Thursday, 10 December 2015

One Last Urgent Bill

I have been doing some budgeting and trying to determine my future plans. What to save, and when to refinance my truck and trailer loan. 

I signed up for a credit monitoring service, mainly to see how my credit score is doing. I always decided that this would determine when I would go in and refinance. 

Well, I am now well entrenched in the Excellent credit score range, and it seems that I am in a position to refinance.  I am taking a moment to pause and wonder if now really is the right time to refinance.

Sure, I have my credit cards paid off and am maintaining a $1K balance in my account at all times. As far as fiscal reserves go, that’s it, after that it’s back to the bank overdraft and credit cards; then I‘m back where I was two years ago. 

I have decided that I need to maintain the status quo until one final bill is paid, the one to me, as in that contingency fund. I will wait before refinancing my loans (and cranking up those payments) until I have achieved that goal of having $6K in my savings account, as my medium term savings/contingency fund. 

This way, if a small emergency happens, I can take care of it with that and not use my credit cards. I will still use the credit cards as a convenience but I will pay them off every time I get paid, as I do now. 

I have been in Survival Mode and then in Conserving Mode for so long that I have forgotten to plan ahead for the possible curve balls that life throws at you. This is a necessary bill that needs to be paid, if I don’t I will risk undoing everything that I have worked for these past two years.

I will still refinance and I will still buy that new laptop, and yes I will splurge and buy a fancy top of the line one, because I want it and have earned it. 

I will do those things after I have paid myself, and in so doing, give myself that piece of mind that I need. Then I will work on building my savings up while paying off my truck and trailer in a timely manner.

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