Paying down the bare minimum each month may be an option for some but not others. My 0% balance transfer offer is set to expire in June so I want to pay my debt down as much as I can before then. Then again, I am fortunate enough to have an emergency fund topped up already.
It's all about striking a balance. Eight months EF for someone in financial distress is like telling them to climb Mt. Everest! Planning for periodic expenses (e.g., car insurance), setting aside money for "life happens" expenses are key steps to financial stability. Once that plan is in place, AND not incurring credit card debt, create a plan for methodical debt reduction. Suze has gone from one extreme to the other. I respect what she has done for so many in terms of awakening them to financial realities, but don't always agree with her advice.
Yes, I wonder about that, too. I obviously think that an emergency fund is important, but not paying down your credit cards doesn't ensure that they won't lower your limit anyway. Hm.
Like those people with metal detectors in the park, I am so worried that this would be a hobby that would border on obsession for me. But it sounds like so much fun!
Hey Linsey this is super awesome! You look cute, too!! I was kind of confused by the Condoms title, but then I read Will's scan, and it made more sense haha.
I've been using Just One Club Card for about a year now, and been very pleased with it. The only things I've not been able to make it take are my library card and my Hancock Fabric card.
There is something about this that I find very unsettling. While I think it's okay to focus on an emergency fund, "let[ting] them wait for their money" is playing with fire.
You have a hefty emergency fund, good for you. But how much of that are you going to spend paying off the accrued interest on your credit card balance after company raised your interest rate? It just doesn't seem very smart or penny-wise.
this might be a good idea. But if you're living beyond your means and your CC balance is growing every month, you should work on THAT problem. I don't want a huge EF and huge debt. Then you need a bigger EF, because part of if will have to go to service the debt if the worst happens and you need to tap it. That seems counterproductive to me.
To clarify my post above...it was directed to the few posters and readers who think teachers have a cushy job, with all this free vacation time. They make it sound like we've won the lottery. And, they won't even take the time to walk in our shoes. Anyways, I am grateful for the article and the many comments here who shed light on the reality. Thanks guys!
Time off doesn't mean that teachers are not working on grading, planning lessons, buying resources, writing curriculum, etc. Please don't be so naive to think that because your kids aren't in school that teachers are not working. Please, get accurate information before you assume things.
Laws nowadays require continuing education for teachers so that they can keep their certification.
In one school district in CA -- so I've been told anyways -- teachers have to buy their own liability insurance.
Have you spent a day on the job with a teacher? It's not all a picnic as some may assume. It's certainly not at all like babysitting.
Thanks so much for everyones patience! As you can imagine haveing your site go down is a pretty scary thing. Thanks to Linsey and Wisebread for the wonderful post! The website is now up and fully functional! I hope you enjoy and if you have any questions please don't hesitate to ask!
i watched this eppy, and breathed a huge sigh of relief. it's what i had been doing anyway. who has funds to throw it all to these cc companies? like suze said, they'll wait for their money. i'm happy to indulge them with that wait. 8 months of savings is hard to get to, but as long as i'm contributing to my account every paycheck, i'm satisfied. it all adds up.
It still sounds like a highly dangerous proposition, making such a one-sided argument, but the way you put it actually gives it a decent point.
This is the first month I'm not going to be paying my entire credit card balance off fully, and only because my emergency fund has been almost entirely wiped out. It's a scary time but when I need to have cash in my checking account for things like rent and student loans that I can't pay for with my credit card, having that little breathing room on the other side of the credit equation is all that's keeping me from having to borrow money from my relatives, which is the second to last thing I'd want to do (the last thing I'd want to do is borrow money from my friends).
Be assured though that as soon as things level out I'm throwing everything back to killing that CC debt.
Meanwhile, I dunno about an 8-month emergency fund. I'd say 3 months or so is pretty good, at which point you can find a nice balance of savings and debt reduction that's right for you. In fact, with interest rates for savings so low, it might not be all that wise to put money in there instead of debt.
Nursing homes here locally were poor choices when mom was slowly succumbing to her dementia.
Through the magic of the Internet I found a group of retired U.S. expats in Mexico, including a doctor and his wife, a nurse, both of whom had worked in long-term care.
Mom was placed in a local facility in Guadalajara which had twice the caregiver/resident ratio, for half the cost of any other facility I found here in the U.S.
Our entire extended family was very pleased with the care mom got until her death 6 years later.
Reducing unemployment insurance is not a solution to get people back into the workforce or fix this economy, how about we focus on the other side which is increasing the amount of jobs available?
If there were more jobs out there, fewer people would be unemployed and less money would be taken from unemployment insurance.
Perhaps we should talk more about fixing the cause instead of the effects?
Paying down the bare minimum each month may be an option for some but not others. My 0% balance transfer offer is set to expire in June so I want to pay my debt down as much as I can before then. Then again, I am fortunate enough to have an emergency fund topped up already.
i may go out to find gold instead of going hiking.
Well, now you've done it.
It's all about striking a balance. Eight months EF for someone in financial distress is like telling them to climb Mt. Everest! Planning for periodic expenses (e.g., car insurance), setting aside money for "life happens" expenses are key steps to financial stability. Once that plan is in place, AND not incurring credit card debt, create a plan for methodical debt reduction. Suze has gone from one extreme to the other. I respect what she has done for so many in terms of awakening them to financial realities, but don't always agree with her advice.
