The Emergency Fund Budget
In fighting debt, one thing you should always do is establish an emergency fund.
Of course, in my venture, I’ve got a mixed response:
- I’ve got a built up (and building) 401k retirement account.
- I’ve got an emergency fund (albeit, a small one).
- I’m two months ahead on my mortgage payments.
- I’ve paid ahead on bills!
- I’ve got debt!
This is kind of a “no-no” - why wouldn’t it be great to be ahead of some bills, especially my mortgage?
It’s showing that I’ve lost track of my finances!
I’m overpaying when that money could be better cycled into paying down debt! To fight this, I plan on taking some of my emergency fund, my extra cash from my mortgage gap, and my wife’s income (all of it!) and paying down debt. Basically, my excess influx of cash goes - debt/mortgage principal. Back and forth. Pay down the big one and hammer away at the rest.
One small step at a time, but as I get things in order I’m slowly moving back in track.
posted in budget, emergency fund | 0 Comments
