Thursday, 4 May 2017

I Don’t Like Working Without a Net

It’s funny, for most of my working life I have not had any kind of savings account. I have always been the paycheque to paycheque type. 

Now that I have had a taste of having a bit of a savings account building up, I like the thought of having that safety net, even for a short bit.

The past week or so at work has been a bit slow and since we are not a governmental organization and are a business, in fact a small business, this is not good.

One’s thoughts turn to what would happen if Boss decides, or has to, either downsize or shut the company down. While this is not likely, it is, of course, a possibility. 

With my current plan of handing most of my paycheque right to the bank, my cash reserves are quite low. 

If something were to happen now as in if I was “actively encouraged to seek other employment opportunities” even through no fault of my own, I would be in a tight bind.

So this is why I have decided to shift gears, I will still pay off the Wanda Loan by October the 22nd and pay my truck and trailer insurance up front.

What will change is that now I will put three quarters (¾) of what I was handing to the banks in my Long-Term Savings Account. I will put one quarter (¼) of that payment still directly onto the Wanda Loan.

A few days before October 22, I will drain the Long-Term Savings Account (along with my other fiscal reserves) and pay the Wanda Loan off. 

This will let me have a fiscal cushion and make large payments on the Wanda Loan. The best of both worlds as it were. I will not touch the money, but have it on hand, just in case.

This is a good balance and since the outstanding balance of the loan has been knocked down considerably, there is not much difference either way, with regards to the best way to pay off the loan.

I have modelled what will happen either way and noticed there was not much difference between the two, with regards to what it will cost me.

With that in mind I went with this and while it may end up costing me a few extra dollars (maybe a hundred, if that) it is worth it for my own piece of mind. 

That and this is the more prudent option. Life is always about constant revision, always tweaking what you are doing in order to make sure that what you are doing is the best possible option, given what you know now, and what the current situation is.

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

No comments:

Post a comment