ahh.. you are a assuming the roof needs to be replaced due to storm or fire damage. the other reason you replace a roof - age. Insurance doesn't cover that. and if you let the roof get too old - and you have a leak that damages your stuff - they might replace the roof but not your stuff or even the other way around.

Just skimming now. I'd say in theory I agree with David's friend, however, not everyone has easy access to cheap credit or knows how to invest wisely. And both make a huge difference in any consideration of what to do with extra money.

Also, seekrit message to David: you have the cutest baby ever!

To get back to Kristin's question. I think with things like that you should always ask yourself, would I choose this situation if presented with it? For example, many people say you shouldn't pay off your mortgage early even if you have extra money because you earn a better return by investing. Well, if you didn't have a mortgage, would you borrow on your house just to invest? Probably not, because of the risk. And that is really the same decision, or should be.

So, if you got a bonus of $5000 tomorrow, would you pay off your credit card, or stick it in a savings account?

So, if you got a bonus of $5000 tomorrow, would you pay off your credit card, or stick it in a savings account?

One grand in the savings account, one grand for the headshots and v/o reel reproductions, three grand on credit cards.

Or possibly all five grand in the savings account until I switch jobs and then the above.

If I got enough to pay all the CC I'd pay them all off, but that is because of what I have in the bank now. Logically, it should follow that if I got less than what I owe I should put it on all the CC to lessen that debt. But I might pay off what I can on the CC minus the amount for the tool we need to make the installation of our floors much easier. ( if we had zero CC balance I'd put the tool on the CC and I could pay it off over two or three pay periods without us feeling it)

Am I the only one who thinks Mike Birbiglia is cute as a button?

Good god. I went to college with him. We did theater together. I....it's weird that people watch him? That he's semi-famous??

Actually several people who were in the improv troupe are doing ridiculously well, I think Allison is on some MTV thing or something, and someone else is doing pretty damn good too. Which is odd, cause the troupe only started my sophomore year.

I'm supposed to have six months living expenses in savings?

AHAHAHAHAHAHAHHAAHAHAHAHHAHAHAHAHAHAHHAHAHAHAHAHAH.

I cannot remember a time when I haven't been entirely without cash for two or three days before pay day. Forytunately, I don't have a credit card. Unfortunately, DH used them rather liberally before he moved in with me.

I'd throw the free money at the highest interest loan I have going. Lather, rinse, repeat.

I'm at the point where I'm finally going to dip into my savings to pay for serious house repairs (5K or more) but so far in this 10 months of severance pay (ended August) and unemployment benefits, I've kept even on my checking account AND current on my CC. Although I went into $13K debt for my school tuition at the same time, but then that is money invested in my future earnings.

I really need to have a better "investment" strategy, but I think I'd better finish school and get a job before I can truly feel it's OK to take my savings and 401K and do something more long-term with them....

I woke up jangly and this conversation has made it 8556 times worse.

Sigh.

Sorry so jangly, Kat.

I think David's friend is talking to people with money. Not necessarily a ton of money, but enough to realistically consider the "6 months savings" advice. I'm just glad I've started putting money in a higher-yield savings account, and this conversation makes me realize I should take the little bit of money out of my stupid regular savings account and do something better with it. For me, that means putting it to credit cards. If I didn't have the credit card debt, I get that investing makes sense for "emergency fund" money.