2022 Challenge Contentment

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HappyDaze
Posts: 4186
Joined: Tue Oct 15, 2019 11:11 am

Re: 2022 Challenge Contentment

Post by HappyDaze »

Going out later today to "free shop" --

Even though my birthday isn't until next week, I've decided that later today I will go around and collect my "birthday freebies and discounts". I have a coupon for a free medium drink at Dunkin Donuts. I have a coupon or $5 off any purchase at Value Home Center. I have a $10 birthday credit (off $50) at Tractor Supply - plus other points on my account at Tractor Supply that I can apply to my purchase.

I can always use pet food so Tractor Supply is a no-brainer. BUT - I'm going to see if I can purchase a gift card and use my points on that - I always give DS and his wife a TS gift card for Christmas.

don't need anything from Value Home Center but I know I'll find something I can use - they have cleaning supplies and some household items and snacks - in addition to all the hardware, painting supplies, etc. I plan to spend as close to the $5 as possible so my item(s) will be practically free. I'm only going to get my free drink at Dunkin Donuts - so - free!

I also plan to hit the grocery store and cash in about $4 worth of returnable cans and bottles that I took out of DD and company's trash last night. I will NEVER be able to wrap my head around throwing money into the garbage. I will find something to buy that comes out to be free or nearly free after cashing in my ticket for the returnables.
"All his life he tried to be a good person. Many times, however, he failed. After all, he was only human. He wasn't a dog."

Charles M. Schultz
HappyDaze
Posts: 4186
Joined: Tue Oct 15, 2019 11:11 am

Re: 2022 Challenge Contentment

Post by HappyDaze »

Looking for opinions - or your answer to "what would you do".

Due to being very aggressive with paying off debt for the past few years, I don't have a lot of money saved - about $2,200. Now I am debt free except for my house and car and able to start saving more.

I know it's important to build the savings - they say a minimum of 3 to 6 months of living expenses (plus this is my emergency fund too - I don't want a bunch of different accounts) and I am far from that. It is also important to me to get rid of the car debt as fast as possible and I've been paying extra every month. (the house payment doesn't bother me - I plan to sell when I retire and move into smaller, less expensive housing).

So which would you prioritize and why - paying off the car or building up the savings? I mean, I can do both, but which would you be more aggressive with? I feel like there are a lot of factors I'm not thinking about that you all will. My job is secure - but then I think about "what if" - and if I didn't have that job, it would be better to have a bigger savings account. Then again, I can not stand to have a car payment - just can't stand it...So many what ifs...

I already contribute as much as I"m going to to my retirement accounts (my financial advisor isn't worried even with the market down 20% and says it's good to buy low and sell high so I shouldn't panic and move money or decrease contributions - but maybe he is getting paid to tell me he's not worried).

I know nobody here is a professional financial advisor (at least I don't think so, lol) - but I asked, so please give me your thoughts and opinions. Thank you!
"All his life he tried to be a good person. Many times, however, he failed. After all, he was only human. He wasn't a dog."

Charles M. Schultz
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Jackielou
Posts: 13425
Joined: Tue Aug 25, 2015 7:51 pm

Re: 2022 Challenge Contentment

Post by Jackielou »

I hate payments so I would try and get the car paid off as soon as possible.
Jackie
http://inthelandofthelivingskiesii.blogspot.ca/
floridacatlover
Posts: 8057
Joined: Fri Aug 28, 2015 7:21 am

Re: 2022 Challenge Contentment

Post by floridacatlover »

HappyDaze wrote: Fri Oct 21, 2022 9:44 am Looking for opinions - or your answer to "what would you do".

Due to being very aggressive with paying off debt for the past few years, I don't have a lot of money saved - about $2,200. Now I am debt free except for my house and car and able to start saving more.

I know it's important to build the savings - they say a minimum of 3 to 6 months of living expenses (plus this is my emergency fund too - I don't want a bunch of different accounts) and I am far from that. It is also important to me to get rid of the car debt as fast as possible and I've been paying extra every month. (the house payment doesn't bother me - I plan to sell when I retire and move into smaller, less expensive housing).

So which would you prioritize and why - paying off the car or building up the savings? I mean, I can do both, but which would you be more aggressive with? I feel like there are a lot of factors I'm not thinking about that you all will. My job is secure - but then I think about "what if" - and if I didn't have that job, it would be better to have a bigger savings account. Then again, I can not stand to have a car payment - just can't stand it...So many what ifs...

I already contribute as much as I"m going to to my retirement accounts (my financial advisor isn't worried even with the market down 20% and says it's good to buy low and sell high so I shouldn't panic and move money or decrease contributions - but maybe he is getting paid to tell me he's not worried).

I know nobody here is a professional financial advisor (at least I don't think so, lol) - but I asked, so please give me your thoughts and opinions. Thank you!
Two questions. What is the interest rate on your car loan? What is the term (number of years)? I’m guessing that your interest rate is quite low because I think you bought before rates started going up a lot but I don’t know what car loan rates run these days.

I have always tried to pay off car loans as soon as possible, but with a recession possibly looming and even though your job is secure, my gut feeling is to split any extra money evenly until you get an emergency fund of about $5,000. You don’t want to have to use credit cards in an emergency. Just an idea.
HappyDaze
Posts: 4186
Joined: Tue Oct 15, 2019 11:11 am

Re: 2022 Challenge Contentment

Post by HappyDaze »

Floridacat, my interest rate (through my credit union) is 3.24%. I went with a 6 year loan (to give myself some wiggle room in case something hit the fan) with every intention of paying it off in 3 years. I could have gotten a lower interest rate with a shorter term but really wanted that "buffer" - for example, what if I have to take a lower paying job or have a big home repair or something?

As Jackie said, I also detest payments of any kind - but your logic makes complete sense. Thanks for your input!

I am pretty bummed about not being able to work a second job anymore but with arthritis in my back and my knee being less than 100% recovered, and having asthma, and any second jobs that would work for my schedule (mostly merchandising gigs) being heavy on physical labor, my doctor is set against it.

While my dog sitting gig brought in about $3K a year, I do not miss it - it was a lot. I need to take my good laptop in and get the password reset - then I'll be able to do more writing assignments again - that is about the most lucrative thing I can do from the comfort of home.
"All his life he tried to be a good person. Many times, however, he failed. After all, he was only human. He wasn't a dog."

Charles M. Schultz
floridacatlover
Posts: 8057
Joined: Fri Aug 28, 2015 7:21 am

Re: 2022 Challenge Contentment

Post by floridacatlover »

Sheila, Frugal Queen in France has her YouTube video this week on the topic Pay Off Debt or Save? How to Decide. She leans heavily on paying off the debt first. She kind of goes off tangent towards the end IMO but I think it’s a useful video.
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