Dave Ramsey and other prudent financial folks. I need stimulus check feedback........

[Joanne]

I can't get a new thread to post on Living Like No One Else, I have been trying.

 

Here is my query:

 

I'm using YNAB if that matters. I plan on moving slowly into a buffer as they suggest, but first the BEF (baby emergency fund) and absolutely onto the snowball.

 

We are current on all bills. We have (relatively) modest cc debt, a house, a car payment. No consumer/cc debt is a agreed on value for us. We have not used our cc in....months?

 

I can't post too many specifics due to divorce, custody and legal issues. Please be understanding on that.

 

We are getting our stimulus check this week. It's $600 because of our income level at the time of filing. I've been thinking of using it all for a Kroger gift card so that we can get an additional $60 for groceries. I am very careful and prudent at Kroger for groceries. I thought I might treat the card like a cash envelope.

 

I have 3 children, a husband, 3 dogs, beta fish and a guinea pig. I homeschool additional children during the day and take care of after school kids during the summer and afterschool. The reason I share this is that my grocery budget covers a LOT of mouths, bodies, paper needs, cleaning needs and toiletries. :w00t::001_unsure: I use Angel Food Ministries as my "base" food for menu plans, use coupons combined with sales and clearance at Kroger, and fill in with WalMart. The $600 Kroger plus $60 would "last" a long time - maybe 2 months or so.

 

I realize that another, compelling, option is to use it to fund the BEF by more than half. But I still need to eat and the extra $60 for something I need to spend money on is also an attractive and not unwise choice. Yes?

 

Thoughts?

[Amy loves Bud]

I can't get a new thread to post on Living Like No One Else, I have been trying.

 

Here is my query:

 

I'm using YNAB if that matters. I plan on moving slowly into a buffer as they suggest, but first the BEF (baby emergency fund) and absolutely onto the snowball.

 

We are current on all bills. We have (relatively) modest cc debt, a house, a car payment. No consumer/cc debt is a agreed on value for us. We have not used our cc in....months?

 

I can't post too many specifics due to divorce, custody and legal issues. Please be understanding on that.

 

We are getting our stimulus check this week. It's $600 because of our income level at the time of filing. I've been thinking of using it all for a Kroger gift card so that we can get an additional $60 for groceries. I am very careful and prudent at Kroger for groceries. I thought I might treat the card like a cash envelope.

 

I have 3 children, a husband, 3 dogs, beta fish and a guinea pig. I homeschool additional children during the day and take care of after school kids during the summer and afterschool. The reason I share this is that my grocery budget covers a LOT of mouths, bodies, paper needs, cleaning needs and toiletries. :w00t::001_unsure: I use Angel Food Ministries as my "base" food for menu plans, use coupons combined with sales and clearance at Kroger, and fill in with WalMart. The $600 Kroger plus $60 would "last" a long time - maybe 2 months or so.

 

I realize that another, compelling, option is to use it to fund the BEF by more than half. But I still need to eat and the extra $60 for something I need to spend money on is also an attractive and not unwise choice. Yes?

 

Thoughts?

 

 

Joanne,

 

I think what i would do in your situation is buy the Kroger cards and treat them like cash. Then use your monthly grocery budget to payoff the remaining cc debt or fund the BEF, whichever comes first. Then you get the extra 60 bucks, but still accomplish the other goal. There is nowhere on earth your going to get a 10% return on your money right now, so go for it.

 

We did the same thing - bought gift cards at our local grocery with a 15% bonus. But we are still giving away that amount of money as we had already planned.

 

Hope this helps, and good luck knocking out those steps!

[Julie in CA]

If it were me, I'd use the money for the emergency fund.

The groceries, you've been able to cover up to this point, but it's pretty difficult to get another lump sum to put into the emergency fund. Something else always comes up to use the extra, kwim?

 

I don't think either choice would be "wrong", but sometimes it's worth losing a bit of money (in this case the prospective $60) in order to see yourself on your way to a bigger goal (in this case, the emergency fund that you *will*eventually*need*, hopefully later rather than sooner!)

[jmgconner]

If it were me, I'd use the money for the emergency fund.

The groceries, you've been able to cover up to this point, but it's pretty difficult to get another lump sum to put into the emergency fund. Something else always comes up to use the extra, kwim?

 

I don't think either choice would be "wrong", but sometimes it's worth losing a bit of money (in this case the prospective $60) in order to see yourself on your way to a bigger goal (in this case, the emergency fund that you *will*eventually*need*, hopefully later rather than sooner!)

 

:iagree: For me, it worked to my advantage to follow the 'rules'. It helped me with self-discipline, as well as feeling like I was making progress.

[Old Dominion Heather]

I'd probably use it for the emergency fund. It feels really good to have that money there if you need it.

[Pamela H in Texas]

aw man....I REALLY like the reasoning on the use it for the card, then use grocery money towards BEF. However, I think there are benefits the other way also.

 

Really, I think you can't go wrong.

[tinag]

If it were me, I'd use the money for the emergency fund.

The groceries, you've been able to cover up to this point, but it's pretty difficult to get another lump sum to put into the emergency fund. Something else always comes up to use the extra, kwim?

 

I don't think either choice would be "wrong", but sometimes it's worth losing a bit of money (in this case the prospective $60) in order to see yourself on your way to a bigger goal (in this case, the emergency fund that you *will*eventually*need*, hopefully later rather than sooner!)

 

:iagree: I think it would be nice to know that you are more than half way to your BER. Also, what if a small emergency came up you could get to the money.

[MJN]

best in your situation. I wanted to ask if it would hurt your business if you asked the parents of these homeschoolers and after school children to send food for them or if that is part of what they are paying you for? With the costs of food rising faster than most of our incomes, I just wonder if they'd be understanding and help you out. Just a thought.

[PariSarah]

. . . between eating rice and beans and eating rice OR beans?

 

If you are, definitely get the free $60. Free is good. Guaranteed free is even better. I go to every lunchtime colloquium with a free lunch. Every single one. It makes a difference.

 

But how long, then, would it take for you to put $700 into the EF? Two months? Six? Twelve? A year is a long time to go without an emergency fund for the sake of $60. A month or two, maybe not so much.

 

For myself, no question that I would fund the emergency fund. Mostly because I just got back from using some of mine to pay for Isaac's broken teeth from several months ago. (After several rounds with the insurance company, less than a tenth of the bill is going to be covered.) And I'd just willingly give up a 10% bonus gift to have the more conservative financial position.

 

Like Julie said, I don't think either choice is "wrong." But it seems like you've lived in shaky financial circumstances for *so* long.