Wednesday, 9 November 2016

Stash or Pay?

For the most part I try to be neutral and non-political, yet as a result of last night’s US election I feel I have to say something. 

Rarely does the machinations and plotting of foreign (I am a Canadian and darn proud of it) affects me in the slightest, this one does. 

The President-Elect of the US has vowed to rip up or renegotiate NAFTA, that free trade agreement between the US, Canada and Mexico.

This is bad and bodes ill for the Kingdom of Geffieland, because the company I work for does approximately 80% of our business exporting directly into the US.

Essentially, NAFTA has made our business quite profitable, yet the prosperity does not stop there. We sell to manufacturers, electricians; companies large and small. 

We sell them good quality product at a competitive price, and back that up with advice, knowledge and yes a good, no hassle warranty.  

(I swear this is not a paid plug for the company I work for). 

In essence, we benefit by selling our products to people and companies in the US and in turn they benefit by being able to be more competitive and prosperous using/selling/installing our products. 

(It is a Win-Win-Win-Win-Win-Win) (We win, the manufacturers we buy from win, our customers win and their customers win, and yes even both of the economies of the US and Canada win.)

What the tearing up of NAFTA means for little old me goes back to the question that loomed over me as I started this blog and Urban Nomad Journey . . . 

What if the boss decided to shut down the company or go back to a one-man operation? (He has done this before, before my time.)

What if I find myself suddenly unemployed? 

It may not happen overnight, but it may happen now that the future of NAFTA is uncertain. 

So, the question I face is do I continue with my plan to stuff all extra cash onto the Wanda Loan, or do I stuff the cash into the bank and pay it off when I have enough to do so all at once? 

If I stuff the cash into the bank I then have that cushion of cash in case I am suddenly unemployed. Then again I have been told to rely on Unemployment Insurance, 

History has taught me, however, that UIC is not all that dissimilar to a lottery ticket; it is unsure and not guaranteed.  

I will move forward with my project for the months of December and January, and see from there what to do. 

If it does not look like I will pay the loan off any faster then I will likely bank the cash and hedge my bets. 

If it does look like I will pay the loan off quicker, then I will keep moving forward with my massive payments on the Wanda loan. 

Either way, I need to get that loan paid off as soon as possible, because once I am totally debt free, I can live cheaply and breathe easier, if I was suddenly unemployed.

If any of you need the nudge to do something drastic to eliminate your own debt load, might I suggest that you wonder what would happen to you and y our family if you were to find yourself suddenly unemployed for reasons out of your control?

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

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