I’m So Conflicted

Remember how I planned to spend my tax return money? If you don’t read that entry. Anyway so I followed the plan and I reduced my debt while saving $3,000 for emergencies. That should cover about 1.5 months of expenses. Experts say that you need a minimum of 6 months with 8-12 months being ideal in this economy. But I digress. I am pretty conflicted over what I should do.

Should I save this 3K sitting in the bank earning pennies of interest in case of a rainy day or should I use some of that money to pay down my debts? I could pay off the personal loan and reduce the balance of my car note by half but I would have nothing to fall back on. My palms are itching to at least pay off the personal loan but I would reduce my savings by a half-month of expenses. I don’t know what to do. Any thoughts anyone? Reply or email me cheapskate{at}yesiamcheap{DOT}com. I have to write it that way so that spambots don’t get me.