First, I budget for everything. For example, I paid off my car five months ago but in my budget I still have a line item for it. That way, when I need to go in for some maintenance, I've already saved it up because some maintenance, even if it is an oil change will occur sometime this year. At the end of each month, if I have money left over in my checking I then add that to my emergency fund. So yes, I will be dipping into my emergency fund when my car needs that maintenance, whatever it is, but I've presaved for it in my budget.

Secondly, I don't let myself think about extra purchases like books and shoes affect my debt snowball. If I am applying $100 toward debt then that is what I am applying. That way, if I fall short one month in living expenses, I force myself to wait it out because I am not touching the debt payment. But, if I have a little extra one month, I also don't apply it toward the debt but spend it on the items I have been needing but holding off on.

I'm sure there are many other ways to handle this but this is how I handle all the weird extras that come up. I try to budget for it all and in the months it doesn't get used I roll it up to the emergency fund for later in the year (Mostly this applies to my gift giving at xmas, my car, and vacations).

Hope that gives you some ideas!!
Anon | 02.26.08 - 4:12 pm | #

Great to read ,


Thanks ,


Tracy Ho
wisdomgettingloaded
tracy ho | Homepage | 02.27.08 - 1:44 am | #