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Beachboo07 OP t1_j6krqwh wrote

Reply to comment by ct-yankee in As a first time renter, is my budget realistic? by Beachboo07

Thanks so much! I do want to contribute again this year, I was just thinking that after moving out I want to have all the money possible in case of any emergency. I will contribute again at some point soon.

I not familiar with what you’re saying in that second paragraph …. How would that free up my income more?

I agree the zero-based budget is going to help me a lot. I’m going to start that this month so I can get a feel of my exact ranges. I think knowing this will ease my anxiety a lot lol.

Once I reach my 20k emergency fund, I’m going to start some sinking funds to focus on! I lucky and my dad helps with those things, but I still think it’s important to have that just in case

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ct-yankee t1_j6mxmwo wrote

>I not familiar with what you’re saying in that second paragraph …. How would that free up my income more?

If you have money sitting in a brokerage, and there is enough to finish your emergency fund and/or pay off a loan you have, then you will have more income that would have been going to build the emergency fund, or going to that loan, that you could deploy elsewhere.

In short, fewer of your incoming dollars would have a "job" when the emergency fund is done and the loan is gone. That is then free capacity.

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Beachboo07 OP t1_j6nj7dw wrote

Ah that makes more sense, thank you! I’m excited for this stupid loan to be gone .. it’s going to be such a relief. I can’t imagine how much I’ll be able to improve my finances when I can allocate that $500 a month to something else.

Thank you for your help on all of this I appreciate it a lot!

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