need some advice coming into a chunk of money. - Page 2

Kim · 08-15-2007, 06:52 PM

Quote:

Originally Posted by Jared&Maggie'smom

Well, this is what I would do... I believe that it is what Dave Ramsey would say...I would take $2K and put it into an emergency fund and then take all the rest and pay off any debt (CCs). I think that by doing this you are going to help your children more in the long run than putting $ into an account for them. If you have CC debt I am going to assume that you are not able to save much for retirement. If you have debt and can't save for retirement you are going to be hurting much more come the age of 65 or so than your children will at the age of 18 when they choose to go to college. Your children can always get loans if necessary to go to college. No one will give us a loan to retire on.

I hope that doesn't bother you. But I think that you are better off paying off debt first.

I agree with your stance on saving for retirement before the kids' education. I might lean a little more towards putting the whole sum towards paying off any cc debt before building an emergency fund, however, but that's JMO.

Denvergirlie · 08-16-2007, 10:42 AM

Kids can always borrow money for college, one can not do the same for retirement.

That being said, set aside a small amount for an emergency fund, maybe $2K or at least one month of expenses. Then the rest goes to debt.

Have you ever listened to/ read Dave Ramsey stuff? if not I highly recommend doing so ASAP.