Hello MMM community,
Been a long time reader on the sidelines, and decided to jump in today and hopefully get some advice on my current financial situation.
Since 2004, I've had a side hustle e-commerce clothing company that saw year-over-year growth with very little concentrated effort on my part. Since the launch of that company (coincided with the year I graduated college), I made my way through the marketing world. In 2014, I reached the six-figure income level and found myself in a pretty cozy life. I ate like a king, vacationed like an Instagram celebrity, and burned through $400/mo car leases. Now, to my accidental credit, I did all of this without building any debt. I just didn't save a thing (besides a minimally contributed 401K).
Then, in May 2015, with my side-hustle clothing company reaching six-figures in revenue, I decided that I would work one more year before taking on the entrepreneur life full-time.
Fast forward to June 2016, with one-year of expenses saved up in the bank (got a bit smarter during this year and moved my savings from 1% with Ally to Wealthfront), I quit the corporate world and became a full-time business owner.
Thirteen months later, I find myself in need of some advice on what to do with my savings vs. my debt. In other words, do I keep my savings in Wealthfront or pay off my (zero interest) credit card debt. Here's where I'm at:
I'm pulling a modest income of $2,000/mo from the business (taking less some months)
Fixed monthly expense total out to about $1800/mo.
Wealthfront savings: $17,000
Wealthfront IRA: $28,000
My credit card debt has gone from ZERO to $13,000 (all in zero interest credit cards w/ the promo APR offer ending in April 2018).
- I basically only use cash for rent and car payment. Everything else goes on CC
2011 Jeep Wrangler Sport (a Jeep, I knowwww) with $5800 left to pay-off (KBB value is $17,000).
The MMM in me really wants to take the savings and pay off all credit card debt, and then cut up those credit cards. I realize that they're creating an illusion of comfort in my financial life. But, then again, my debt is at 0% for the next 8 months and my money in Wealthfront is earning a very healthy return (but what will the MMM predicted recession do to that money?).
Or do I pay off the Jeep? Or do I sell it and use the profit?
I appreciate any insight or advice on this scenario.
