How to handle large upcoming expense?
There's a wedding in the family and I'm a bridesmaid! I'm stoked--but now that I'm using YNAB (for a few months now), I'm thinking about the expense. This wedding is out-of-state. I've weighed my options, and driving appears to be the best bet.
Pet sitting, gas, airbnb, and other costs included, I need to chalk up about $2,700 in the next 7 weeks...YIKES! 🎉
I've been working to pay off debt with about $20k to go, I'm putting that on pause until I can cover this expense. In the meantime, I've been working to build my true expenses, and it would be so sad to take money out of those categories because, well, that's how I ended up with debt to begin with!
The wedding is end of September. I have September's bills partially funded. I'll need to set aside October's bills before the trip, as they mostly fall on October 01. Anticipated paychecks minus September/October expenses, not counting the wedding, I'll have very little wiggle room.
I dread the thought of adding to the CC debt I've been working to pay off. I dread even more the thought of stealing from my savings (I just reached 1 month expenses + $500 emergency fund). Any advice?
Thought I should add, if I take the full amount out of my existing savings, I'll have about $1,200 left in savings.
What is the current job of the money in your savings account? Are those jobs of higher or lower priority than the wedding? When are the time lines on those jobs? Can they be delayed?
Some will say it is better to use savings first in any case instead of debt. Because normally the debt costs you more money (interests) than the savings gain you. You may end up with the same debt at the end if the jobs of the savings were just as important and can't be delayed but you may also not. You may decide to forgo some expenses because your savings pot is down.
And don't forget the gift! 🎉
While I’m sure it’s not the largest expense, is there any option to bring your pet(s) if the Airbnb allows? It may be more trouble than it’s worth, but if your pet(s) are OK to stay alone for most of the day, you could try to take them out during any downtime. Do you have a plus-one or could you add a plus-one to split the costs, if you haven’t already factored that in?
As painful as it is, I would pull from the savings before tacking on added credit card debt—especially if you’re putting your debt repayment on pause until after the wedding. Like you said you’d still have $1,200 left in savings, which is a decent chunk in the event of a true emergency. And with less debt, you’ll be able to repay your savings in due time.