Andy Hough

My Emergency Fund is Tempting Me

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Now that I have my emergency fund established I am tempted to spend it on non-emergencies. My credit card debt is down to $724 and I could eliminate it if I tapped my emergency fund. That isn’t what the emergency fund is for though and since the credit card debt is at 0% and my emergency fund is earning 5.05% it wouldn’t make sense to pay off the debt.

I do however have a private student loan that has 11.75% interest. That loan balance is almost $2,000 so I couldn’t pay it off with my emergency fund but it would certainly help me pay it off faster. It does seem somewhat illogical to keep money in savings at 5.05% when you are paying 11.75% but I like knowing that I have the emergency fund available. I’m considering being even more illogical and paying off my credit card before the private student loan simply because I can pay off the credit card faster and have one less debt. As long as I am making progress I’m not going to be overly concerned with whether I’m doing the thing that makes the absolute best financial sense.

The Confidence to be Frugal

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A recent post at Make Love,Not Debt told of a scenario where Him walked out of a restaurant after realizing the prices were higher than he wanted to spend. He noted being rather uncomfortable doing so. I used to be the same way. I would worry that other people would think I was cheap or otherwise think less of me due to my frugal habits. I’ve come to realize thought that frugal is what I am and I have no shame in being who I am and doing what is right for me to do. I can’t control what other people think of me and I’m not going to worry about it.

Three Questions That Can Change Your Spending Habits

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The personal finance book that has had the most influence on me is “Your Money or Your Life” by Joe Dominguez and Vicki Robin. If I had faithfully followed all the steps in the book from the time I first read it I could be retired by now.

 One of the most powerful steps in the book is the Three Questions That Will Transform Your Life.  These three questions should be asked when evaluating your spending. They are 1. Did I receive fulfillment, satisfaction, and value in proportion to life energy spent? 2. Is this expenditure of life energy in alignment with my values and life purpose? 3. How might this expenditure change if I didn’t have to work for a living? By applying these questions when evaluating your spending you most likely will not only reduce your spending but change the thing you spend your money on.

Still Out of Law School

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The Re-Admission committee met yesterday and decided not to let me return to law school this semester. The good news is I haven’t been dismissed from law school and have a chance to return next semester. There are some things they want to see me do before I will be readmitted. In the meantime I’ll continue working and try to improve my financial situation before returning to school.

Looking for a New GPT Site

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Kira of PennyFoolish is closing her GPT site Cashduck. This bummed me out for a couple of reasons. First, I was beginning to build up a lot of referrals there that looked like they could lead to steady, passive income. Secondly, I’m thinking of starting my own GPT site and have already bought the software. If Kira couldn’t make money with Cashduck I’m doubtful whether my site could make money. I’d like to get some recommendations of other GPT sites that people have found to be reliable. If I don’t start my own site I’ll be promoting a new GPT site if I find one I like.

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