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Mathmatically Insane

November 1st, 2007 at 03:04 pm

So, Im trying to work out the difference between paying down the debt, and saving for the emergency fund.

At this specific point, we have about $11,000 credit card debt. Which sucks, and we're working hard on it.

We also have about $400 in our EF right now - we had closer to $600, but the health insurance hasnt reimbursed us for our flight out to Anchorage yet.

When your kid is running a 105 fever under 6 months old, you tend to not be as concerned as you should be about tracking receipts for reimbursement purposes.

So, obviously, our debt far outweighs what we got in the bank.

And we're planning on moving at the end of this year. We're not sure where yet, or if we're staying in Alaska or moving back to the lower 48.

We know we need to save money to move - and that if we move back to the lower 48, its going to cost quite a bit.

We need to save for the move.

We need to pay down our debt while we're making pretty good money.

How do we split it?

60/40, debt focused? 50/50?

I have no idea!

Im planning on sitting down this weekend and making up a list of the places we would like to move. Then, we've gotta think about moving costs, living costs, buying new things...

*sigh*

Any advice on moving and saving? Or on figuring out how to save FOR moving?

4 Responses to “Mathmatically Insane”

  1. boomeyers Says:

    Hmmm, I would think 60/40 would be good. That way you are paying down the debt and still saving. Good thing you had the EF to pay the $200 you needed! Use the reimbursement to replace the EF. Can you sell most of your stuff before you move and reduce the cost of the move that way?

  2. Broken Arrow Says:

    Whatever it is, since you have a new child to tend to, I would lean towards savings over the credit card....

  3. Amber Says:

    I would take Dave Ramsey's stance and save the $1000 first for EF and then tackle the debt smallest to largest...good luck

  4. Caoineag Says:

    My advice for moving at least would be, get rid of as much of your stuff as possible. Most people don't realize that its much cheaper to get used or cheap furniture in a new location than it is to move it. Also, selling some the stuff, even for cheap can help with the cost of moving.

    As to saving versus paying off, I would probably get to the $1000 mark and then pay off the debt as much as possible. That way you have some cash for any emergencies that might arise during the trip.

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