Knocking down debt

ScenicMaine · ‎09-21-2018

So, after reading a few other interesting topics this week, I thought this topic might be incentive for reaching financial goals, opinions, etc.

I'll begin .. on my goad/wish list:

- pay off both CCs

- just paid off my car 4 mos. early this month & house payed off a few years ago.

- continue to add to our bank savings as well as 401K. The bank savings is what I consider small/modest. We still feel the need to add to it -( just never know of any health challenges along the way but hopefully some of it can be used for "fun.")

Speaking of small or modest savings accounts, what do you consider the $$ range to be?

sissel · ‎08-13-2010

It's hard to say how much you should have in savings, depends on your lifestyle, are you married, do you have children, own a home? Always plan to save as much as you can, owning a home you never know what is going to break, kids are expensive. Dave Ramsey gives out great advice on this subject; He wrote several books but maybe google him & you will get an idea of what his saving ways are. My DD was getting a little bad with credit cards had to really talk to her but it took a few years now she pays them off every month. It's a wonderful feeling to be debt free, DD now understands. .

ScenicMaine · ‎09-21-2018

@sissel

Thank you for your input.

I perhaps didn't explain right .. I mostly was curious what others considered a comfort zone for their lifestyle in their savings account. Just something to be thought about.

phoenixbrd · ‎03-27-2010

@sissel Agree. This is highly individual information and depends on your unique situation.

sandy53 · ‎03-12-2010

When we were working I wanted 3-6 months of living expenses in liquid assets. Now that we are retired, we don't have to worry about losing our jobs, but I still want a healthy emergency fund in liquid assets. This year we are looking at more dental implants and probably hearing aids for my DH. It's good to know there is money in the bank for those kinds of expenses.

SilleeMee · ‎05-22-2016

I try to go by the "50/30/20 Rule". But I think realistically it's more like 50/40/10 and then sometimes that just gets tossed out the window altogether. Trying to keep things within a manageable arrangement is flexible for me as long as I keep it 'manageable'.

The 50/30/20 rule...from Elizabeth Warren's book (2006):

"All Your Worth: The Ultimate Lifetime Money Plan"

Annabellethecat66 · ‎03-12-2010

OMG! I'm going through this with my youngest daughter. I try to make her understand unless she gets down the credit card bills she's just paying interest.

Hopefully (with my help) she'll get a handle on this stuff. I watched a show and it showed how these credit card companies come to colleges and push young people into signing up for them. Then before they know it they are .....(well I won't use the phrase I use but it involves the bottom) in debt.

She isn't a kid anymore. Her generation is obsessed with having a 'good credit rating'. I keep telling her she wouldn't need to even think about it if she didn't have any debt.

Myself and a few of my friends my age (I'm 72) are totally debt free. We all own our homes, own our cars, no credit card debt and so on. My oldest daughter is the same way, no debt at all and she and her husband have 4 children and she's a stay at home mom.

Everyone could live similarly if they'd just learn to live within their means. That isn't a phrase you hear anymore....LIVE WITHIN YOUR MEANS.

MarieIG · ‎03-10-2010

This very much depends on personal circumstances.

If working, enough to cover eight months of expenses if laid off.

If retired, and living off a stock portfolio, two years to cover downturns.

Depending upon expenses, certainly enough to cover a car or new roof, if needed or in the plan.

Someone, for example with a Federal pension, enough to cover all their needs, would need less that the retire living off their stock portfolio.

Do the math.

Laura14 · ‎06-09-2014

I put a healthy amount into my 401k (not looking at present but I do keep an eye on it) and then more than half my paycheck goes into savings automatically and the remaining smaller amount into checking.

I transfer a little from savings as needed if I have a larger expense to pay like semi annual insurance premiums.

I also pay off my credit cards in full every month. No debt for me.

Big Joanie · ‎01-02-2015

@Annabellethecat66 wrote:
OMG! I'm going through this with my youngest daughter. I try to make her understand unless she gets down the credit card bills she's just paying interest.

Hopefully (with my help) she'll get a handle on this stuff. I watched a show and it showed how these credit card companies come to colleges and push young people into signing up for them. Then before they know it they are .....(well I won't use the phrase I use but it involves the bottom) in debt.

She isn't a kid anymore. Her generation is obsessed with having a 'good credit rating'. I keep telling her she wouldn't need to even think about it if she didn't have any debt.

Myself and a few of my friends my age (I'm 72) are totally debt free. We all own our homes, own our cars, no credit card debt and so on. My oldest daughter is the same way, no debt at all and she and her husband have 4 children and she's a stay at home mom.

Everyone could live similarly if they'd just learn to live within their means. That isn't a phrase you hear anymore....LIVE WITHIN YOUR MEANS.

if only we could get the kids to understand this .....