Monday, June 15, 2009

Re: Comment from Rosie (Part 2)

"yeah... I'm wordy! =) It seems like you really are doing your best with the hand you've been dealt. Paying off the amount of debt that you already have is really amazing... just keep on keepin' on! I hear you on the order of events too... we have a small emergency fund and once we have our car paid off will be debt free, at which point we're going to fully fund a 6-8 month emergency fund, then save for a house.

I would still suggest that you put away at least some money (Dave's Baby Step #1: $1000 Emergency fund) so that if something comes up you don't have to put it on your credit card and perpetuate the debt cycle.

As far as renters goes, check the company that you have your auto insurance with... we have all of our policies with one company (State Farm) and we get a discount on our auto policy for having more than one insurance policy with them.

I hear you on the hassle getting kids out of the car! I wouldn't do it either! =)

By the way, I LOVE your idea of putting the change in a savings account for your kids. What a GREAT way to save for their futures! Another way you might look into is Upromise... you can load "coupons" onto your store loyalty cards that, instead of deducting an amount from your total payment at the store, deposits the amount into a savings account, which you can transfer to a 529 if you want. I haven't done it yet, but keep meaning to."

You can find Rosie blog here.

Again, thank you for your comment. It is great to actually have a "conversation" with someone, instead of just leaving random comments. Haha.

I will definitely talk with Zach about starting an emergency fund. Right now we have open credits cards, with little or no balance, that we have in case of an emergency. (It is good for your credit to have available credit from a credit card, etc....it will increase your credit score at a faster rate than no credit or debt. I have read (Suze Orman) that 1/3 of your credit score is based on the amount of debt vs. available credit.) But, I do see your point that our method could just put us further in debt. Ugh...my goal is definitely getting rid of that vehicle payment. Once we do, we will have a TON of money to put toward our other debt and start an emergency fund.

I have never heard of UPromise, but it sounds like a good idea. Something I will have to look into. We currently have my son in a high interest saving account, until we get $1000. At that time we will more than likely place the amount into a long term CD, or other safe investment opportunity.

Thanks again for the comment. :o)

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