Comments on: A Dollar a Day http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html A less crappy personal finance blog Sat, 20 Mar 2010 06:26:05 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Punch Debt In The Face http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1158 Punch Debt In The Face Wed, 12 Aug 2009 18:46:12 +0000 http://www.punchdebtintheface.com/?p=151#comment-1158 Not a bad idea Mr or Mrs. Anonymous. I may strongly consider something like that :) Not a bad idea Mr or Mrs. Anonymous. I may strongly consider something like that :)

]]> By: Anonymous http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1157 Anonymous Wed, 12 Aug 2009 18:44:59 +0000 http://www.punchdebtintheface.com/?p=151#comment-1157 Since you are talking about a 5 month time period if you were to take 10k of your savings and put all 2k at the loan for 5 more months you are looking at negligible interest savings over the 5 month period to do the 10k now.<br /><br />Why not do the 2k a month and on the 5th month send the other 10k. This would only open you to 5 months of risk rather than 10 while you rebuild your savings. Since you are talking about a 5 month time period if you were to take 10k of your savings and put all 2k at the loan for 5 more months you are looking at negligible interest savings over the 5 month period to do the 10k now.

Why not do the 2k a month and on the 5th month send the other 10k. This would only open you to 5 months of risk rather than 10 while you rebuild your savings.

]]> By: Punch Debt In The Face http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1126 Punch Debt In The Face Mon, 10 Aug 2009 22:23:41 +0000 http://www.punchdebtintheface.com/?p=151#comment-1126 Pretty solid financial advice ladies and gentlemen, I can always count on you to beat financial sense in to me. I think I will refrain from throwing all my savings at the student loan, but I will redirect more of my discretionary income at it to hopefully knock it out in a year. I'm sure I'll be keeping you posted (whether you want to be or not) :) Pretty solid financial advice ladies and gentlemen, I can always count on you to beat financial sense in to me. I think I will refrain from throwing all my savings at the student loan, but I will redirect more of my discretionary income at it to hopefully knock it out in a year. I'm sure I'll be keeping you posted (whether you want to be or not) :)

]]> By: SS4BC http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1125 SS4BC Mon, 10 Aug 2009 18:35:10 +0000 http://www.punchdebtintheface.com/?p=151#comment-1125 I'd do it if I were you, but only because I feel comfortable that I don't need THAT large of an emergency fund.<br /><br />Also, you can add that money you're using to pay for your student loans now to your house fund and it should grow pretty fast since interest will be working in your favor instead of against you.<br /><br />However, you should do whatever you feel comfortable with. If you feel like you need only 6 months of E-fund, then just pay that much down just to stop paying more money in interest than you need to.<br /><br />If I had the option to pay off all of my debt, but the consequence was that I only have 1 month of emergency fund I would do it in a heart beat, no questions asked. I'd do it if I were you, but only because I feel comfortable that I don't need THAT large of an emergency fund.

Also, you can add that money you're using to pay for your student loans now to your house fund and it should grow pretty fast since interest will be working in your favor instead of against you.

However, you should do whatever you feel comfortable with. If you feel like you need only 6 months of E-fund, then just pay that much down just to stop paying more money in interest than you need to.

If I had the option to pay off all of my debt, but the consequence was that I only have 1 month of emergency fund I would do it in a heart beat, no questions asked.

]]> By: DogAteMyFinances http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1124 DogAteMyFinances Mon, 10 Aug 2009 15:28:05 +0000 http://www.punchdebtintheface.com/?p=151#comment-1124 Unless your job is rock solid (unlikely) don't cash out your savings for Sallie. She'll go away soon enough. You need to be prepared if you lose your job, for now.<br /><br />Oh, and love the graphics, hot stuff. Unless your job is rock solid (unlikely) don't cash out your savings for Sallie. She'll go away soon enough. You need to be prepared if you lose your job, for now.

Oh, and love the graphics, hot stuff.

]]> By: calquist http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1123 calquist Mon, 10 Aug 2009 15:27:47 +0000 http://www.punchdebtintheface.com/?p=151#comment-1123 I'm very conservative with my money. I like big emergency funds and I think you should keep at least $15k simply because you can. Judging by your tweets as of lately, it sounds like you might be in the midst of a big purchase. Is that money coming out of the 14k? My vote is for all the discretionary money going to the loan, but keeping the EF at 15K just because you never know what is going to happen and there is no point to potentially give yourself worry about only having 5k and an emergency when you are in a very excellent place with your money :) Your loan is pretty small in terms of student loans that I have seen and it will be gone soon enough. I'm very conservative with my money. I like big emergency funds and I think you should keep at least $15k simply because you can. Judging by your tweets as of lately, it sounds like you might be in the midst of a big purchase. Is that money coming out of the 14k? My vote is for all the discretionary money going to the loan, but keeping the EF at 15K just because you never know what is going to happen and there is no point to potentially give yourself worry about only having 5k and an emergency when you are in a very excellent place with your money :) Your loan is pretty small in terms of student loans that I have seen and it will be gone soon enough.

