My intro

[daverph]

Well, my worry here is that I have a lot of CC debt, more than I would like to admit for my tolerance at least. This will be our number one priority along with saving for a home. Once she starts working, which she should hear about a job in the next week, that will help out a lot. I want to take the free money but hate the thought of having the debt lingering. Thanks.

Dave

 

[brewer12345]

Well, my worry here is that I have a lot of CC debt, more than I would like to admit for my tolerance at least. This will be our number one priority along with saving for a home. Once she starts working, which she should hear about a job in the next week, that will help out a lot. I want to take the free money but hate the thought of having the debt lingering. Thanks.

Dave

Do your credit cards charge you over 40% interest? If not, then taking the free money is a good deal. I would put in for 5% 401k and throw the rest of the money at the CC demon.

 

[sgeeeee]

Well, it rhymes with "wit"...

 

[virginia]

Me personally, I would start working on the emergency cushion while paying off the debt - not a huge cushion, but one that will cover emergencies. Once I had the minimum that I was comfortable with, I'd work on the debt and the 401k at the same time. The reason that I'd do it this way, is so that I'd have something to fall back on, and not have to add back to the debt - and this would help you achieve both goals of debt payoff and saving.
My experience is that it's hard to work towards several goals at once when it comes to a limited amount of money, but it's much easier to do that when you have something to fall back on.

 

[scrubradio]

I am 35, I decided to pay myself first (401k up to match), then pay my
emergency fund $30 week (I gave it a $250 starting kickoff), then pay
down high interest debt with what was left over.

So far I have $300 in emergency fund, paid off one credit card and have
sent in more than minumums on others. Using this method, I will be debt
free in about 6 months.

To achieve my goals faster, I chose to purchase an inexpensive house
that is well below my means. As a matter of fact the offer I made was
accepted today! The payments on the home will be 10.5% of my net
income. This will allow for some serious investing for FIRE. Upon closing
the sale I will be uping the 401k to max.

I'm glad that I chose to put money in the emergency fund as I have also
incurred my first expense. Someone took it upon themselves to steal
my lawn mower the other day and now I need a new one.

Thanks for the help guys n gals!