Usually when I hear those words, I think of something positive like a Hollywood star being discovered and cast in a major motion picture allowing his/her career to take off. Or maybe an author signing a big book deal or landing on the best seller list.
Unfortunately, in my case those words had a different connotation as can be seen in the picture below:
Trying to break my fall during the first inning of Monday night softball, July 29th, I could hear the snap and knew that “my big break” was referring to my arm. The radius was broken and the ulna was dislocated at the wrist which is where the pain was and where I thought the fracture would be. Turns out the break didn’t hurt at all.
After surgery on Wednesday, I took pain pills for a couple days but within just over 48 hours was done with that. I drove myself to get an oil change on Saturday and have been going since with a plate and screws in the bone and a cast.
The biggest problem is not being able to work as almost everything I do requires use of both hands. I am getting half pay with short term disability, but I would rather be working. Actually, a bigger problem (for me) is having this time off and not being allowed to golf. The doctor suggested 3 months because of the rotation and ligament damage at the wrist, but everything was healing well at the two week follow-up.
Bottom line is that softball and golf are done for 2013 unless the weather is really nice in November.
Check Your Disability Coverage
If anything good can come of this, it is comforting to know that I have a good long term disability policy through work as well as some personal insurance that after 3 months and 6 months would end up covering essentially my entire salary through age 65, meaning I could make it until retirement. I have rental property that would be paid off by then which could actually then fund my retirement.
Even though this month is a bit tough, it is nice to know that our family would survive and not have to adjust lifestyle that much. And there is a one armed golfer’s association so I could find something to do with my free time since blogging with a cast isn’t the easiest to do (although I am getting much better).
It has been forever since I posted these links so I need to do it now:
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?