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re: Debt Free! -- now what?

Posted on 6/10/16 at 8:41 am to
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89621 posts
Posted on 6/10/16 at 8:41 am to
quote:

Feel like I should build my emergency fund up some more and start saving up for something...maybe a house in the future or something, hell I don't know I want to do now. The only goal I had originally was get out of debt


Well - if you're not following Dave Ramsey's plan, he would still be proud of you. I would suggest a fund of 3 to 6 months expenses (Baby Step 3 - you've already completed 1 and 2) - then get to 15% savings rate for retirement (exclusive of any company match). You should be preparing to purchase a home, but if you're single and flexible about future work plans (are willing to relocate within the next 5 years if the right opportunity comes along), then you can hold off on buying a house.

In lieu of that, I would stack cash and get some reasonable return on it - because even if you qualify for a no/low money down loan, there are closing costs and you want to avoid PMI if at all possible.

But, enjoy the debt free moment for a little while - you've achieved something many Americans simply cannot imagine.
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