As I mentioned in yesterday's post, the company that Pa works for is lowering their 401k match.
So the question was - what to do with that other 4%?
Pa and I discussed it a bit, but we each had a different idea - we just weren't sure. We don't have to decide for a couple weeks as they are matching up to 8% until April 1st, but we wanted to be ready and confident to make a change at that point.
But to what? I feel that both of our thoughts had good reasoning, so we were left with - which was the smartest choice? So I emailed Mary, the author of the Debt-Proof Living book that we favor, and I asked for her help with the answer. To...
A. Keep it where it is, regardless
B. Move that 4% to the debt load
C. Start an IRA
Mary responded very quickly - I was tickled. Mary said, without hesitation....
D. Use that money to continue to build the Contingency Fund if that's not fully funded (6 months pay)
Because that's crucial - more so now than ever with so many around us losing their jobs - it very easily could be us next. We need to be prepared. And IF that is fully funded, then use that 4% to pay down the unsecured debt.
It's good to have a plan. Thank you Mary.