I didn't share because I'm selfish. Any free condom resources will be kept to myself. Less competition that way. :)
Linsey Knerl
Hey Andrea you're in Washington, right? They just legalized panning in streams and rivers! http://www.nwcn.com/statenews/washington/stories/NW_040309LFB-gold-panni...
Yes, I wonder about that, too. I obviously think that an emergency fund is important, but not paying down your credit cards doesn't ensure that they won't lower your limit anyway. Hm.
What? No link to my "where to get free condoms" post? ;)
Mind you, most of the info in there might be out of date at this point.
And yay, Time Magazine!
Like those people with metal detectors in the park, I am so worried that this would be a hobby that would border on obsession for me. But it sounds like so much fun!
Won't keeping a balance on the cards affect your credit rating? It's not a terrible idea, but I'd have to consider all the ramifications.
Hey Linsey this is super awesome! You look cute, too!! I was kind of confused by the Condoms title, but then I read Will's scan, and it made more sense haha.
I've been using Just One Club Card for about a year now, and been very pleased with it. The only things I've not been able to make it take are my library card and my Hancock Fabric card.
There is something about this that I find very unsettling. While I think it's okay to focus on an emergency fund, "let[ting] them wait for their money" is playing with fire.
You have a hefty emergency fund, good for you. But how much of that are you going to spend paying off the accrued interest on your credit card balance after company raised your interest rate? It just doesn't seem very smart or penny-wise.
this might be a good idea. But if you're living beyond your means and your CC balance is growing every month, you should work on THAT problem. I don't want a huge EF and huge debt. Then you need a bigger EF, because part of if will have to go to service the debt if the worst happens and you need to tap it. That seems counterproductive to me.
To clarify my post above...it was directed to the few posters and readers who think teachers have a cushy job, with all this free vacation time. They make it sound like we've won the lottery. And, they won't even take the time to walk in our shoes. Anyways, I am grateful for the article and the many comments here who shed light on the reality. Thanks guys!
Time off doesn't mean that teachers are not working on grading, planning lessons, buying resources, writing curriculum, etc. Please don't be so naive to think that because your kids aren't in school that teachers are not working. Please, get accurate information before you assume things.
Laws nowadays require continuing education for teachers so that they can keep their certification.
In one school district in CA -- so I've been told anyways -- teachers have to buy their own liability insurance.
Have you spent a day on the job with a teacher? It's not all a picnic as some may assume. It's certainly not at all like babysitting.
I have quite a stash built up! But I started years ago when I saw the writing on the wall and gold was $370/oz. Now it ranges between $800-$1,000/oz.
...should be gold, for example? I'm curious because I'd like to make this a goal.
Thanks so much for everyones patience! As you can imagine haveing your site go down is a pretty scary thing. Thanks to Linsey and Wisebread for the wonderful post! The website is now up and fully functional! I hope you enjoy and if you have any questions please don't hesitate to ask!
Again thank you to Linsey and Wise Bread!
i watched this eppy, and breathed a huge sigh of relief. it's what i had been doing anyway. who has funds to throw it all to these cc companies? like suze said, they'll wait for their money. i'm happy to indulge them with that wait. 8 months of savings is hard to get to, but as long as i'm contributing to my account every paycheck, i'm satisfied. it all adds up.
It's really an all around good night, for a good cause, and free. Can't top that.
It still sounds like a highly dangerous proposition, making such a one-sided argument, but the way you put it actually gives it a decent point.
This is the first month I'm not going to be paying my entire credit card balance off fully, and only because my emergency fund has been almost entirely wiped out. It's a scary time but when I need to have cash in my checking account for things like rent and student loans that I can't pay for with my credit card, having that little breathing room on the other side of the credit equation is all that's keeping me from having to borrow money from my relatives, which is the second to last thing I'd want to do (the last thing I'd want to do is borrow money from my friends).
Be assured though that as soon as things level out I'm throwing everything back to killing that CC debt.
Meanwhile, I dunno about an 8-month emergency fund. I'd say 3 months or so is pretty good, at which point you can find a nice balance of savings and debt reduction that's right for you. In fact, with interest rates for savings so low, it might not be all that wise to put money in there instead of debt.
I use dial-up so I'm wondering if the poster or one of the commentors plans on making a howto for those of us unable to watch ?
Nursing homes here locally were poor choices when mom was slowly succumbing to her dementia.
Through the magic of the Internet I found a group of retired U.S. expats in Mexico, including a doctor and his wife, a nurse, both of whom had worked in long-term care.
Mom was placed in a local facility in Guadalajara which had twice the caregiver/resident ratio, for half the cost of any other facility I found here in the U.S.
Our entire extended family was very pleased with the care mom got until her death 6 years later.
Reducing unemployment insurance is not a solution to get people back into the workforce or fix this economy, how about we focus on the other side which is increasing the amount of jobs available?
If there were more jobs out there, fewer people would be unemployed and less money would be taken from unemployment insurance.
Perhaps we should talk more about fixing the cause instead of the effects?