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Challenges and updates

February 25th, 2014 at 12:29 pm

Week 8 52-week Saving Challenge: $21. Now that Sochi Saving Challenge is done with I can save amounts greater than $20 per week.

Don Cherry Quietly Reflects on Sochi

So with my Sochi money I'm buying exercise gear: stretchy pants and perhaps a monthly pass to a swimming pool or community centre gym.

A not quite bold move: put $4 to HELOC balance, $12 to Car Loan for first pay period of Debt Acceleration. The only people who don't dislike five-digit debt balances are the people who've recently slid down from six-figure debt balances. This should save me a solid three cents in interest.

The woman who neglects her neurotic, large loud dogs (hint: one of them is an attention-hungry breed that requires exercise) is moving. YAY YAY YAY!

Son is noticing rise in precious metals. He's very good at reporting expenditures that I may otherwise have missed. Now that silver is rising he wants some.

What to do with tax refund? My options:
Put $1155 into Money Market Account to sextuple the interest I'm getting currently, then liquidate a CD to put toward debt;

Put $1135 - $1200 in any combination toward the HELOC and Car Loan. No move will give me the instant high of dropping down to four figures; refinancing the car isn't going to bring the monthly amount down.

Remainder will go to us, to be used for Boy Achievement Adventures, Emerging from Man Cave Adventures, and Geek Girl Undertakings.

4 Responses to “Challenges and updates”

  1. snafu Says:

    While I don't think I'm reading your sidebar correctly, I wonder if you categorize your CDs and MM account as EF? Do you regularly use a debt calculator to see your options when you work with debt figures from highest interest to lowest interest rates excluding mortgage? If your Tax refund is substantial, would it be practical to change withholdings? How do you plan to use 'snowflakes' that come your way 2014? I've likely missed the information.

  2. PauletteGoddard Says:

    Hi snafu!
    I categorize my MMA, Savings, and CDs as Emergency Fund. I used the website creditcardfree suggested, WhatsTheCost.com, and regularly consult the Excel-version loan calculators on my hard drive. The WhatsTheCost one doesn't factor the term limit of my vehicle loan. Yet I can pay my vehicle off by October 2017 (within five year term) if I pay only $37 extra toward the debt without liquidating any emergency fund.

    The Emergency Fund total of MMA, Savings and CD is currently $1280 above the principal of my car loan, and probably $1250 above the payoff amount.

    When I look at the two debt figures from highest to lowest interest, excluding mortgage, I am in a quandary. The difference of 3% HELOC and 2.74% car loan is small, and one's amortized for 25 years, and another for 60 months. If I pay off the HELOC, I have $100 more a month; if I pay off the car loan I have $280 more a month. The difference in interest between paying the highest interest loan first or the highest balance loan first is eight dollars, according to WhatsTheCost.

  3. snafu Says:

    I sure read it wrong. How did you decide to use your tax refund?

  4. PauletteGoddard Says:

    Everything is still up in the air. This is the plan so far for 1/3 of the refund:
    1. Summer camp for DS, 1 week.
    2. Raspberry Pi.
    3. Something to save us money in the long run, maybe renew Costco membership.
    4. Furniture fund.
    5. DVD rental 10-pack.
    6. Community radio donations.
    7. School fundraising contribution.
    8. One good meal out!
    9. License renewals for car, motorcycle, animals.

    2/3 of the refund:
    I suppose the remainder can go into the Money Market fund, maybe one $500 CD for a 12-17 month rate; and automated monthly principal payments 10% of what we pay can go into the Car Loan and HELOC until each balance is below $10000.

    Snowflakes are divided:
    1/5 for investing;
    1/5 for emergency fund;
    1/5 fun;
    1/5 Car Loan;
    1/5 HELOC.

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