Question

Curious to hear people's thoughts: if you came into a bit of extra money, would you use it to fill up your sinking funds or pay off debt?  

Answer 1

Sinking funds right now

Comments

I’m debt free except for student loans & I’m still in school so I’m not actively trying to pay them down right now.  

Answer 2

I would put it towards debt personally

Answer 3

In this uncertain economy I’d fill up sinking funds and make minimum payments. You can always go back and use towards them if things don’t get worse.  

Answer 4

Debt debt debt.  

Answer 5

Debt. Unless you have a sinking fund that your worried about being able to fund in time or something like that.  

Answer 6

I’ve used mine to pay off debt

Answer 7

I put a bit into debt, and a bit into savings.  

Answer 8

Depends on amt if money receiving, how much debt and how much in savings.  

Answer 9

I’d pay off any credit card debt ASAP!  

Answer 10

Depends. if I thought I’d continue to create more debt with things that COULD have been sinking funds, then I’d use it for those. If I knew my sinking funds were sufficient to cover upcoming stuff, I’d use for debts.  

Answer 11

For me, emergency fund. I don’t think mine is large enough especially with everything going on. I want 6 month emergency fund so I’m adding to it every month. My debts are being paid down just not as fast as I had been

Answer 12

Debt or emergency savings

Answer 13

Well, sometimes i do partial to each

Answer 14

Half to debt and half to savings

Answer 15

Right now every penny would go to necessary bills and the rest in savings for when this thing blows up again.  

Answer 16

If I had debt, I'd deal with that. It sucks you dry. I didn't have debt so have stashed it as if it doesn't exist while I build my own 3-6 months expenses.  

Answer 17

I think it depends on how soon your sinking funds are due. For example my car insurance is due every 6 months. If it was coming up, I’d stock my sinking funds. If I had just paid it, I’d throw it at debt.  

Answer 18

I’m having a baby and planning on moving so it would go to a house buying /moving fund. My only debt is a student loan so the house to me is more important so I don’t go further into debt

Answer 19

Debt  

Answer 20

Pay off debt

Answer 21

To me personally it would depend on the amount I received and then how much debt I have. If it's $1000 and my debt is $40k I would fund my sinking funds and then snowball those funds to the debt. If it was $5k and I have $7k in debt I would pay down the debt. I hope this makes sense. Or if I had a debt that it would pay completely off I pay it off depending on the interest rate and what exactly it is.  

Answer 22

I would say depending on how much it is maybe split it

Answer 23

It depends. But likely some of each. In the end it works out to going towards debt anyways. Once sinking funds are funded, that money can roll into debt.  

Answer 24

The extra $500 I made from my side gig, filled my sinking funds.  

Answer 25

Both ! Payed 2 car payments and put some in my sinking fund for car tags ! Wooohoooo extra money is like winning at BINGO !  

Answer 26

Debt 100% I always think about the extra money when all my debt is paid off. And the dreams and wants we have once everything is gone. Putting all extra towards debt gets us one step closer

Answer 27

Pay off debt

Answer 28

Pay off debt.  

Answer 29

Debt for me! Every single cent I have extra I’ve thrown at debt. Prime example. if I pay minimum on my cc it will take over 40 years and over 3X as much to pay off  

Answer 30

Pay off debt

Answer 31

Used it to pay off debt.  

Answer 32

Honestly, knee jerk reaction would be debt, but since starting the miko way, I may lean toward sinking funds, but emergency type ones. Car repair fund, medical that sort of thing. Her way has really freed some stress i used to have about the debt free journey. Its like I have permission to have more than 1000 ef lol

Answer 33

Pay off debt.  

Answer 34

Pay my debt before anything else.  

Answer 35

Depending on the amount - I usually do both.  

Answer 36

Emergency Fund then Debt. also depending on if you think you may get laid off storm mode might be appropriate.  

Answer 37

Definitely debt

Answer 38

It depends on a couple of things. If everything was normal debt if it was during the pandemic then sinking funds or even savings. Also depends on the amount. If it's a large amount spilt it, if its a smaller amount then goes towards one or the other

Answer 39

Some to savings (sinking funds) and some to debt.  

Answer 40

Pay off debt.  

Answer 41

I would! And whatever is left it would go to debt.  

Answer 42

I spread it to whatever makes me feel better

Answer 43

I would probably do both.  

Answer 44

A lil of both

Answer 45

We will be in the same position soon. We're buying some much needed equipment and then funding an emergency fund and sinking funds.  

Answer 46

I recently did and put a lot in my savings but I will be able to pay off all my debt by next month too.  (I only have one CC right now and no other debt).  

Answer 47

Half and half .  

Answer 48

Pay off debt. But I have a lot of debt lol

Answer 49

Pay off debt

Answer 50

Pay off debt and then throw what you were paying on debt into your EF/savings.  

Answer 51

Pay off debt

Answer 52

Sinking funds that are actually future bills not "wants" because they will become future debts if you dont have the money when you need it.  

Answer 53

Avoid new debt with sinking fund named "Holidays and Birthdays"

Answer 54

Pay off Debt

Answer 55

Bothhhhhh lol

Answer 56

I would probably do both, especially if I had some sinking funds that I was going to need to use soon (like car registration, etc. ). I also keep a list of stuff we need/want to do, savings, debts to paid off and the list is prioritized, so I would just go down the list.  

Answer 57

We split it. Half to debt, half to savings. A few times 100% to debt. With all that is happening I feel reducing our monthly output and having a cushion if things get really insane. What we save monthly when a bill is paid off early. We actually even slit that. We increase our savings and snowball. This way I'm impacting both.  

Answer 58

If your job at the moment is stable and you have no “planned unexpected” things coming up (car maintenance, going to the vet, copays, etc. ) put it’s towards debt!  

Answer 59

Definitely debt. Even if you have a savings, you don’t have money if you still owe it to someone else

Answer 60

Pay off debt. Any extra I would put to savings/sinking funds

Answer 61

I have been paying off my credit cards. but now I am trying to figure things out. My husband is going on unemployment now too and told me to save my money just in case. He also doesnt know the credit cards I have but I was rectifying it

Answer 62

Pay off debt. Any monthly payments you had with your debt you could put that towards sinking funds.  

Answer 63

Payoff debt and put extra into high priority sinking funds!  

Answer 64

Sinking funds

Answer 65

Emergency savings and debt. I'd split it

Answer 66

Pay off debt

Answer 67

Depending on the type of sinking funds. If urgent or coming soon I would fill those funds and do the rest on debt. That’s pretty much my formula for everything.  

Answer 68

Depends on how much much and what was needed for my sinking funds vs how much debt I have. for example if it’s $300 and my sinking funds for the rest of the year needed $500 total and I have $6, 000 in debt, it makes more sense to pay myself with that amount. Now if I got $2, 000 then I’d pay down debt. Make sense? That’s me at least.  

Answer 69

We used to to build our emergency fund as we had paid off all debts except home.  

Answer 70

Debt! Once those payments are gone you’ll have more to fill your sinking funds!  

Answer 71

Pay off Debt

Answer 72

Fill up sinking funds then pay more toward debt.  

Answer 73

Completely unexpected money would be split 50/50. I would stick to my savings plan as usual.  

Answer 74

I used it to pay off debt. The amount of interest rate charges to earned is higher. so I put money on the debt.