Thursday, 2 February 2017

Wanda Paydown Update

So, so far this plan to pay the Wanda Loan down by giving fistfuls of cash directly to the banks each payday is working, rather well in fact (despite how counterintuitive this is for me).

I have a spreadsheet (okay, two: one for the official record, and one to estimate the future) which helps me to keep track of how things are going on the Wanda Loan Paydown Plan.

One of the key metrics is how much of a bite each payment takes out of the principle. Well, that is the interesting thing to report today.

Today was not just any Thursday, but a Regular Wanda Payment Thursday! Since the regular payment went through today, I can see how much the principle dropped.

This means that I can measure just what effect my large payments are having on those regular payments.

Well, before I made these large payments that bite out of the principle increased by $0.10. It was like clockwork, the amount that came off of the principle increased by ten cents.

After the first large payment, that amount of difference jumped up by (in comparison) a whopping $2.23! I figured that this was likely some sort of anomaly and disregarded it.

This time, after the next large payment, that amount of difference increased by $3.10! That’s huge and in a way, using this whole compound interest thing, to my advantage.

It is now possible to predict that these jumps will increase in a similarly startling fashion. After a few I may even see a pattern and predict just how much these increases will increase by.

The lesson today kids, is to pay as much as you can as often as you can on any Loan, in order to kill it faster. Wow, I should have done this on the Truck loan. 

As always: keep your head up, your attitude positive, and keep moving forward!

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