Money Matters
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Dave Ramsey's Debt Snowball
Question for any of you who have used or are using Dave Ramsey's Programs. Husband and I have been married almost a year, and he is in grad school. The area we are in has little to no job opportunities so I am currently working as a waitress. We have a little egg saved up, but are trying to use Dave Ramsey's Debt Step program. We have more than the 1,000 saved up for the emergency fund. Do we keep the rest of our 'nest egg' to be safe or throw the rest (or at least a hefty portion of it) at my school loans? Any thoughts?
Re: Dave Ramsey's Debt Snowball
I would say depends on how much you have in loans, the interest rates, how much you have available to put toward debt and how much is in the nest egg.
My personal decision once the CC's and cars were paid off was to focus on building a 3-6 month cushion before throwing everything at student loans and the mortgage. We made this choice because DH is also back in school, so if something were to happen to my job we don't have much to fall on with his income. Once that's built up we'll take the additional money and throw it at the loans. Yes, I'm paying more interest, however it's a safety net.
BFP 11.8.12 * EDD 7.17.13 * MC 12.20.12
Whiskey Tango Foxtrot, over!
I would add more to your emergency fund or general savings. When your DH finishes his program you will most likely be moving if job possibilities are limited in your area. You will need moving costs, rent deposits and living expenses until he gets his first paycheck.
Unless your student loans have a high interest rate - I would focus on savings and maybe add just a small amount extra on the loans every now and then until you are both established in your new jobs.
I know you have more, but are you planning to keep your emergency fund at $1,000? That would get me about 2 weeks, but I also live in a HCOL area.
I would add to your emergency fund until you have 6 months of living expenses saved up. Normally I'd say 3-6 months, but since your H is in school (I'm presuming he is not working) and the job opportunities for you aren't great, I'd go on the higher side. Then I would start paying off your higher interest loans.