Spending Money From Contract Work
Michael's contract job will run out soon, and he knows it. Should he put his earned money onto the student loan, credit card or emergency fund?
QUESTION: Michael just got a contract job for 12 months. This year, their combined income will be about $160,000. Should he pay off bills in the next 6 months or save for an emergency fund, or something else?
ANSWER: There are 2 ways to do it. You can either pay down on the debt or pay minimum on everything, and very aggressively pile up cash. They day you land your next gig, start your total money makeover and clean out that savings over the student loan and the credit cards. I would pay into savings as intensely as I could, as if I were getting out of debt. When you land your next deal, clean that money out and become debt free that day.