Save or pay off the Line?

Q & A

Save or Pay off the Line?

I am a huge fan of the show. I find myself a little obsessed over money, banking, making changes to do with money. I am constantly checking my account balances. I would say that every two days is the norm for me. I always have scraps of paper on the counter, running all kinds of numbers with how much money we have and where it can go. My husband thinks I am crazy. But looks forward to his allowance. I have made a list of 5 major things that I am saving for this year and how much I should put away each month, which is about $300 a month. Do you think it would be better to keep it in a savings account or put it towards my line of credit? And then take it out when needed. Also my ten-year plan is to pay off my mortgage and line of credit. I have increased the mortgage 10% which took off about 4 years. Do you have any other suggestions? Any advice would be greatly appreciated. Thank you.

Victoria

Whoa girl, slow down. I can practically feel you racing through life.

First, I'm glad you like the show and that you've take the advice to heart.

As for checking everything every couple of days, I'm with your husband: you're nuts. The point of planning like a pessimist is so you can live like an optimist. If you're obsessing (which I think you may be), you're just going to wear yourself, and everyone else, out.

I'm glad you're setting goals for yourself and planning your spending. Setting aside money to buy things is the way to go.

But then there's the whole outstanding line of credit thing. You should not be buying one more thing until that line is PAID OFF! Say it with me, Victoria:

"I will not buy anything until my line of credit is paid off!"

That's my advice.