I just starting budgeting and writing this blog this month. Therefore, my saving meters have not really made any progress. So, with the start of next month comes excitement. And also decisions. As I was driving to my tennis match last night, I started thinking. . . . how actually should I allocate my money every month and am I making the most of my money. Here are my two thoughts.
First, I am hoping to increase my "fun in the sun"/emergency fund to $6000 by the end of the year. That means with 9 months left I need to make contributions around $334/per month. Currently, I am contributing $500/per month. My thought is this. . . should I only be making the $334/per month contribution and applying the additionally $166 towards paying off my credit cards?
Second, along the same lines is this thought. . . should I actually deposit $900 at the beginning of every month into my ING/"fun in the sun" account and withdrawing the $400 or maybe $566 amount around the 20th of every month to make my credit card payments by the 26th?
Or should I just continue to contribute the $500 per month until I reach my $6000 goal and then start snowflaking the $500 per month contribution into my credit cards?
The credit cards are definitely at a higher interest rate than I am earning on my ING account. So, the faster I pay them off, the better I will be. I think that I am going to pay with my budget a little during the month of April and see what I can come up with. Any thoughts are greatly appreciated!