Originally Posted by SubliminalDarkness
I think it's in their best interests to hang on to the savings. If something happened to DH's employment(he was laid off, fired, got sick and lost his job, etc.) they would need money to live on. Or if someone ended up in some catastrophic emergency, they'd need money. If some major repair on the house came up, they'd need money. Etc.
Here is our reasoning:
As for the truck note, we're paying $900 in interest TOTAL on the loan over the 3 years of the note, IF we NEVER put anything extra on the payment. We've faithfully put about $50 extra every month on it. So we know we're not really paying quite that much. IF our a/c unit went out (and it's 102 here today - I'm NOT living without A/C) we'd end up having to put that on our credit card (high interest) OR take out a loan for it if we paid off the loan now. Having that money in savings is a safety net. Yes, it's not financially more prosperous for us to have the money in savings vs. paying the debt, but I sleep better at night.
I've cut offerings down $25, Reduced clothing, I've only spent $100 so far in groceries this month.
I'm selling all I can via Craigslist and Ebay - as soon as our savings is up to 10K and we feel perfectly safe there, then everything else we can squeeze from the budget/selling will go straight to the truck.