Tuesday, April 17, 2007

Freedom Fund Saves The Day

As many people in PF blog land have already discovered, having a freedom fund ( a separate savings account for 'expected' expenses ) earmarked for big future purchases can really be a life saver. Since it has been about 18 months since my last vacation, I have finally decided to take the plunge, as it were and book a trip. Of course, there is not really an easy way to pay for a trip like this using cash when booking over the internet. But, since I had money stashed in the Freedom Fund, I was easily able to book the trip. I have now transferred money from my freedom fund over at ING Direct and paid the credit card bill for the trip all well in advance of the arrival of said statement. In the end I will likely pay a few dollars of interest, but that sure beats the regular amount that I would pay if I kept a running balance for the trip over many months like I used to do.

The positive steps that I have taken with my debt have given the monthly budget a lot more wiggle room this year and that makes me feel great. For the first time I am consistently finding that there is enough money to pay bills well in advance every month, even after savings goals are met. This is fantastic.

Furthermore, I have just increased my 401k contribution at work up to 8% (although that almost got messed up and didn't go through for this quarter, much to my dismay), which is going to keep the retirement nest egg extra warm, just the way I like it. Now if only there were a company match......

And now that things are going so well, I am not afraid to improve my lifestyle just a little bit. I've been going out to eat a little bit more and taking a little bit of money and splurging here and there. I try to keep it low key, but I find that doing this once in a while gives me a sense that it is actually worth working this hard.

No comments: