So, I have exciting news! Well, exciting for our household anyways. My husband’s car is now paid off! No more car payment! No more car loan! Ya hear that? That’s us sighing in relief…
But, I don’t want us to be irresponsible now that we no longer have a car note. Now granted, we are not the kind of people who are like “Hey, now we can have steak for dinner every night”, or “Let’s go to Vegas with our newfound dollars and have some fun!” Tempting, but no.
But we are the kind of people who will spend it on things that are inconsequential or not really needed. Before you know it, the extra money will be gone and we’ll both be staring at the checkbook wondering where the money went.
So, I want to be adult about this. I want to be smart. I want this money to go to what counts. I want this money to go to good use. I want this money to work for us.
My first inclination is to start funneling this extra money towards our emergency fund. Our EF is pathetic at best, and needs to be beefed up. I am always scared that some catastrophe is going to come up and we are going to be royally screwed because our emergency fund is on life support.
My second idea is to start making larger payments towards the credit card. I mentioned previously that this card has a high balance because of veterinarian bills associated with my previous cat who has since passed. This card needs to go away and I am tired of making payments on it. I am even more inclined to pay this card off because the lovely company that owns the card, sent out a letter saying they are now going to charge a $59 annual fee. They then had the nerve to say thank you for being such a loyal customer. Ummmm… you’re not welcome?
Of course there is a teensy tiny infinitesimal part of me, that wants to buy things. Shop at stores and fill my cart. But that is not going to happen. I have bigger goals and dreams and they do not include brand new dinner plates.
So what do you guys think? Should we throw the extra money into the emergency fund or make bigger payments on the credit card?