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raganiI have recently been trying to get a handle on better organizing my money. The arrival of my tax returns the other day was a nice way to tackle some of my debt. I debated for a little while just how I would use it though. Around the same time, I got two car-$ related notices in the mail as well.
One item of mail was the renewal notice for my auto insurance.
Back when I first owned a car, my auto insurance was low enough that I could pay a lump sum every six months (the policy was for half a year). Ever since I got my current car, I have been paying it monthly, and suffering the finance charges without much thought. I really did not have the option to pay the entire amount for the year. When I can afford it I have sent more then the minimum payment in hopes of reducing the finance charges a little. With the extra money in my account from my tax return giving plenty for the entire premium all at once, that seemed like a good place to target.
The other car related mail I received was a notice that my auto loan was about to mature. Oddly, although I have been paying this as a direct-debit from my checking account each month, they wanted the last payment in a check by mail. OK. I have already adjusted for that money to be gone about the same time each month (about the 23rd) so making the payment is not really going to impact the tax return money. I was excited about this being my last payment and did not want to forget it, so, since the tax return money gave me a nice buffer, I sent it in right away.
As soon as they cash that check, I will own my car outright! Weeeee!
Both of these free-up a nice chunk of change that will help me tackle the rest of my debt that much faster.
This feels so much more productive then how I spent my tax return last year when it all went towards the deposit of on the house we are renting. At this point, the rest goes towards credit card purchases I made recently (Wacom tablet, GoLive, a couple of really great jackets at a consignment shop).
One item of mail was the renewal notice for my auto insurance.
Back when I first owned a car, my auto insurance was low enough that I could pay a lump sum every six months (the policy was for half a year). Ever since I got my current car, I have been paying it monthly, and suffering the finance charges without much thought. I really did not have the option to pay the entire amount for the year. When I can afford it I have sent more then the minimum payment in hopes of reducing the finance charges a little. With the extra money in my account from my tax return giving plenty for the entire premium all at once, that seemed like a good place to target.
The other car related mail I received was a notice that my auto loan was about to mature. Oddly, although I have been paying this as a direct-debit from my checking account each month, they wanted the last payment in a check by mail. OK. I have already adjusted for that money to be gone about the same time each month (about the 23rd) so making the payment is not really going to impact the tax return money. I was excited about this being my last payment and did not want to forget it, so, since the tax return money gave me a nice buffer, I sent it in right away.
As soon as they cash that check, I will own my car outright! Weeeee!
Both of these free-up a nice chunk of change that will help me tackle the rest of my debt that much faster.
This feels so much more productive then how I spent my tax return last year when it all went towards the deposit of on the house we are renting. At this point, the rest goes towards credit card purchases I made recently (Wacom tablet, GoLive, a couple of really great jackets at a consignment shop).
