CAR PAYMENTS SUCK!
Okay, if anyone remembers, I posted about how I bought a car above my means and was stuck with a stupid car payment… If you want to check it out, go here.
Anywho, read below to find out how everything worked out.
Hint: I paid it off and am using my new cash flow much more wisely!
I DID IT! In September of 2018, I made the final $4,000 payment to completely pay my car off!
Believe it or not, there was NO “Congratulations!” when I sent the last payment or anything.
In fact, it took weeks before I got any acknowledgement at all…
But getting acknowledged was not the goal here!
Eventually, I got a formal letter from the lender noting that my loan was paid in full.
Even better, the letter came with the title!
For those who are as ignorant as I once was, the title is what actually gives you ownership of the car.
That’s right, it was 100% mine.
The best part, I was no longer paying $330 of my hard earned money each month!
So what did I do with this new found cash flow now that my debt was gone?
Well, the first thing I did was increase my 401(k) contribution so that I am now on pace to max it out in 2019! *slow clap for me*
That’s right, with my car loan paid off I will be able to contribute the full $19,000 into my 401(k) next year.
If anyone remembers, this was my first step to retirement and financial freedom (the article explaining why is right here!).
I have to admit, I would have loved to put that extra cash into the bank each month and treat myself with a vacation, new golf clubs, or something else that I’d get instant gratification from…
But knowing that I’ve expedited my future retirement and financial well-being is SUCH a gratifying feeling.
I’m no longer paying debt, building my net worth, and making my money work for ME.
For anyone asking any of the following questions, the answer is YES:
- Should I buy a used car below my means instead of a new or more expensive used car?
- Should I pay off my car loan with my extra cash that’s laying around? Note: pay off higher interest loans first if you have them!
- Does being debt free really feel that good?
Alright, I’ll get off my soap box now. Stay tuned for more exciting news about how I’m continuing my journey to retirement and financial independence!