Financial advisor vent

[Kris10Leigh]

Re: Financial advisor vent

I figure the freedom account can also act as a sort of emergency fund. If we had an emergency, we could pay for it with the freedom account and then stop paying on the CC's while we reimbursed ourselves. Unless I am just being naive.

[Thrifty Ray]

Re: Financial advisor vent

I figure the freedom account can also act as a sort of emergency fund. If we had an emergency, we could pay for it with the freedom account and then stop paying on the CC's while we reimbursed ourselves. Unless I am just being naive.

I also have a freedom account that I use for very similar reasons..I keep it in an excel workbook with a tab for each savings category...but my FA also includes a 'miscellaneous' or ermergency category.

If I run into an emergency, i pull from the miscellaneous and if I need more, I pull from one of the other categories. So, in essence, your freedom account could be used in an emergency, but it is probably wise to earmark $$ specifically for emergencies.

[Ima saver]

Re: Financial advisor vent

Yeah, if you can do it, it is better to have two funds. There will always be an emergency and you don't want to use your christmas money to pay for it. I have had an emergency fund almost all my life and I have had to use it a few times.

[Kris10Leigh]

Re: Financial advisor vent

I understand what you guys are saying. Does it help that I have overestimated a few costs? LOL! I feel like a stubborn child saying "But I don't want to!" I want to pay off that CC debt as fast as I can because it has been hanging around FOREVER! Prior to our marriage I was really good with money! I bought a $1500 flute in the 8th grade...with babysitting money! That flute is still worth every penny too and I have made back at least 20 times that by teaching flute lessons. So I want that debt gone! But I also understand that part of the reason we can't rid of the debt is because emergencies to pop up and our only source at that point is the CC's.

[Ima saver]

Re: Financial advisor vent

That is right, Kris. Emergencies happen to everyone and if you have the money saved, you won't have to charge it and pay interest on it. It is hard to get debt paid down because interest is added in every month.

[Thrifty Ray]

Re: Financial advisor vent

In essence, you will be paying off your debt and setting up a safety net for future emergencies at the same time.

If you have padded some of your FA categories, just scale them back to a minimum you are comfortable with and earmark the extra for emergencies.

I did this for my daughters wedding.

I scaled our vacation fund from $10 to 5, our Christmas fund from $50 to $30, our car repair fund from $10 to $5...and we just adjusted expenses accordingly....all the money saved by scaling back went into the wedding fund...and i was able to pay for the wedding in cash.

Massage your numbers...you may have your emergency fund savings already and can continue to pay down the debt.

[Ima saver]

Re: Financial advisor vent

That is a good idea, Ray. I usually cut my christmas fund and my misc fund to come up with exta money some weeks. Perhaps you can take the money your husband is getting back, and have a emergency fund and a freedom acct., split the money in other words.

[boefixepa]

Re: Financial advisor vent

I put a little extra in budget categories and they work like little emergency funds to balance things out. I have meds that cost $30 every month. I put in $35 so when I need another med for an illness there is extra money already in the meds category for this. I put more than I need for oil changes in the auto care category so when I need new tires or brakes the money is there. This means my 'emergency fund' is really only used for real emergency just not periodic known expenditures. Toss that idea around and see if you can tailor it to your needs.

[Ima saver]

Re: Financial advisor vent

I do the same when it comes to prescriptions that we need to get. Ijust budget more than I usually need so if we are sick and get a one time prescription, it will be covered. We try not to touch the emergency fund unless it is a big emergency!

[shanecurran]

you asked for his advice and he gave you a suggestion. You don't like his suggestion, but don't be mad at him because you don't like the suggestion.