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Old 10-08-2012, 05:00 PM   #1
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CaylaEP
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What would you do with this extra $ a month?

DBF and I want to get a better hold on our savings and paying off old bills. We were just spending how we wanted and not really caring. I'm not looking for money saving ideas or where to cut, but what to do with our extra money each month. After all monthly bills (rent, cell, student loan, etc) are paid we have about 1300 left over give or take depending on other things that pop up. The "bills" include gas, grocery, and a little extra for eating out, etc (we do envelopes but not Dave Ramsey per say, though it's on my list to look into when I have more free time). DBF has a credit card bill of about $1000, owes sprint about $400, owes the state about $400, and is still paying off his truck and I have a $30,000 student loan that I'm making monthly payments on (it's $288, but I do $300). We do have savings but I want to treat this as if we gave zero in savings at this point bc that money is set aside for a house/other. We want to develop a joint savings and each seperate savings (for big things we both may want/do want) while still trying to pay off debt..so how much would you put away from the 1300$ each month for each of the three savings accounts and what towards paying off bills? I want to do a little bit of both until we develope a good savings and then really pay off debt more. How much should we have saved for an emergency etc?! Some months when one of us works overtime or DBF does side jobs we will have a much larger amount left over to use too. Thanks in advance!

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Old 10-08-2012, 05:28 PM   #2
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Re: What would you do with this extra $ a month?

I would recommend shooting for six to eight months income for an emergency fund. I would count the money you already have. If that's enough, I'd pay down debt. Saving money while retaining det is just a facade, IMO (beyond the emergency fund, that is). While you didn't ask about it specifically, I really hope the joint accounts have "and" between your names. If they have "or", one person can take all the money without any repecussions. I personally wouldn't feel comfortable with an "or" account without a legal binding between me and the other person.
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Old 10-08-2012, 07:21 PM   #3
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Re: What would you do with this extra $ a month?

Are the credit card bill, sprint bill and money to the state overdue? If so, I'd start with those and clear them immediately. If not, I'd pay off the two small $400 bills with the first month and the c-card bill with month # 2. Then I'd move to savings. I would just keep slowly chipping away at the student loan for now, but I wouldn't attack it until you have a separate from your house fund emergency fund. GL!
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Old 10-08-2012, 07:35 PM   #4
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Re: What would you do with this extra $ a month?

Pay off the small debts in the first month or two. Make double payments on the truck and save the rest until it is paid off. I might put $100 each in indiv savings and the rest in joint. If you aren't married, do you know the exact legal ramifications of having joint savings? Who does it *really* belong to? Whose name Is it in?
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