The Daily - Sunday, October 7, 2018 (PM)

DIVIDE AND CONQUER

This morning's run was less than stellar. I only managed to log 0.67 miles before my body claimed my attention; the body has a funny way to dictate what one does. Although 2/3 of a mile is OK, I simply was not happy with that. So, after dinner tonight, I got into uniform and went for a 2.2 mile jog. It was still warm and humid, but I made it. Now I am happy. I love jogging. And now I am on track for tomorrow morning and another 2 mile jog.

SELF-FINANCING, DEBT RE-ORGANIZATION

As I mentioned earlier, MacKenzie and I decided to pay for her car on our own. She is putting in $1000 from her savings and I am putting the other $1000 from our emergency fund. This meant that I would need to replenish both of those funds as quickly as possible. But I also saw the opportunity to apply a Dave Ramsey principle and get rid of my only other revolving debt: a credit card balance of about $2000. Our plan right now is to tackle the credit card debt first. Why? Because it is the most expensive debt we have. On the average it is costing us $30 in interest every month. Even if I repay MacKenzie with some reasonable interest, it would be lower than the credit card payment. Eliminating the credit card debt will be a multi-step process:

1. Stop any new charges on the credit card — this will help re-build better, more responsible spending habits.
2. Pay off as much as possible every month.
3. Once my other car is paid off (December or January), then apply all that money (almost $400/month) to pay off the credit card.

I estimate that the credit card will be paid off by February 2019.

With no credit card debt, then we will start rebuilding the two savings accounts. I hope to re-pay MacKenzie no later than May 2019. After that I can rebuild the emergency fund and start building a Kia repair fund (it has 156000 miles and needs some preventive work, such as a timing belt).

With a solid plan like this, by September 2019 the only debt I will have is my mortgage. My plan is to get rid of that debt sometime in 2020 or 2021. 

I very much look forward to becoming and staying debt free.