@Petchioski In order to save $1000 emergency fund, you will need to look at your expenses and determine what money can be used to fund an emergency fund.
For instance - if you are eating out that money could be set aside in your emergency fund. Make ONLY minimum payments on your debt, funnel all other money into the emergency fund.
What can you sell to make extra money? Some of my clients sell plasma twice a week. Others change their cell phone plan to save money and fund this emergency fund. Pick up an extra part-time job to bring in extra money. Are you crafty or can you offer a service to earn add'l money?
Those are just a few possibilities to fund this.
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@mk617 if you are making money in the (stock) market, when you access this money to pay down debt this will cause a tax liability, probably. Which means you will be paying tax on this money (again) and to pay down debt this way is not optimal. I would advise leaving your invested money alone and not invest anymore (if you are) and use it instead to pay off debt.
It is preferable to increase income or cut expenses in order to pay off debt.
I know how you feel...I am pretty much bin the same boat. However if you can deposit $20 a week straight from you paycheck into a Christmas club account you will have $1040 after a full 52 weeks of deposits. I do this now and never miss the money for my other bills. I get this given back to me in October, take $300 out to give to my grown kids for Christmas, and redeposit the rest back into the club account so I cannot touch it. After just 2 years of this I have $1400 saved.
As my name implies; you may have missed the boat depending on your actual age. Many people don't properly prepare for retirement prior to making the decision to retire. The first thing to review are your spending habits. I find most people have not done a thorough job of this. Too much indiscretion in spending on non essentials can become detrimental to your goals. Some of the time it means going back into the work force, like it or not. You've indicated a lack of concern for your future by your actions throughout your life and now seek to fix it without making changes. 85% (statistically) of the people living in this country (USA) are making the same mistake you've made. You also indicate your debt is to others, (family, friends?) whom have worked hard to prepare. You need to consider getting gainful employment and paying with your own hard earned money. Traveling across this great nation I see first hand many your age, and older, who are still contributing to the betterment of their communities through their work. Even if you choose something part time to help you build your emergency fund and pay off the debt you would be making progress toward a self sustaining way of life. CUT UP THE CREDIT CARDS. Nothing more to be said on that subject. You stated "...we wish to save for some pleasurable things...". You already did the pleasurable things, Alison. Its time to 'cull the herd' so to speak. The not so pleasurable things will be knocking on your door and that's what your focus should've been on. Your "contract" is only as good, only as long, as your next breath. I pray for your good health.
The emergency fund is just that. Build it at your pace. 10% is a guide to Savings and should be the top priority. Always pay yourself first because nobody will ever take as good care of you as you will. After that comes debt. If you have multiple accounts of debt you should try to consolidate for 0% interest but don’t keep creating more debt when you achieve it. By consolidating you may lower your total payout. CUT UP THE CREDIT CARDS! Keep one for serious emergencies until you have your emergency fund which should have enough money to cover 6 months of expenses. Remember prioritize, focus, commitment. This will get you there.
@Melagin01 A money market account is like a checking account that earns a little bit of interest. It is typically associated with an investment account that has mutual funds, for instance. It is considered 'liquid cash' and readily available for use. Any brokerage firm has one - Charles Schwab, Vanguard, Fidelity, Merrill Lynch, etc.
@dstrong616 Yes - this can be tricky when hours are cut and you have some choices to make. If you are not already doing so, cut your expenses. This would mean no dining out for instance. Check how much you are spending on groceries. There is A LOT of control in a grocery budget. Conversely, can you pick up a second part-time job? Bring in add'l income. Here @ TT/Intuit we are offered a lot of OT. That would bring in more income for sure and probably more than a second part-time job. In the end, you really have to have a strong 'why'. How important of a priority is it for you to save 10% each paycheck/month? Remember this and klet it drive your behavior choices on how you are spending/saving money. It just might keep you from grabbing a $5 Little Caesars pizza, Subway sandwich, or S*bucks latte.
Being a single mom for years, it was always difficult to afford childcare, in order to go out and get a second job. I work a full time job and have always paid off debt at tax time, but I’ve always had a hard time saving throughout the year. I recently started donating plasma, which in turn earns me an average of $4,500 a year, and does not have to be listed on your taxes. It’s considered by the government to be exempt from that. It saves me money, and it saves lives! Plasma cannot be manufactured, therefore it’s crucial for people to donate to help people with autoimmune diseases, meaning people who’s bodies don’t make plasma themselves. It’s literally 2 hours out of my week, and it’s been my financial life saver. Also, knowing that you are helping to save lives is so valuable!!!
I own my home and car I only have a small percent in cr. Card and on one no interest for the next 16 months or more. I have a few ira accounts with easy access one account is 3 miles from my home all I need to do is sign my name and walout the door. Also several thousand in a checking with interest checking I feel I am fairly well set