Tuesday, 17 April 2018

Not Stopping Mid-Term Funding

Okay, so I have said, and I remain, committed to staying Totally Debt Free. I am still committed to that, but I also have said that I will use debt to my advantage, to get ahead.

I have had a couple of recent large expenses, the first of which was my generator, the second of which was maintenance (brakes & oil change) to the truck over the weekend (it is a 2012).

It also looks like Wanda’s batteries will have to be replaced sooner rather than later. They cannot hold a charge more than 2 days, 3 tops (again, they are years old).

With all of these dipping into my meagre savings, I will have nothing to live on, as a cushion, if the worst happens and I am unemployed. 

(I refuse to factor in any sort of government assistance or charity help, as they are never guaranteed, and out of my control.)

So, what I am doing is putting those expenses on my low-interest credit card as I charge ahead to fully fund my Mid-Term Savings Account by July 22 of this year.

At that point I will have 2 years worth of living expenses saved away, as I then focus on paying off that low-interest credit card, before turning my attention to the Long-Term Account.

I already have enough in the Mid-Term Account to pay the card off, but if I spend it now, I will have nothing to live on later. 

(I can stretch a dollar, but I need a dollar to stretch.)

I will still pay $50.00 a payday to the card to service that debt for the next 3 months. I estimate that it will take less than 2 months to pay it off at that time. 

I am already in the position that I will not be ready to buy my property until Spring of 2020. (As in having the Long-Term Account fully funded.)

I need to do this for me, as I need to have that cushion under me. So, I will take advantage of the low-interest credit card to secure my peace of mind.

With all of the uncertainty these days, I need to have some sort of backstop, sooner rather than later. 

I will not let this get out of hand, and I will pay this off, I will just use debt to get ahead. 

Keep in mind that I will always have more in the bank to pay off that card than I will charge up on it. 

With each payday, my savings will continue to dwarf, ever more the outstanding balance on that low interest credit card. 

This is a key and vital difference, between now, and getting myself in trouble years ago. (Remember that kiddos, if you plan on doing a similar move.)

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

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