Next step after credit card debt is paid off

[linnylu]

We finally have all of our credit card debt paid off and our car loan It is such a relief. I now want to work on our emergency fund. If we save for 6 months that is $18000. That seems next to impossible. Do you all save 6 months of expenses? I also want to focus on retirement and save for college for 3 children ages 8, 12, and 13. Is there a percentage I should be doing? I really have no clue what to do next so I'd appreciate any thoughts.

 

[FoundMyPrince]

We finally have all of our credit card debt paid off and our car loan It is such a relief. I now want to work on our emergency fund. If we save for 6 months that is $18000. That seems next to impossible. Do you all save 6 months of expenses? I also want to focus on retirement and save for college for 3 children ages 8, 12, and 13. Is there a percentage I should be doing? I really have no clue what to do next so I'd appreciate any thoughts.

 

[MouseloverJD]

Just wanted to say congratulations! Great job! Don't have a answer to your question but good luck!

 

[Gr8t Fan]

Congratulations on your progress so far!

We are a single income family so we have 1 year of expenses in our Emergency Fund and we're now working on paying off our house. After that we'll focus on college savings for our children and retirement.

 

[wheelcap]

Go to www.crown.org and follow their map. Your thinking seems to be in-line with their recommendations. Congrats on "getting out from under" that burden!!

 

[jessica52877]

Suze Orman suggests saving for retirement over college. Loans can be taken out for college.

Yes, I try to always have 6 months worth of everything in my emergency fund.

 

[bas71873]

We are a single income family as well as we have a 4 month emergency fund. I am trying to ge to 6, but we also put money each month into 2 IRA's, DD's 529, DD's savings and our vacation savings account. I'm stretched thin, but we do it .

good luck and congrats on being credit card debt free.

 

[amymeyer]

Congrats!

 

[amymeyer]

good job!

 

[linnylu]

Thanks everyone! It is a relief. We were about $30,000 in debt plus an $11,000 car loan. We got it all paid off in about a year. The biggest problem is DH is self-employed and his pay varies each month.

 

[tinkarooni]

Congratulations. Having a 6 month emergency fund is a great goal. If you paid off $41,000. worth of debt and car loan I think you can definitely do the $18,000 for your emergency fund. Just remember to pay yourself first, decide how much into savings and put that there first. It is completely worth it. Once you have your fund in place than you can move onto your next goal and sleep well at night knowing you are protecting your family.

Good Luck to you!

 

[tevisco4]

Congrats! What steps did you follow to get paid off? What worked for you? We are working on paying our debt down, so was just curious.

 

[apnep]

Thanks everyone! It is a relief. We were about $30,000 in debt plus an $11,000 car loan. We got it all paid off in about a year. The biggest problem is DH is self-employed and his pay varies each month.

WOW! What a fantastic job you did! Keep going! You'll have your savings in no time!

Ang

 

[MommyBell08]

WOW! What a relief. I hope to be posting this same post in year or so. Sounds like Dave Ramsey? I dont have an answer either, but congrats! What a blessing! CREDIT CARDS SUX!

 

[disney1990]

Congratulatons on paying off your debt.

I have now been out of work (except for some temporary short term work) since February 2009 -- 15 months.

Definitely get working on that emergency fund, although I am not sure that 6 months is enough these days.

 

[enchantingodin]

I honestly say it would depend on what field your Hubby is in as to how much of an emergency fund to have. Since you're wavering why not compromise? Make sure you have at least 3 months saved, then work on beefing up retirement. Get an additional 3 months saved, then work on the kiddos college funds. Maybe another 3 months put away, then pay off the house...

And awesome job paying off that debt!

 

[NYCDiane]

Emergency Fund first -- take all that car payment and credit card money and put it in the emergency fund

Retirement Savings second -- you only get one shot at this. Make it count.

Kids' College last -- they will have opportunities for loans, grants, scholarships, work study, or paying on their own. Yes, it's important to help them but it's more important to have your emergency money and money for you retirement first.

 

[VAN]

Agree with NYCDiane ... get your emergency fund beefed up and then focus on funding your retirement. Once you feel that is under control then start putting a small amount of money aside each pay period for college and then don't forget to start saving for your next vehicle so you can pay cash for that.

Congratulations on being debt free!

 

[wdwfan16]

Thanks everyone! It is a relief. We were about $30,000 in debt plus an $11,000 car loan. We got it all paid off in about a year. The biggest problem is DH is self-employed and his pay varies each month.

Since your DH's job pay varies and you have been able to pay off $41K in just a year I would definitely get a 6 month EF. After that have him max out his retirement account and then if you still have money put it into the kid's college funds.

 

[kteesmumma]

Congrats....and Good Luck..Keep us posted on how its going