My Next Financial Priority
Now that I’m debt free, my next financial priority is beefing up the e-Fund and learning to maximize investment returns. As I was making adjustments to control frivolous holiday spending, I used MS Money to project my disposable income and required expenses for the month of December. Then I subtracted the estimated cost for the rest of my planned gift list. After running the numbers, I noticed a surplus there too. Hmm…
Then it dawned on me!
Without actually using the term, I realized that I was applying the snowball method to pay off my debt. I fondly remember when I had a car payment of ~$380/month. After the car was paid off in June, I applied the same amount towards my student loans. Now that the student loans are paid off, I have an additional ~$380/month that need a place to call home.
Considering my new financial priorities, I logged into my employer’s personnel site and increased my e-Fund allotment from $250 to $600. I’m only ~$3k away from my revised e-Fund goal of $15k, so this change should get me there no later than early summer. Whoa! Then I’d have to really get serious about investing.
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What a “fabulous” position to be in. You have done a great job. Congratulations!
Where I work, nobody even takes home $600 with or without an e-Fund allotment.
Do you max out your 401K, too? I have my EF, I have my new(ish) car fund, and now I’m working on my Roth. After that, I’m saving up a downpayment for a house, THEN I’m maxing out my 401K, and THEN, finally! I get to tackle taxable accounts…goodness, I have a loooong, looong ways to go. It’s awesome that you are so so close!!!
Work it O-U-T Ma! Work it O-U-T!
great stuff. i realized, after reading about the snowball method, that that’s the road i’m taking, too.
Thanks for the hat tip to Dave Ramsey’s website…I’m learning some ish there as well as on your blog!
And congrats on knocking your debt out of the ballpark! That’s a homerun anyone can appreciate an day.
Lady V
$600 !!! holycrapnoodle, u go gurl
Wow, you go gurl! I need to start saving the lil bit of money I get.
I haven’t been by in a while but I needed some inspiration because I really need to get serious about saving. REALLY SERIOUS. I completed a retirement worksheet recently and if I’m not careful I’m going to be eating catfood out of a can in my old age.