What Would Make Me Feel More Powerful?

Greetings from cyberspace!  Happy Friday!!!  It finally got here.  It's payday or what I lovingly call, Debt Management Day!  Mysti at Digging Out of Our Mess was posing the question today of whether to pay back a charge she put on a card that had or put a snowball payment on a different card that has a higher interest rate.  The general consensus was to make the snowball payment.  However, I have a different take on it.  Some time ago I was watching the episode in which Suze Orman awarded Emergency Fund Sweepstakes winner (Which was not me.. sniff sniff) $10,000.  Before she brought the lucky lad on to the show, Suze provided some interesting advice.  Let's say that you received sizable amount of money, via an inheritance, winnings, a bonus, or in Mysti's case, a reimbursement.  What should you do with it?  Here are the highlights.

1. Put the check away in a drawer or something similar so that you can sit on it while you do the following.
2. Pull out all your financial information and figure out where you stand.
3. If you haven't already, make a 'What If' list.  This list should contain specific items you would do if you get a large sum of money.
4. Look at that list and determine what would make you feel more powerful.
5. Deposit the check and then take that action.

I like this.  I have thought about this and took it a bit further and broke it down into five categories.

What if I had an extra $200 - $1,000?

I would apply some towards my Murphy Fund.  I still believe in Dave Ramsey's TMMO.  One needs an emergency fund for things like car repairs and those true emergencies.  If the Murphy Fund was complete, I would apply the rest towards my Capital One debt, starting with the smaller of the two.  As you know, Capital One is my mortal enemy, known as Darth CapOne.

What if I had an extra $1,000 - $2,500?

If the Murphy Fund is not full, then it would get fed. Then I would attack Darth CapOne, and if there was anything left, PMSI would be next on my hit list.  And why PMSI?  Again, it comes to what would make me feel powerful.

What if I had an extra $2,500 - $5,000?

Again, I start with Murphy (hey, he will always be first!).  Then to possibly killing Darth CapOne (because collectively I owe is less than $5,000) and hopefully PMSI (ahhh... would be nice!).  If there is any left, I will tackle the retail store cards, as they have the highest interest.  Again, it is all about empowerment.

What if I had an extra $5,000 - $10,000?

Murphy - Done.  DarthCapOne - DEAD!!!! (and crowd roars with joyous rapture) PMSI - Becoming a distant memory.. Retail cards.... watch out....

What if I had an extra $10,000 or more?

Murphy - Comfortably full.  DarthCapOne - DEAD and BURNED!!!! (may you rot in Hades) PMSI - Ancient History.. Retail cards.... going out of business... DarthHBSC... bring it... it is so on... Car Loan ... I'll see you at the finish line.

Ahhh... To Dream is To Live.. But that is what I would do.