0) if you get laid off and can't pay your rent, it's better to have a late credit card payment than to miss a rent payment. Switch "laid off" with "have a big unexpected payment to make".
1) peace of mind (see 0, but more for the worry, not the actual outcome. If I don't have the "just in case" funds it affects me a lot, and there is "back burner" space devoted to my worrying)
2) keeping the habit of always saving no matter what is a good thing. Most folks don't start saving because they think they *can't* save, they don't have enough to. And/or they sabotage themselves by taking out of savings to pay a bill. I struggled with the "right amount" to save for a long time before I found my own sweet spot wrt this.
3) Your credit score increases more if you make payments that are more than the minimum but less than the whole thing. Credit card companies will increase your credit card score if you spend $1000, and make 4 payments of $275 (the extra $25 per month is for finance charges/interest) than if you just pay it off in a lump sum.
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timeasmymeasure
Re: Your thoughts? (just curious)
Date: 2008-12-29 08:16 pm (UTC)0) if you get laid off and can't pay your rent, it's better to have a late credit card payment than to miss a rent payment. Switch "laid off" with "have a big unexpected payment to make".
1) peace of mind (see 0, but more for the worry, not the actual outcome. If I don't have the "just in case" funds it affects me a lot, and there is "back burner" space devoted to my worrying)
2) keeping the habit of always saving no matter what is a good thing. Most folks don't start saving because they think they *can't* save, they don't have enough to. And/or they sabotage themselves by taking out of savings to pay a bill. I struggled with the "right amount" to save for a long time before I found my own sweet spot wrt this.
3) Your credit score increases more if you make payments that are more than the minimum but less than the whole thing. Credit card companies will increase your credit card score if you spend $1000, and make 4 payments of $275 (the extra $25 per month is for finance charges/interest) than if you just pay it off in a lump sum.