Question

Looking for some suggestions.  I realize we need to do some adjusting as far as our taxes and withholdings and such.Looking for some suggestions. I realize we need to do some adjusting as far as our taxes and withholdings and such. But we are getting close to $13, 000 back for taxes. Our debt, not including our mortgage or student loans, is around 18, 000. I know for sure that we want to tuck away maybe 3 months for our mortgage. My husbands work depends on weather so his pay isn’t reliable in the spring time especially. We have about $1, 400 left on our car loan. Where do I start? Should every dollar we get back have a purpose? Sorry if these are dumb questions. We want to be smart about this. Thank you all!  

Answer 1

To add: we do not have our emergency fund yet either. We are ready to get started on this. We’ve watched all the videos and have all of our bills written out as well.  

Answer 2

Miko suggests to make a plan for all of your return. if this were me i would have the $1000 EF, pay off the car loan, putting aside the 3 month mortgage ain't a bad idea, then the rest go toward any other debt.  

Answer 3

Give every dollar a purpose! Fund the EF so you don't fall back in to the card swiping cycle when emergencies come up. Set aside some money to help with covering the husbands irregular income and then pay down debt. Paying off the car should free up more monthly money to throw at debt!  

Answer 4

EF, then fund sinking funds that you will need soon (mortgage, car registration, gifts, things you are going to buy no matter what and putting away money will keep you from putting them on a CC or scrambling for money), then debt. List out all your debt and decide what your priority is. Pay on the smallest ones, the ones with the highest interest, the ones that make you angry, the ones that free up the most money, the ones you owe to family, etc.  

Answer 5

I personally would save for the 3 months expenses. Pay off car and $1000 to EF then You can use your car payment to help pay down any debt you have with the remaining return.  

Answer 6

Pay the car off! Then put your 3months away (smart plan! Way to go! ) ooh since no ef add a $1000. (Technically your 3mo IS an EF) Then pay those student loans with the rest. Without that car pmt you can now throw that money to student loans!