Every few months I evaluate our financial health and look for ways to cut wasteful spending. I am constantly surprised when I find something worth going after. More recently I got quotes from insurance coverage for my wife and found that it would be about $150/month cheaper to get coverage for her outside of my work plan.
So in the coming month, likely starting in January, this will be another savings to add to the overall savings over the past year. It’s another $1,800 a year that can go into savings, a vacation or likely a combination of both.
Also coming around the bend is paying off the last piece of consumer debt outside of our mortgage. We have about $7,000 that we owe for my wife’s car that we bought in 2012. We have more than 7-times that amount in the bank and are more than able to pay it off now, but had waited while we were making improvements to the new house.
We never intended to keep the loan to maturity even with an ultra-low interest rate of 1.7%. This is more than we are receiving from the bank, so financially it makes sense to just pay it off now. Plus there is the psychological win of getting rid of the debt.
2015 is shaping up to be another great year, and I am excited for what is to come. We will continue to make our journey towards financial freedom. Not through austerity, but through prudent and fiscal responsibility.
Until next time….
– Gen Y Finance Guy