Okay, so I am behind the times because this news is approximately a year old, but it is new to me. Have you heard this? Financial guru, Suze Orman, advises in our current financial climate to not pay down your debt. To only pay the minimum monthly amount and instead divert the rest to building your emergency fund. This emergency fund, which is commonly advised to be enough to cover 3 to 6 months worth of expenses, is now recommended to be enough for 8 months of expenses.
I shared before that we never carried any credit card debt, but that has changed because of our recent FET (frozen embryo transfer). We used to have about 5 months worth of rainy day savings, but most of that went into our down payment for our new house. So we find ourselves in uncharted territory. We have almost no savings (well, not counting retirement stuff) AND we now have credit card debt! Woohoo! Oh, wait, nevermind.
This advice from Suze Orman throws me for a total loop. It goes against everything I've ever learned and kills me to think of carrying a balance on our credit card in order to start padding our emergency fund again. What do you think? Have you heard this? Are you still paying off debt or are you building your emergency fund?
17 years ago
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1 comment:
hi Tina-love reading your blog-wish i got to connect w/ you more face to face. we are also in a situation where we have used up the bulk of our savings for a house addition.
we are following the Dave Ramsey plan supercharged w/ pretty much little discretionary spending until our emergency fund is built back up- and praying our minivan will make it at least another 2 years!
i'm sure you've heard of Dave Ramsey-i think he offers a good perspective on finances as a believer :)
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