I was reading Mom-sense’s blog and it struck a chord with me.
So, I owe $929 on my second car. I haven’t been paying it off. I have been putting the money aside to pay off in one lump sum. Well, I currently have over $12,600 saved and ready to go once I save up the rest.
Unfortunately, I have become quite attached to this $12,600. You see, it was brought a sense of security and safety. I know that the $12,600 well take care of almost any emergency including 3-4 months of being laid off. Especially in these uncertain times.
But alas, this money is not meant for the emergency fund. This money is meant to pay off the second car and help get us out of debt.
Now, the emotions start coming back of a little fear, stress, and anxiety. I’ll be back out there with a flimsy safety net. My wife was feeling the same way I was. Maybe we could keep it and just start saving for the car again.
As long as the fear and anxiety doesn’t rule you, it is good. The fear has caused to take a step back to re-evaluate where we are, where we are going, and what are priorities are. It also has helped to focus what are next steps are and general timeframes around those steps. And lastly, it has made us aware of some of the risks to our plans.
Re-evaluate and affirm – YES!!! Rule us – NO!!!
So in the next few weeks, this money plus another $929 will leave our accounts. What we will be left with is the memories of what it will feel like when we have no more debt.
So I thank you dear friend for helping us, but I must bid you ado in the next few weeks.
Sometimes, it's hard to say goodbye
June 9th, 2008 at 05:24 pm
June 9th, 2008 at 05:46 pm 1213033570
June 9th, 2008 at 05:57 pm 1213034249
June 9th, 2008 at 06:49 pm 1213037376
June 9th, 2008 at 06:53 pm 1213037618
Excellent question. I currently have a 30 year at 5.5% with $344k left. So paying it off seems like an impossible goal, plus I want to invest in real estate. So, what I think I will do is pay it down to a 15 year and then decide whether to continue paying down or what.
Do I want to invest in real estate or do I think I can knock the remaining mortgage out. That's what I am thinking so far.
June 9th, 2008 at 08:49 pm 1213044576
Merch,
I am glad that my post got you thinking! I have been dwelling on the bigger picture lately and am wondering what to do.
We have a 30 year at 5.75% with a balance of 287K (house valued at $510K). Seems impossible to even think about paying that sucker off. We own a rental property outright valued at $330K. I would love to purchase a condo (studios are down to $80K) near the college I'd love my kids to go to. DH and I are up and down on that one. Do we refi and do a cashout to pay outright? Do we save and put a down payment and get a mortgage at a higher rate (because it isn't a primary or secndary residece).
I guess I'll worry about that once all this little stupid debt is gone and my safety net is back.
June 9th, 2008 at 09:08 pm 1213045738
A third option might be to sell the rental, buy the condo outright and may off all but $37k on the mortgage.
But too many ifs right now. Focus and achieve your current goals. But after you got your debt paid off, you should be in a great place.
June 9th, 2008 at 10:54 pm 1213052096
June 10th, 2008 at 12:14 am 1213056845
June 12th, 2008 at 12:29 am 1213230588