Bichon Frise wrote:I would NOT reduce my emergency savings, if that is what you are asking. A $1000 may get you out of a bind, but probably won't get you out of 2 in a row. We all sleep differently, and I carry more cash than most people make in a year (probably more than they make in 2 years). I could not sleep with a $1000 being my fall back. YMMV.
eliminating the car debt seems reasonable through throwing excess cash at it. It is a long and uphill battle, so don't expect it to be done by the end of the year. Also, your decisions have been made, and there are no mulligans in this case. So, you should look at YOUR (meaning you and your wife's) goals and figure out what makes sense. Perhaps, eliminating the debt ASAP suits you best, perhaps throwing an $100/mo at each loan and maxing out your 401k makes sense. Je ne sais pas...that is for you to decide.
I would not pay anymore than you have to for the house. Again, you get to decide...
Thanks for the reply Bichon. My wife and I are still working it out, but we are making progress.
This month has been interesting to say the least. I've been managing my finances very well. I've been carrying cash which has definitely reduced the amount that I spend per month. We only spend about $40 at the grocery store per week now and we don't spend money to go out and eat anywhere. In addition I got my bonus this month and I put $2358.50 towards the car payment. 858.50 is two monthly payments plus 1500.00 which I asked to be put toward principal only.
new balance will be $18,117.06. Reading the DR book has been helpful as any extra monies I get will go to the car payment. I get another check midway through the month so i'll be sending money from that to the car as well. I'm waiting on this life insurance check for anywhere between $1600 - $2000 too.
End of year 10K here I come.