If I save approximately 20% of my income per month with a 7 or 8% return, I could be a millionaire by the time I’m 66.
That means I need to save about $1000 a month. That’s a lot of money, but I’ve been doing that to build up my Save-O-Meter. I’m still floating some credit card debt so once the SOM is full, I need to figure out what to do.
This is where fear must be quelled by rational comparisons on interest rates/rates of return. That sounds like homework. I hate homework. (Stand back LAMoneyGuy! Today I am grouchy.)
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Question? Are your credit cards open and in good standing?
If so, why are you building up the savings instead of paying down the debt?
Wouldn’t you be saving more money by paying off the credit cards? They could be your emergency fund, until the point that they are paid off and your savings is pumped.
I read your grouchy…sorry if my question gets you riled. I’m just curious of your selection.
I could be saving interest by paying off credit cards, but I have never had a basket of cash like this. In a crunch, I’d rather resort to cash first, then go to credit cards. It’s a treasury management/cash flow issue. One day I’ll explain it all better.
FWIW, I make a healthy payment to my credit cards each month and the balance was steadily falling (until these dang out of town weddings this summer). I’m very close to finishing up this goal so I have to decide whether or not to keep on saving or pay off the credit cards completely next.
No offense by the question at all. I once wrote a ranty-pants comment when I was in a GOOD mood, hence the joke with LAMG.
This is too freaking funny. I was reading this post, with my mouse finger getting itchy to click “comments” when I read, “(Stand back LAMoneyGuy!)” hahaha!
Weird. You already know me that well. Well, if it’s any consolation, I still have about 3k on my auto loan. Did the 0% BTs for most of it. Can’t get myself to make that last w/d from savings to be done with it.
LAMG: Dude, we are a community.
The difference though is I’m not paying 0% BT on some of that debt. Most of it is, but some of it is at regular credit card rates.
I am doing exactly the same as you. I have some decent amount of credit cards debt to be clear. But I still continue to save certain amount of money every months. However I do pay for the credit card bill every months.
I figure out if I settle the credit card first without saving. I will still have never ending credit cards debt to be settle every month. This may be cause by some unexpected expenses or probaly when I know that my credit card debt has been clear, I will tend to spend more.