quote:
Will be totally debt free in about three weeks. Where to put extra $?Year end bonus at the end of Jan will afford me to pay off every bit of debt I have. I have heard I should keep very small balances on credit cards and use them once a month just to show activity. Is that true?

I wouldn't leave a balance on it. Pay off the card and just use it to buy gas once a month. If it's a rewards card I would use it for all purchases and pay off in full at the end of the month (what me and the wife currently do). That's if you are good with money and have self control.

quote:
But, the main reason I'm posting is that I will have about 2k extra every month over and above what I'm currently saving (10% of my check goes into savings every payday). I want to custom build a house in about 3 years so I was thinking of going ahead and buying land. Is that a good idea or should I sock the money away and a few years down the road buy land and start to build?

Depends. If you find a good piece of land for a good price and are certain on the area then go for it. But don't just buy land now because you want to build a house in a few years.

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Posted by htownjeep

Republic of Texas

Member since Jun 2005

7613 posts

Posted on 1/8/13 at 10:20 am to SLafourche07

quote:
If you find a good piece of land for a good price and are certain on the area then go for it. But don't just buy land now because you want to build a house in a few years.

Yeah, that's the thing. There are some up and coming neighborhoods where I want to build. I'd have to buy two lots to have it how I want it. But the rub is what if things change in 3 yrs? Job, the area, etc. It might just be smarter to wait. But then again, if it's all good in 3 years then I'll be kicking myself because I could have the land paid off and only worry about the $ for the house.

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Posted by buddhavista

Member since Jul 2012

3543 posts

Posted on 1/8/13 at 4:49 pm to SLafourche07

quote:
I wouldn't leave a balance on it. Pay off the card and just use it to buy gas once a month. If it's a rewards card I would use it for all purchases and pay off in full at the end of the month (what me and the wife currently do). That's if you are good with money and have self control.

Definitely keep the credit card, worse cases its nice to have for emergencies or large purchases. I was debt free for 7 years until december, when I purchased a new car. I only did this b.c to get the bonus cash you had to finance. I will pay it off in the next few weeks.

its a great feeling and congrats.