What would you do with an extra $4,150?

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!

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7 Responses to What would you do with an extra $4,150?

  1. BDO says:

    That is a great way to look at it! One other consideration was the interest lost to debt. If we were able to save up the money instead of buying it with debt, we would accumulated some interest with our savings as well. We just need to get rid of debt, making other people rich and start saving to make ourselves better.

  2. Jessie says:

    It’s an interesting way to look at it for sure… I often wonder how much closer I would be to buying a home if I did accumulate little bits of debt that turned into gobs of it.

  3. Pingback: Debt Reduction Update « Get Out of Debt, Girl!

  4. Laura @ mtp says:

    I know how you feel, but you will get there. Keep going you’re doing so well 🙂

  5. beachgirl says:

    I posted a reply about creating the scrapbooks on my site (http://beachgirlsblog.wordpress.com/my-2009-goals/). Thanks for asking about it.

  6. Ann says:

    I was just looking at my budget last night and dreaming of the day when the monthly contributions toward debt would be zero .! Hmmm, I know I could do a lot with the money I’m throwing at debt every month! I want to tackle it sooner than later so I can get to the important business of doing more travel, saving up for a home, and having an E-Fund with six months of expenses saved up! 😀

  7. MPP says:

    Don’t think of what you COULD have spent but congratulate yourself that you’ve paid off $4500!! That is awesome! It always makes me depressed to think of the money that goes to debt could go to other things. But you’re right: once you’re done, you’ll have all that money for other things. That will be such a happy day! 🙂

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