Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

what would you do w the money?

Posted by on Jun. 14, 2014 at 8:03 PM
  • 10 Replies


I am a single mom who receives no child support and have been struggling to pay my bills - I accrued about $6000 in cc debt supplementing my income for survival following the divorce.  I work full time through which I recently received a raise of an addiltional $200 per month and now also have a part time job.  I am finally at the point where I am able to pay all of my bills, contribute to savings and begin to pay off my cc debt. I also have a small emergency fund.

My regular monthly budget is based on 2 paychecks per month and my paycheck from my part time job - my budget includes $ toward saving and debt repayment....At my company we get paid 26x per calendar year -so Aug and Jan each have an extra check -In the past they were a lifeline...but for the first time I can  think of them like bonuses. - if I didn't get them we would still be okay... When I get the extra check in August I will probably set aside a couple hundred for school supplies and clothes for my children.  With the balance should I: 1)use the total amount toward debt and still make my reg budgeted debt payment (which will put a decent dent in my debt)...2) save all of the aug check as part of my Emergency Fund and only make my regular budgeted debt payment or split the extra check 50/50? or should I use 75% of it toward debt and/or ef and splurge with 25% of it....because it has we have been struggling financially for so long and we do need to have occasional treats and entertainment.

What would you do?

by on Jun. 14, 2014 at 8:03 PM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-10):
by on Jun. 14, 2014 at 8:06 PM

I'd pay down the credit card debt as soon as possible. I'd even pay that off before putting much into savings, personally - because of the interest. (Maybe not STOP saving altogether, but cut it to get rid of that debt so you can have more to work with in a shorter time.)

by New Member on Jun. 14, 2014 at 8:14 PM

Thanks Claire...I only have a small emergency fund saved, and I am only contributing a small amoun tof my income to my 401K so that I can take advantage of my employer match.

I agree with you about paying off the debt asap...there is just something terrifying/unsettling to me about sending an entire paycheck to the cc company....of course I guess the idea of being 6k in debt is unsettling/terrifying too.

by on Jun. 14, 2014 at 8:16 PM

I'm facing a similar situation myself, after returning to the workforce after 15 1/2 years as a SAHM.  Here is what we can do the same if you want.

I decided on an amount for savings that would make me feel "safe".  I threw all extra money at that, and just reached that goal this week.  Now I plan to put all of the extra money toward credit cards until  they are paid off. 

Splurges:  we went from nothing to $50/every two weeks for dinner out for the family or anything else we want to do. 

Congrats!  Life as a single mom is tough and you're doing well!

by Member on Jun. 14, 2014 at 9:20 PM

You are doing a really good job so far.  Save all of the Aug check as part of your Emergency Fund .  You never know when the car is going to break down or the kids will need something you did not plan on. 

by Bronze Member on Aug. 1, 2014 at 10:46 AM

 I would keep a minimum $2000 emergency fund then drill down that debt.  Personally, I would stop the extra 'savings' and the retirement contributions until I completely paid off my debt.

Your montly budgeting should include a line for school supplies - put aside money each month specifically for things like that.  For example, do you pay your car insurance monthly or 4 times a year?  If you pay it 4 times a year, your monthly budget should break it down to budget the monthly amount.  I budget every month for things like car repair/maintenance.  I might not need it every month but when I do, I've already budgeted for it.  This way your emergency savings is actually for 'emergencies'.

You should also budget for entertainment...even if it's just a little each month - when you hit that amount you feel will cover what you want to do - then you aren't splurging - you have actually budgeted for it.

Dave Ramsey has some good advice "Live like no one else so you can live like no one else."  I also love the website - it's very helpful with learning how to breakdown an annual budget to monthly amounts.

Great job getting to the point where you can do all this!!!  Best of luck to you!


by Member on Aug. 11, 2014 at 9:45 AM
If iy is enough pay off the smallest debt completely, put 100 $ kn yoir play fund and save the rest.
by Silver Member on Sep. 3, 2014 at 9:33 AM

How big is your emergency fund?  If I had a basic emergency fund, I would go ahead and do #1, because the faster you get that paid down, the faster you can roll that money a). into any other debts until they are gone, b). into savings for a fully funded emergency fund, and c). for retirement, college, etc.

by on Sep. 3, 2014 at 9:43 AM

Another vote for emergency fund!

by on Sep. 3, 2014 at 1:23 PM

 I would build an emergency fund

by Silver Member on Sep. 3, 2014 at 3:55 PM

 pay off debt. Get rid of that in terest.

Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)