Author Topic: Reforming anti-mustachian/Debt pay down or cash first?  (Read 1787 times)

Snoozedout

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Reforming anti-mustachian/Debt pay down or cash first?
« on: July 07, 2013, 03:54:06 PM »
Hi all, I spent too much time and money not being smart about finances, plain and simple....I bought stuff in the hopes it would make me happier or Id get enjoyment out of it, and you know, none of it changed my life, and it weighed me down.  This won't surprise mustachians, of course..... Ive spent 2013 coming around to really understand all of this, and i stumbled upon the MMM stuff a few months ago.  Without going into all the details, Over the last year or two,  I racked up consumer debt, about 12k total.  There is nothing particularly fancy that i recall buying, no emergency bill or repair that I had to charge to it.  Sad, right?  That's how it was, and so for the last few months, I've been working my way through it, got it down to about 10k.  Obviously, I want to get this monkey off of my back as quickly as possible, but things keep coming up....huge car service and repair bill I didn't plan for, vet bills, etc.  the good news is I haven't let those add to my debt, but the result is that while paying down this debt I have zero cash saved up on hand. i had a goal of both having a fair amount of cash cushion AND paying down my debt aggressively, but I cant seem to do both since everything cashwise gets eaten up by these random extra bills.   I guess MMM would say obviously the cash stash is second to debt at 13 percent interest, but I can anticipate needing at least few thousand dollars on hand for medical and other necessary bills shortly.....strategies?  Is one more important than the other for someone like me? I can't take an extra job at this stage....so my cash flow is what it is. If you were aggressively paying debt down, did you also save at the same time?  Thanks. 

Inquizator

  • 5 O'Clock Shadow
  • *
  • Posts: 32
  • Age: 32
  • Location: Houston, TX
Re: Reforming anti-mustachian/Debt pay down or cash first?
« Reply #1 on: July 07, 2013, 04:25:32 PM »
I think this is a situation where Dave Ramsey's advice is quite applicable: He suggests having a $1,000 emergency fund and then attacking the debt. If anything draws down that emergency fund, then build it back to $1,000 before you continue paying down the debt.

fiskeb

  • 5 O'Clock Shadow
  • *
  • Posts: 15
Re: Reforming anti-mustachian/Debt pay down or cash first?
« Reply #2 on: July 07, 2013, 05:24:47 PM »
Yep.  Read "The Total Money Makeover", listen to Dave's show on "I Heart Radio" and get pissed off at yourself.  You need some hope and some direction.  The other part is living frugal.  MMM can help with that.

Work your ass off, get out of debt, stop eating out for a while, stop putting money in things that go down in value, and everything changes.

There is nothing cooler than pulling up next to a Mercedes, feeling sorry for the broke bastard driving it, and realizing "I could write a check for one of those, but chose not to"....   

You know you're on the right track when you start to invest more per month than your car is worth.