Tuesday, December 13, 2005


Current Conundrum

I like to do my taxes in January because I almost always get a refund. This year I am expecting about $1400 which I am not sure what to do with hence the conundrum. If I put it into savings it decreases the balance I have left to save for my emergency fund quite dramatically which means I can increase my monthly snowball payments. But maybe I should put it all towards the debt snowball? Through a debt calculator I found via Mighty Bargain Hunter, I discovered that I can pay off the credit cards 6 months early and save a bunch of interest by increasing my monthly payment by $100, $1400 is just over a year of extra $100 payments. Hmmmm


Blogger ncnblog said...

I would have a mini emergency fund of between 800 and 1200 dollars, and then use the rest for debt re-payment. That is what I did, and I am almost done. (in fact, when I was really trying to make my original goal, I used all but 100 dollars of my savings... now i have built that back up to 1000)
also, adjust your with-holdings so you are not giving the govt a 1400 dollar loan each year... that's your money, and it should be put to good use! Just think, if you fix your with-holdings, and you use your 1400 dollars, that is 2800 dollars MORE for you to use next year...

7:20 PM  
Blogger kassy said...

I think that is what I'll do, I have 3 savings accounts; Emigrant Direct for long-term, credit union for the cats vet bills, and my regular bank for emergencies that require fast cash access. I already have 400 in the regular so if I put in 600, that will leave 800 for the snowball.

8:16 PM  

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