Sinking Networth
It is that time of year again. The time when spending is at full speed. It starts early Spring and just steadily increases paces until it blasts apart in early September. I believe August & September to be, historically, our most costly months. Well surpassing Christmas, if you can believe that.
As I helplessly watch our networth decline, I am trying to see the positive. The biggest positive, we have money in the bank for these annual bills.
I did not move any money to retirement or savings this month. In fact, besides my Residual Stream Creation, I saved nothing.
The main reason for no savings transfer - I received the bill for the new A/C unit at the commercial property. At just over $3500, it cleared out our paychecks from the checking account.
The good news - we didn't finance this purchase.
The bad news is after vacation and our regular expenses we are sitting at $4005 on credit cards, $3510 on the line for college (with more to come), and $10,304 to be paid in property taxes in 2 weeks.
The plan - I will be transferring funds from both ING & HSBC savings accounts to cover these bills. I'm trying to determine how to get the most interest and avoid the most paying of interest. Although, I do not have the strength to run to the last minute. Most likely I will initiate transfers by Monday of next week.
I have $2066 due to me receivables at this moment for some of the debt above. Hopefully, I will have these dollars in my account by early September. That will leave me with $15753 or so to pay.
My first transfer will come from ING for $7400 (My goal to leave a balance that earns me a penny a day - just because). This will mean I need $15753 -7400 = $8353 more to pay in full.
Which means I will head to HSBC and transfer out $6570. I want to leave a bit over my last estimate tax payment needed in January. $8353 - $6570 = $1783 will be the left over damage.
If it wasn't for that a/c dying I would have made it, even with vacation. :-)
I estimated another $2400 on the N.C. vacation coming up. I now estimate about $3000 more in college payments this month. Leaving us with a debt load of $7183. Since we were pushing $30k last year at this time, this seems minor. Plus, we will have taken 2 vacations. Yay! WE are moving forward!
Even after rolling the ZERO percents back into the line, if I can't find another quality Zero Percent opp, we would still be better off. Without making anymore payments to the Zero Percenters (which we will), rolling it all in we would have an LOC balance of $23,131.
I know for a fact the one Zero % card will be paid in full prior to time running out. I also know for a fact, that we will continue to make payments on the other until time ticks away. Which will decrease the above to $19,815.
Maintaining a minimum of $1k payments a month on the line until the roll into time, the balance at roll time will be $16,815.
I should be able to squeeze another $850 a month from our income into this debt each month. Yet, I find it is best to not hold my breath. Tenant's could bounce checks, things break, life is a circle of unexpected events.
I do know that I will push all dollars I can to this debt prior to the election. We all know the Federal Reserve will raise rates when our New Democratic President wins office.
3 comments:
Those are huge expenses!
I hear you about expenses taking full speed in the summer months heading into September. The only problem with us is that it continues until 12/31. We are very mindful of this and HOPEFULLY we'll get to the end of December with no new cc debt.
Hang in there, you are doing great!
Are you going back to college? Or are you paying for your kids?
Sharon - thanks for the pat on the back. It's almost out of my hands. :-)
Dogatemyfinances - Kids :-( 15 more years to pay for. Thanks to our rather large family. 5 paid in full! We are a 1/4 of the way there!
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