<< Back to all Blogs
Login or Create your own free blog
Home > Archive: November, 2008

Archive for November, 2008

I know this is a bad plan...

November 6th, 2008 at 06:52 pm

but I don't know what else to do. It's purely emotional but here is what I plan to do:

Effective immediately I plan to stop all contributions to my 401(K), cash savings, daughter's college savings and individual stock purchases. The 401(K) + cash= 10% of my gross income. My daughter's college savings= ~3% and the stock purchases ~1%.

This has nothing to do with the current stock market. I have some debts I would like to pay off once and for all and I am tired of the snail's pace. Here's what I have left:

One credit card: $7677 at 0% interest set to expire in July '09. This balance represents my old car loan which I transferred to get the 0%.

Student loan: $9995 at 4.25% interest.

By stopping those contributions and throwing everything I have at the debt then I will be debt free this time next year excepting my home mortgage.

I will then have a third of my gross income free to save and invest. My plan after that is to contribute enough to the 401(K) to get the company match(it doesn't kick in until July anyway) and with the rest I will build up my EF. If something extraordinary doesn't happen like I lose my job, then I think it should be okau.