Comments on: Smoothing Out those Bumps in the Road http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/ Our Journey to a Debt-Free Life Sat, 21 Nov 2009 08:35:00 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Life After Credit Card Debt – June was a Frustrating Month » Blogging Away Debt http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/comment-page-1/#comment-819463 Life After Credit Card Debt – June was a Frustrating Month » Blogging Away Debt Sat, 27 Jun 2009 04:39:08 +0000 http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/#comment-819463 [...] guess even though we achieved our goal of paying off our credit card debt, there will still be the bumps in the road that I talked about a few years ago. We’ll get through this rough patch and then be on our [...] [...] guess even though we achieved our goal of paying off our credit card debt, there will still be the bumps in the road that I talked about a few years ago. We’ll get through this rough patch and then be on our [...]

]]> By: Donna http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/comment-page-1/#comment-13464 Donna Wed, 31 Jan 2007 21:17:47 +0000 http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/#comment-13464 We are trying this year to use our flexible spending accounts like savings. We plan on saving our receipts then reimbursing them after they have built up a little then using those to pay off a bill or get needed car maintenance. It helps us to also live off our net income and getting used to the flex payments as savings deposits. We are trying this year to use our flexible spending accounts like savings. We plan on saving our receipts then reimbursing them after they have built up a little then using those to pay off a bill or get needed car maintenance. It helps us to also live off our net income and getting used to the flex payments as savings deposits.

]]> By: HC http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/comment-page-1/#comment-13334 HC Wed, 31 Jan 2007 15:13:31 +0000 http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/#comment-13334 I strongly support #2. I have no dependents, but I still have life insurance because I'd want my father to get some cash if anything were to happen to me and I wouldn't be around for him at retirement. Since you have a son, it's even MORE important to have adequate coverage ("adequate" is defined in different ways, but means at least enough to pay off all your debt). Disability insurance is just as important, but it's expensive (because the insurer is more likely to pay out benefits). Shopping around may help. I personally don't have it, and just save up my annual and sick leave as much as I can as a substitute. I strongly support #2. I have no dependents, but I still have life insurance because I’d want my father to get some cash if anything were to happen to me and I wouldn’t be around for him at retirement. Since you have a son, it’s even MORE important to have adequate coverage (”adequate” is defined in different ways, but means at least enough to pay off all your debt).

Disability insurance is just as important, but it’s expensive (because the insurer is more likely to pay out benefits). Shopping around may help. I personally don’t have it, and just save up my annual and sick leave as much as I can as a substitute.

]]> By: Mission Debt Freedom http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/comment-page-1/#comment-13310 Mission Debt Freedom Wed, 31 Jan 2007 14:49:18 +0000 http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/#comment-13310 I know exactly what you mean. I created some sinking funds using an online savings account for just that purpose. I budget $200/month to this fund, and allocate the $200 across five or six sub-fund, if you will. Things like the 6-month car insurance premium, annual life insurance premiums, vacations, car inspections, etc. all have their own sinking fund and get their portion of the $200 contribution (higher annual amounts get more of the contribution, proportionally. I know exactly what you mean. I created some sinking funds using an online savings account for just that purpose. I budget $200/month to this fund, and allocate the $200 across five or six sub-fund, if you will. Things like the 6-month car insurance premium, annual life insurance premiums, vacations, car inspections, etc. all have their own sinking fund and get their portion of the $200 contribution (higher annual amounts get more of the contribution, proportionally.

]]> By: BigBuddha http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/comment-page-1/#comment-12952 BigBuddha Wed, 31 Jan 2007 06:51:01 +0000 http://www.bloggingawaydebt.com/2007/01/smoothing-out-those-bumps-in-the-road/#comment-12952 Building up a cash reserve is essential to smoothing out your cashflow 'bumps', also spreading breaking down the cost of major expenses you know you'll have throughout the year into monthly chunks will ensure you'll have money when the time comes. These expenses may include Car Registration, House insurance etc. Building up a cash reserve is essential to smoothing out your cashflow ‘bumps’, also spreading breaking down the cost of major expenses you know you’ll have throughout the year into monthly chunks will ensure you’ll have money when the time comes. These expenses may include Car Registration, House insurance etc.

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