Emergency Fund Established: Thank You Uncle Sam
A while back I discussed how my raise coupled with the federal tax rebate would join together in fully funding our emergency fund. Well, today I well be sending over a $4200.00 deposit to our money market fund. This will bring that account to $5000, which is the goal for our backup fund. With that is place, we will still be send $100 automatically there per month. It gets a pretty decent interest rate as compared to our other accounts and we can set those extra dollars aside of any family trips that come up.
On a related note, this week we also began to implement our plan on paying down the auto loan early. I started small, extra $55, because we also finished paying off some remaining credit card debt. As of today, we not longer have any outstanding credit card balances. From here on out we will be paying the cards off monthly. I know that the debt is still existent in the form of a home equity loan, but at least the rate is much lower and we can meet the existing payments, while not adding massive amounts to the balance.
It was only 2 months ago that we were adding $1200 monthly on our total debt. Now, we are starting to see that total debt decline. This is a big relief for us and sees us on the right path to financial recovery.
Filed under: Budget, Finance and Investing