]]> By: DogAteMyFinances http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1122 DogAteMyFinances Mon, 10 Aug 2009 15:25:53 +0000 http://www.punchdebtintheface.com/?p=151#comment-1122 Back when ING was paying over 5% and my student loans were locked in at 4.5%, it was a tough decision. I'm glad that now debt repayment is finally the "smart" choice.<br /><br />To me, the same number kept me paying off Sallie. I calculated my interest per day, and blew it up at the top of the spreadsheet. I remember it was easier and easier to make it smaller as more paid off. Back when ING was paying over 5% and my student loans were locked in at 4.5%, it was a tough decision. I'm glad that now debt repayment is finally the "smart" choice.

To me, the same number kept me paying off Sallie. I calculated my interest per day, and blew it up at the top of the spreadsheet. I remember it was easier and easier to make it smaller as more paid off.

]]> By: myprettypennies http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1121 myprettypennies Mon, 10 Aug 2009 11:33:52 +0000 http://www.punchdebtintheface.com/?p=151#comment-1121 Where do you have this nice chunk of change? Is it just sitting in a .25% savings account or in a higher money market? Stocks? Regardless, your debt interest is probably higher. Personally I am going for the debt-first approach with about $3,000 in savings to sustain me for emergencies. Next I want to fully fund my E-fund, and then I'll start thinking about a house. That's my approach.<br /><br />If I were you, I'd probably put some of that money towards debt, but I'm not sure if I'd put all of the $10K for right now since it is an emotional "detachment" after having all of that money within your reach. Perhaps do $5,000 for two months just so it's not a quick "see ya" all of a sudden. Seeing that amount in your account one day and not the next can be kind of scary. But leave yourself at least $4,000 (if not $6K) for that emergency fund.<br /><br />As for the discretionary $2,000 you are able to save/pay (impressive, I might add!), you may want to give yourself a set limit for savings, set limit for debt and any extra money that you earn give it to your debt. The snowball effect can really add up and motivate you to continue dumping that debt.<br /><br />Sorry for writing a book! Let us know what you decide. Where do you have this nice chunk of change? Is it just sitting in a .25% savings account or in a higher money market? Stocks? Regardless, your debt interest is probably higher. Personally I am going for the debt-first approach with about $3,000 in savings to sustain me for emergencies. Next I want to fully fund my E-fund, and then I'll start thinking about a house. That's my approach.

If I were you, I'd probably put some of that money towards debt, but I'm not sure if I'd put all of the $10K for right now since it is an emotional "detachment" after having all of that money within your reach. Perhaps do $5,000 for two months just so it's not a quick "see ya" all of a sudden. Seeing that amount in your account one day and not the next can be kind of scary. But leave yourself at least $4,000 (if not $6K) for that emergency fund.

As for the discretionary $2,000 you are able to save/pay (impressive, I might add!), you may want to give yourself a set limit for savings, set limit for debt and any extra money that you earn give it to your debt. The snowball effect can really add up and motivate you to continue dumping that debt.

Sorry for writing a book! Let us know what you decide.

]]> By: Leigh in Tennessee http://www.punchdebtintheface.com/2009/08/you-have-helped-me-save-dollar-day.html#comment-1120 Leigh in Tennessee Mon, 10 Aug 2009 11:18:54 +0000 http://www.punchdebtintheface.com/?p=151#comment-1120 Way to go! My student loan balance is right around $55K at 7.2% interest and I'm just within the last three months started really throwning money at it. With savings rates as low as they are right now, I can't justify puttin the money in the bank when I'm in effect earning 7.2 interest by paying loans off early.<br /><br />I would put $10K toward the loan and leave yourself with $4K in savings. That will basically knock out half your loan. You should be able to pay off the remaining $10K in the next year and then you can fully refund your EF and start saving for a house downpayment in earnest. Way to go! My student loan balance is right around $55K at 7.2% interest and I'm just within the last three months started really throwning money at it. With savings rates as low as they are right now, I can't justify puttin the money in the bank when I'm in effect earning 7.2 interest by paying loans off early.

I would put $10K toward the loan and leave yourself with $4K in savings. That will basically knock out half your loan. You should be able to pay off the remaining $10K in the next year and then you can fully refund your EF and start saving for a house downpayment in earnest.

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