two potential income earners.


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