Exciting news: no more car payments! That’s right my car loan has been paid off. And its time to start enjoying life after debt.
It’s time to slay the dragon: my last car payment is here!
I am excited to send in the double payment this month which will be MY LAST CAR Payment.
At about $750 a month, transportation ranks just after housing as the largest expense for the average American household, according to the Bureau of Labor Statistics. For married couples with children, it makes up 17.3% of their monthly expenditures, while housing comprises 31.8%
In financial terms, there is a double loss involved in an auto loan. We borrow money (and pay interest) on an asset that is guaranteed to lose value. Auto loans are quick sand for the middle class. So, I am very excited to escape.
That’s right- Next month I will have no car payment. No bill. Nada. I am Debt free. That sounds good. I feel so much lighter.
Once I cut out some of the fluff from my budget, the math just began to work in my favor. I began to feel like I was making serious progress in paying down debt, instead of fighting gravity. But, it was a lot of work. I canceled my storage locker, changed my gym membership, negotiated discounts with the companies I wanted to keep.
I feel good and now its time to focus on investing. Now, comes the part where I keep and invest more of my income. Save much more, keep investing, and cut up some credit cards.
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Debit Cards vs Credit Cards:
I now have two debit cards and I like using them. There is a psychological game we play when using credit cards. It’s like we get to delay the bill for a month. It doesn’t feel like we’re spending money. Yes, they have done psychological studies on this. I am going to see if I spend less with my debit cards over the next few months. When I use them, I know the money will be gone immediately. So, I think I should spend less.
Battling Wants vs. Needs:
I’m still battling the wants vs needs issue. I bought some dumb stuff last year. And I’m really accustomed to buying whatever I want, whenever I want.
For example- I am trying to get back into shape and I’ve been preparing more healthy meals. So, I’ve been buying cooking equipment that I want. I rationalize that I need these items like measuring spoons, flour, bowls, pans, a rice cooker, etc… But, sometimes I buy things I need and they sit on the counter! I have to admit that I still have not used the rice cooker. UGH.
I’m thinking of rewarding myself with a very inexpensive drone (less than $40) to celebrate my last car payment. What do you think?
Feel free to share your thoughts and comments on your debt free journey.
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