6 thoughts on “When Is It Okay To Pull From Savings?

  1. It’s a personal decision about what qualifies. In our situation, we put aside quite a bit every month and use it to pay tuition for our daughter in one lump sum and get a 5% discount. When we have an “emergency”, we try to find ways to pay for it over time, often using the 12 months 0% financing deals and then suck it up in our spending. In each of the last 2 years, we were able to “finance” almost $10,000 each year in needed large purchases this way. Is that considered drawing on savings? Maybe, but it is likely just semantics.

  2. You’ve read Dave Ramsey (I’m assuming–I saw you mention him a few posts ago). We are doing our debt spiral right now, and we’re struggling with whether or not we should use the savings we built up during our time in Ohio (aah, those $800/month mortgage payment for 2000sqft house days are gone) to pay off our debt. It’s hard to think of having all that savings disappear–but all the money we are putting into debt would then be able to go right back into savings. It’s just the security thing. Needless to say, we’re 3 months into things and we haven’t pulled from it yet. Still trying to decide.

    • You mean the debt snowball? If so, that’s an awesome method! I think you bring up a great point that I didn’t address: is it okay to pull from savings to pay off debt? Future blog post! I think yes, but I understand your reservations. I think is just a matter of whether or not your debts have interest attached…

  3. Pingback: BOE And Savings Replenishment Update | Knuckles & Twine

  4. Pingback: Summer Saving Tips | Knuckles & Twine

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