Peter Hentges (jbru) wrote,
Peter Hentges
jbru

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Plans

Got to looking at short-term saving strategies yesterday. Given my recent unemployement and the lucky happenstance of having a few months worth of bills in the bank when it happened, it seemed wise to prepare for similar emergencies in the future. So I've set a goal to get six month's worth of expenses into the bank. The good folks at fool.com also gave me the good idea of including other things in the calculations for how much I'll need.

I want to make a return trip to Spain and REI has a cool bike trip that would make a great start to such a trip. I'd want to get back to Toledo, however, and to spend some time in Barcelona. And to visit Sevilla this time around.

So, anyway, rather than throw all that on a credit card, I'll put the cost of the trip and associated expenses into my short-term savings plan. Probably means that it'll take longer to reach the goal, of course, but when I do, I'll be able to spend the money freely without it costing me more in awful credit card interest.

Speaking of which, I'm quite proud that my credit card debt is continually diminishing. Not fully gone just yet, but I have done good things like consolidate into a single lower-interest card. When I get my next home-equity statement I'll need to look seriously at using it to pay off the remaining credit card debt as the interest there is lower yet. (And tax deductible, whee!) A far cry from the days of maxed out cards with horrendous interest rates and months without making payments.

I get a warm satisfaction from thinking about such grown-up stuff. Sometimes I wish I'd started doing so earlier, but I don't think I was ready yet. Someone could have explained all this stuff to me when I was twelve but, while I was intellectually mature for my age, I don't think it'd have had the same impact on me. What does a teenager know about losing a job or tossing your future away on high-interest credit cards? I was concerned about using my allowance to buy books and games, go to movies and hang out with my friends (like about everyone else that age, give or take various interests).

Ah, the sweet satisfaction of saving.
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