I just paid my least favorite bill yesterday. It is a bill that arrives quarterly and without fail. It is almost as much as my house payment, and would be more if I didn’t escrow real estate taxes and insurance. I am talking about my quarterly payments for life and disability insurance.
Now I do realize that I have to have the insurance since I am young enough with 5 kids still living at home. And the good news is that I do have adequate insurance should I die. It would be a struggle if I become disabled, but I am working on trimming down my monthly expenses so that I might be able to get by on less.
Nevertheless, I hate having to pay that much money every 3 months for something I hope to never actually use. This provides me with another good reason to get out of debt and be able to achieve financial freedom so that I don’t have to spend so much money on life insurance and disability insurance.
Three Year Plan
In July, I took the time to segregate my debts and pull out all of the consumer debts that I would like to get paid off in 3 years. I did this because it seemed rather convenient to look at the credit card statements for some useful information. You know those boxes that tell you if you pay the minimum it will take you 47 years to pay off the balance, but by paying a little bit more, you can pay it off in 36 months. That is the information that I put together in a spread sheet.
Well, now it is time to start doing something about it. Why? Because a third of my budget is going to these credit card, auto loan, and tax debts. Imagine the extra money that I would have each month if I could simply pay this crap off. Plus, the interest rate is high on some of this debt also. The auto loans are at zero percent, so I won’t be paying those off early, but getting the credit cards taken care of is becoming a very high priority. At the end of the three years, I would still have mortgages and student loans to pay off, but the low interest rate is not near as painful.
In fact, I have even thought about starting another blog solely for the purpose of keeping me motivated and on track. A little online accountability can go a long way. Not sure if I will be doing that, but the thought did cross my mind.
The Ultimate Goal
Ultimately, I would like to be able to get rid of my life insurance and disability policy because I am financially free and making some passive income. If you have no debts and income producing assets, then you really wouldn’t need to have those types of policies. Then I could get rid of my least favorite bill.
Readers, what would you do if you had all your debt paid off?
Taking 10 days out of your life and losing all contact with everything that you normally do is quite a change to the system. I am thinking that it was a good thing, but it sure makes for a lot of work to prepare for the trip and to catch up once home. I think I had a total of about 30 minutes worth of internet access during my time there which was just enough to delete all the worthless emails that I get so I didn’t have to do quite as much upon returning home.
But I still have a stack of snail mail to sort and I really need to work on mobilizing some traffic to my blogs since September 2012 was the worst month for traffic that I had seen in a long time. I had quite a bit going on during the first part of the month which meant less content, and I didn’t publish anything on Cash Flow Mantra or Grand Per Month while away. So, I will need to get back at it, start publishing and interacting more so I can see a turn around during the fourth quarter.
I have quite a few adventures to share about my trip along with some observations. These should provide for some interesting content for the month here on CFM. In the meantime, I need to catch up on some links for carnivals and start attacking that stack of mail—