What would you do with an extra $4,150?
October 9, 2009 7 Comments
I decided to do a little thought experiment and see how much money I’ve paid to my debt in the last 6 months (pretty simple experiment to run since I do my bill pay through BofA).
As it turns out I’ve paid $4,150 in the past 6 months just to DEBT. YUCK. Granted, in that period of time I paid off two cards (if we were to go back another 6 months you’d see two other credit cards I paid off, too).
However, if I didn’t have my debt that would have been $4,150 that could have gone into savings. Building an emergency fund, savings for a 401(k), paying off the student loan, or putting into my mutual funds. Over a year I would be able to have saved over $8,000 into an emergency fund. Or lowered my student loan debt in half.
Of course, these are all things that I will be able to do once I pay off my credit card. But I need reminders every now and then of how much I’m LOSING by having this debt – to remind me to stay strong and keep pushing along!