Friday, 23 September 2016

Paydown Plans Progressing

So, earlier this week I moved the money that I had in my Long-Term Savings over to my Mid-Term Savings. Why?

Simple, since I am planning to pay the truck off next payday (exactly two weeks from today) I needed that cash to be accessible.

My Long-Term Savings is not a regular bank account, so it can take a few days to get the cash out of, or so I was told. 

This was the first time that I had withdrawn anything from it, so I wanted to know exactly how long and what surprise limits there were on withdrawals.

For example, what if there was a certain dollar amount limit combined with a certain number of days mandated waiting time in between withdrawals? 

I hate surprises, so I decided to make my withdrawal early since this was my first time. It worked fine and all in all it took just over one business day to complete. 

In the future I will allow at least two full business days for any withdrawal to take place. At least I know what to expect for next time (as in when I pay off Wanda).

This means, however, with that cash in my Mid-Term Savings I was able to factor that into my budget for the upcoming payday.

With real numbers on a real budget I was able to work it so that I could not only pay off the truck but do so without decimating my fiscal reserves (in the Mid-Term Savings).

I have decided to just keep my Mid-Term Savings at its minimum acceptable $1k level. I came to this conclusion after my thoughts were to trickle fund this back up to my previous target of $2K.

I had originally intended to put cash in there and steadily draw down on that account by transferring it over to the main account when my budget needed to be topped up. 

That way my savings plan of $1500.00 per payday would remain on track and operating like clockwork. I have decided on a slightly less ridged plan. 

After paying the Low-Interest Credit Card off by Nov 7th I will just move on ahead with my savings plan, one payday early. 

My target will still be $1500.00 per payday going up into savings. If I just can’t do it, I will not fret, because I know that there will be other paydays when I can put in a bit extra. 

Hopefully I will still be able to make the day of Total Debt Freedom Day on Nov 7, 2017. 

It would be nice to be able to pay things off earlier, but I will not fret, even if I somehow had to push the day back a payday or two.

The important thing is to save and to get debt free, target dates are nice, but in the end, they are just another day . . . no matter how momentous they may seem.

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

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