#027 — Don’t Laugh, It’s Paid For!
We paid off our car!
It is definitely tough economic times out there for everyone, so I wanted to share a bit of positive news on the home front.
While the Lovely Miss H has permanent employment, I have been working in project-based, temporary employment. The bad news is that it is temporary. The good news is I can work nearly as many hours as I want. So the past few months I’ve worked a lot of hours. I finally figured out how much we had spent compared to our February budget, and the surplus was enough to finish paying off my wife’s car, a 2004 Saab 9-3. I just logged off of an internet chat with a bank representative confirming we had paid in full, and that the title will be mailed within 10 business days!
Consumer debt is gone
Just want to send a small thank you to Dave Ramsey and his debt snowball methodology. Yes, there may be mathematical flaws within a particular snowball of debt, but the psychology of “quick wins” in reducing debt cannot be denied, particularly when you’re married and you need two people to consent to a financial plan!
After 26 months, through full employment & layoffs, over-spending & saving, emergencies & good times, our consumer debt is now gone. We haven’t been the best at paying down our bills, but we remained true to the overall goals & financial principles.
So now you’re rich, right?
No, far from it! We’ve got so much educational debt, that I think our student loans took out student loans. A married couple both going through college and grad school without a financial plan will do that to you!
Our next step is to build up an Emergency Fund to a reasonable level. My car has 185,000 miles on it, hers is over 100,000. We both commute about 75 miles round-trip each day. We will need those replaced at some point, so I’d like to be ready with enough money to pay cash for our vehicles. Now that our vehicles are paid off though, it makes me want to drive my lovely 2000 Nissan Maxima until it dies. Instead of impressing people with a nice car, I’ll be impressing myself with how long this car can stay around. This shift in thinking is much easier on the pocketbook.
The Journey Continues
There are always hiccups, bumps, and bruises along the way, but we will enjoy this minor victory, and use it as motivation to keep focused on our long-term goals.
photo by dreamweaver1619