Re: Counting chickens/how much EF before paying car
Princess P- I ran into this question when we started trying to get out of debt and decided we would do BOTH concurrently. Worked for us.
It doesn't have to be a 50/50 split either. At first we did 80% to EF - 20% car loans with the extra money we had to play with above the normal payments. And after there was about 2500.00 in the EF then we went to 70-30 until there was 3000.00 in EF. You have to understand that at that time any extra we had to do with was very minimal so it took a bit of time to build it up and then slowly over time things eased up and then we went to 50/50 for a time, then 40-60, 30-70, 20-80, 10EF-90cars and then finally all of it was going to the car paydowns - and we had two hefty car loans to begin with. NOW about four years later - both cars are paid off and new cars bought with cash AND there is a hefty EF. It does take a bit of time depending on the income you have but it is definitely do-able.
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