So, after giving it some MAJOR thought, I have decided to dip into my investment account to pay off just about all of my credit card.
The reason I decided to do this is because my credit card APR is 14%, and I’ve only been paying the minimum balance on it the last several months. I used to pay more, but what would happen was I’d then be cash poor and end up having to use the credit card again…not smart at all.
I took out $1500, which would leave $269.93, which I should be able to pay in 1-2 months.
My next goal would be to aggressively build up my emergency fund, which even with the extra money will seem like it will take forever. š¦
If I saved $430/month that would just be $5,160 after twelve months, combined with my current emergency savings that would be just shy of 10,000 after one year. My goal would be $15,000 in emergency savings before I even start thinking about putting money towards retirement/investments.
BUT, if I do rent out my garage, AND make more per month than projected**, then things will go a lot quicker.
When I think of things this way, it make me a LOT more motivated to make extra income each month!
It looks like this month that will be $2486 over projected! But remember next month could be under, which is why freelancing is such a roller coaster.Ā
Budget & the Beach 
You have some strong financial goals in place and good for you for paying off your debt. Do you enjoy working from home as a freelancer?
There are some aspects of it I like. I LOVE working from home. I’m not one of those people who needs co-workers, yet the stress can sometimes outweigh the benefits…and speaking of benefits…man I miss those! The ultimate goal would be work full time for someone, but from home!
Yeah I want that too! But I like to be able to have meetings and not be at home about 40% of the time. The rest I’d be happy working at home and walking the dogs at lunch š
I’d probably do the same. If you’ve got the money, why not pay off that debt that you are paying crazy interest on?
I think you made the right choice. Investing should usually tack a back seat to debt payoff. I have similar emergency fund goals. Great progress!
Yay! I would totally do the same. This reminds me of when I was paying off my credit card too. I focused on paying it off and then afterwards I was able to save almost 80% of my income.
Thanks for the support! I’m glad it sounds like the right decision. š