Friday, May 28, 2010

Changing Gears!

June is coming up quickly. It’s time for me to review and see how much debt I have exactly. Now this doesn’t include any interest on the loans. (That accumulates daily and is difficult to keep up on.) I should have done this last month to see how much exactly of the principle is getting paid month to month. It would have given me a better idea as to how long this process was going to take.

This month the grand total comes in at slightly over $47,000! So I under estimated when I first posted my total. *sigh* Ah well. It’s good to know exactly where you are. On the bright side I’m two months ahead on paying for one loan. I’m not going to stop. I’ll just keep paying as always so if an emergency comes up I’ll have some cash to spare.

On another note I’m shifting my focus to saving as much as I can. I have an emergency fund, but the car inspection is coming up. Last year I paid out about $1500 to have it all fixed up. Now there are more problems with it including: shaking when breaking at specific speeds (something warped again it’s happened before), slightly squealing when breaking at slow speeds (something needs oil or it’s just a little rusted) and the power steering is gone (I got fresh fluid last summer, maybe there is a leak). So um . . . yeah. I’m saving for the car inspection half afraid that it will wipe out the savings entirely if I don’t.

Why do I keep a car that cost me so much to get inspected?

1. I own the car free and clear. I bought it for $1000 as a collage student. At the time I had decided that there was no point in me getting a car with car payments to make every month. I was a ‘broke’ college student. I had also decided not to get into more debt.

2. Because I own the car my insurance is that much less expensive. I don’t have to pay out extra because I might end up in an accident where the car is wrecked and have an outstanding balance to pay.

3. I’ve now had the car for 4 years and have paid out a total of about $4000. (I have all the records.) That includes the $1500. Some of its just normal wear and tear no matter what car you get. You’re going to have to pay something for it. The amount also includes brand new tires for the car. Averaged out $1000/year isn’t bad for a car as old as this.

4. I can’t afford to buy another car free and clear with the money I have now. Not at least getting one that does not cost as much to fix and needs this much up keep.

5. I also get satisfaction of knowing my car is probably at the point where its value can’t go much lower. A quick check of blue book value puts it at less than $500.

6. She may need a paint job and have a few rust spots, but I love Lizy the Luminia, as I have dubbed her. Mom gets a kick out of the name and calls her Tin Lizy.

If by chance Lizy doesn’t bankrupt me I’ll use the extra money I saved and pay off more debt. In the mean time I’m all for fixing Lizy.

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