Invest or Save?

Ok, I’m still a little bit uncomfortable with saying how much debt I have but I will disclose this information once I pay 50%.  But I can say that as of yesterday, I have paid about 20% of it off! So to recap, my initial plan after calling the credit card companies to request a reduction on my interest rate was this:

  1. I divide my total balance from the furniture store by 6 and started paying that amount monthly.  I put all other cards on autopay until I was done.
  2. Shift the amount I was paying towards the previous credit card to the card I used at Bestbuy. Keep the other credit card on autopay.
  3. The last card is the biggest and the baddest 😦. Increase the amount being paid towards this card once the first two cards have been paid off.    Pay off this card by early next year two months shy of the end of my interest free year.

Here’s what has actually happened.

  1. Furniture store card: Paid in full
  2. Best Buy: $180 remaining but with more than 6 months of 0% interest remaining.  Decided I will just pay the minimum on this one because its such a low amount and does not have interest.
  3. Big bad credit card: 20% paid off with an additional $2000 going towards it this month.

My plan seems to be working well and the fact that everything is more or less going as scheduled has allowed me to think about other financial goals that I’d like to accomplish.  There are two things currently on my agenda, investing and saving.  I think this is something people gripe with at this point in their financial journey. I want to invest in real estate asap for the following reasons:

1.The Fed will raise interest rates soon and make buying property more expensive.

2. Prices in the DC area are rising fast as there are less and less properties put up for sale.

3. Attention has shifted towards the neighborhood I’d like to invest in since the local government decided to improve the public transport system.

But then I also have equally compelling reasons to save money. Namely:

  1. My emergency fund is very low.
  2. I’m starting to hate my job and would like the option to resign soon.
  3. I’m in school and afraid that my financial aid will not be able to cover the total cost.  And I will not go back to Sallie Mae, EVER.

Should I miss out on a really great opportunity to get income property and possibly increase my income by a significant amount or should I continue to live on the edge working a job I hate?

It might be premature to have these thoughts at this point as I’m still digging myself out, but I’m a planner and I want to anticipate things that will arise in the near future as far ahead as possible.



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