3 comments on “Financial Hits and Misses

  1. It sounds like you’re doing great!

    A piece of advice though: I read somewhere that the first step to financial peace (come to think of it, that’s the name of the book) is to create a savings buffer (usually a typical month’s expenses x 3) which you should never touch unless there’s an emergency or unexpected expense (like your mom’s medical insurance premium).

    Once you have that buffer, start hacking your debts to pieces (pay as much as you can afford above the minimum). Then, once you’re debt-free, start saving/investing. If you happen to dip into your savings buffer before you’re debt free, temporarily pay the minimums on your debts again so you can fill up the buffer first. That way you don’t pay off debts only to charge up expenses again.

    This worked for me, given a few modifications 🙂

  2. Thanks mags 🙂 Three month’s expenses is already almost equal to my remaining credit card debt =P I had a small buffer – equal to about a month’s expenses – but that’s what I used up for all the unexpected expenses.

    I so can’t wait to be debt free. I got investments lined up already!

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