Comments on: Money Magazine’s What to Do with $5,000 http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/ A personal finance blog for career minded women with small budgets and big dreams. Wed, 09 May 2012 23:42:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymous http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1246 Anonymous Thu, 27 Apr 2006 16:34:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1246 Thanks for the advice all. I put 1k into the hsbc savings, and am focusing on paying off the debt. By years end i will be debt free, CC's, Student Loans, and am upping the savings. I really appreciate and am an avid reader of the blog. Thanks for the advice all. I put 1k into the hsbc savings, and am focusing on paying off the debt. By years end i will be debt free, CC’s, Student Loans, and am upping the savings. I really appreciate and am an avid reader of the blog.

]]> By: Anonymous http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1245 Anonymous Thu, 27 Apr 2006 14:56:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1245 After 20 years of advising borrowers in Commercial Banking, I would recommend dividing the funds up 3 ways. First, make sure you have an emergency fund so put $1,000. in a savings account. Second, you need to review your debt postion. Are you barely struggling to meet your obligations? If so, try to consolidate and get on a BUDGET! I never recommend that an individual put all of a windfall (tax return, bonus, etc.) towards debt unless they have no other option. Many people disagree with this but saving money is much more important than trying to payoff debt early. Once you become a seasoned saver, you will be able to handle the debt easier and erase it quicker. Finally, everyone needs a cash position that that includes 3 to 6 months of living expenses. The more you have in this account, the better. After 20 years of advising borrowers in Commercial Banking, I would recommend dividing the funds up 3 ways. First, make sure you have an emergency fund so put $1,000. in a savings account. Second, you need to review your debt postion. Are you barely struggling to meet your obligations? If so, try to consolidate and get on a BUDGET! I never recommend that an individual put all of a windfall (tax return, bonus, etc.) towards debt unless they have no other option. Many people disagree with this but saving money is much more important than trying to payoff debt early. Once you become a seasoned saver, you will be able to handle the debt easier and erase it quicker. Finally, everyone needs a cash position that that includes 3 to 6 months of living expenses. The more you have in this account, the better.

]]> By: Nicole http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1243 Nicole Wed, 26 Apr 2006 20:31:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1243 Yes anon,<br/><br/>I posted that article as more of an FYI than a strategy. I definitely advocate paying off your debt since most borrowing rates are so much higher than the return rates most investments and savings accounts generate. <br/><br/>Some people say that student loans are OK to pay off more slowly since the loan rates are so low. Mine student loan debt is locked in at 3.5%, but I'm paying more than the minimum each month anyway.<br/><br/>Nicole Yes anon,

I posted that article as more of an FYI than a strategy. I definitely advocate paying off your debt since most borrowing rates are so much higher than the return rates most investments and savings accounts generate.

Some people say that student loans are OK to pay off more slowly since the loan rates are so low. Mine student loan debt is locked in at 3.5%, but I’m paying more than the minimum each month anyway.

Nicole

]]> By: Heather http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1242 Heather Wed, 26 Apr 2006 17:27:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1242 Hey Anonymous, If you have a lot of debt, that's a bigger problem than a dip in your credit rating!<br/><br/>Closing all credit cards at once is not the smartest, but paying them off is a good thing. Hey Anonymous, If you have a lot of debt, that’s a bigger problem than a dip in your credit rating!

Closing all credit cards at once is not the smartest, but paying them off is a good thing.

]]> By: Anonymous http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1241 Anonymous Wed, 26 Apr 2006 14:11:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1241 I guess i'm a bit confused, as i've read that paying off alot of debt at one time can acutally hurt your credit rating.. I guess i’m a bit confused, as i’ve read that paying off alot of debt at one time can acutally hurt your credit rating..

]]> By: G. http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1240 G. Tue, 25 Apr 2006 21:53:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1240 Great post, I enjoy reading your blog. This is very useful information and is very helpful. Keep up the good work. I've added a link to your site from my blog Great post, I enjoy reading your blog. This is very useful information and is very helpful. Keep up the good work. I’ve added a link to your site from my blog

]]> By: Rich in Spirits http://thebudgetingbabe.com/2006/04/25/money-magazines-what-to-do-with-5000/#comment-1238 Rich in Spirits Tue, 25 Apr 2006 03:32:00 +0000 http://thebudgetingbabe.com/?p=192#comment-1238 this is so helpful! thanks for posting. i am trying to pay off a lot of debt (and keeping track of my progress on here), but i am also trying to learn about what the smartest investments are, for when i am ready... i'm glad to see other young females blogging about money! this is so helpful! thanks for posting. i am trying to pay off a lot of debt (and keeping track of my progress on here), but i am also trying to learn about what the smartest investments are, for when i am ready… i’m glad to see other young females blogging about money!

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