Friday, April 6, 2012

Why we sold our car...



Yup it is SOLD! ...as you may already know from the past post. But WHY?! How do we live without two cars?!! What am I going to do without my nice smooth leather? Oh... you.. weren't thinking that? I guess that was me. I would have been freaking out too(I'm still a little sad to let it go) if we were in any other circumstance than we are right now.   

Here's the WHY:

*We have DEBT... LOTS OF DEBT. Not irresponsible debt. It is all justified by today's normal terms of debt. But it IS debt and WE don't like it! We have student loans($31,000-wish we could sell that MBA certificate... any takers? j/k it was worth it and one day it'll pay for itself), we had the car loan, and we have a little loan to my in-laws for down payment help on our condo.

*Currently we live in a tiny condo that we remodeled(check out THESE posts) and it is right next to my husbands work. He walks to and from work EVERY DAY!!! Money saver and great exercise! So really we only need one car.

*While our condo is already saving us LOTS of money(read post here)... we don't want to live here forever. We want a HOUSE with a YARD. *sigh*

*Selling our Pilot frees up lots of cash, here's how:
-$275 monthly payment freed up($3300 a year)
 -$500-600ish in insurance premiums yearly
-$50-100 monthly in gas(because some will inevitably be transferred over to the other car)
-$1900 surplus because it was worth more than we currently owed
    So a total of  about $5100 a year of savings PLUS the one time savings of $1900! 
($7000 Savings our first year out!!)
-AND WE ARE $11,600 FURTHER OUT OF DEBT! 
This means our net worth has GONE UP! 
 Ok, so that doesn't mean a lot to me but it's still true when looking at the numbers.
*Since we no longer have the car payment and we have all that savings... that means we can SNOW BALL it into the student loans and our other small loan, SHAVING ONE WHOLE YEAR OFF of our current aggressive debt payoff plan!! YAY!!!

*This also means we should be completely debt free(besides our mortgage) by October 2013 and even have some savings to show for it! 

*Disney Land October 2013 HERE WE COME!!!

Be sure to follow our progress at the beginning of each month here!

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5 comments:

Mrs. Lay said...

Wow! Awesome!

Rick and Sue said...

Ok I am so impressed that I am motivated now to get out of debt more than lose weight after reading that :)

Suzie Thomas said...
This comment has been removed by a blog administrator.
Julie said...

Previous Comment about Payday loans removed. Sorry, PayDay Loans are the exact opposite of what we are trying to do and what we support. Thanks!

Julie said...

Thank you Mrs. Lay and Sue! It has finally felt like we are making serious headway!

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