Putting Off Retirement Money

We were investing 10% of part of DH’s pay for I think 14 months. We decided to stop investing for the time being because of our bad house buying decision which put us living paycheck to paycheck.

Of course we didn’t think about stopping it until the last minute so it’s only been since September that we are seeing that 10% again. We did decide to use all of that 10% to go toward credit card debt and are also going to use the raise toward that debt.

We figure we will be credit card free by February at the latest and car pyament free by next September. We need to take another look at our money situation since the raise kicked in.

Once the car is paid off, we are going to contribue 10% again. We will still have debt – student loan, houses – but know that since we are young (I’m 28, he just turned 27) all the saving we can do now will pay off in the long run.

Dave Ramsey says to not contribute to the IRA, retirements, etc., until you are debt free – well, actually following the debt snowball you pay off all debt by the house(s) and then do your emergency savings then start to invest. We need to pick which plan we are going with I suppose.

DH has a four day weekend starting on Friday so this weekend we will look at our financies and bills and come up with a new sort of budget (I’m not sure I like the word budget though).

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