Monday, December 10, 2007

Preparing For Payoff

Things are going really well. In addition to a slow, but sure increase in net worth, things are becoming easier in terms of bills. After some recent calculations, I've determined that there will be enough money in this coming month to completely payoff my car loan. It seems a little premature, but the idea of getting completely out of debt on the car is so exciting I cannot wait to do it.

Last week, I was able to call up and get the payoff amount and I ran the numbers for the checking account and found that I had just about enough in there to cover it. Originally I thought I had more than enough, but it turns out the amount was just right. So now I am in a situation where I need to be able to wait a couple more days, but in about 2 weeks, the loan will be paid off.

But the Real Payoff comes in 2008. For me, the real payoff will be the extra several hundred dollars that I save each month by not having to deal with that bill. The real payoff will be knowing that there is that much less for me to worry about earning. For me, the real payoff is knowing that I will not have to write that check, sending that money to pay interest and principal for an asset that has long been used and continues to depreciate.

I've come to realize that there is a principal that is not talked about much in personal finance. I first noticed this principal in a book by Suze Orman. The idea is that money and energy are related. By putting energy into your finance, you can make your wealth grow. I've noticed this first hand in the past two years. I pour over my statements, I contrive ways to save money, and I focus my energy on paying down debts. The payoff has definitely been worth it. This loan being paid off is just another milestone. Putting time and energy into money in many ways for me, seems like one of the best ways to spend time and energy.

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