I have been dragging my feet when it comes to stashing money away for a rainy day. It’s been hard for me to think about saving money earning less in interest than what we are paying towards our credit cards. But there is something to be said about having some cash stashed away if you need it. We have $122 currently in a savings account but that really isn’t enough.
Since we’ve hit the debt hard this past year, the beginning of the second year I am focusing on stashing some money away. Not a whole lot, but I think a good amount for us to start with is enough to cover all of our expenses for a month. I ran a report of our spending last year and it looks like $2,500 should be enough to cover a month of necessities and debt payments. I’m comfortable with that amount and it would provide a sense of security.
My husband’s temporary job has been extended for a while longer and he also received a raise the other day, so I figure we should be able to save $2,500 within a few months. I look at that amount and I realize that if we paid that amount towards our credit card debt we would be under the $20,000 mark. I really want to hit that milestone, but I feel at this point in our journey we have to get some cash stashed away.
It’s time. I’m ready to starting saving.