01 February 2013

Goal Tending


Note: This post was originally scheduled to be published on 1 February 2013. That time has obviously since passed so a LOT of the stuff discussed has since changed. Nevertheless and although it's not complete, I feel that there is still value in publishing it.

Well, I didn't quite intend to be doing this so soon, but I won't complain at all. The time has come to review my 2013 goals because two have already been met.

The first one is one of my retirement account loans. As of the 25th, my last payment was sent in for one of the loans from my retirement account. I took it out a little over three years ago to cover an unforeseen emergency and to also pay off some debt. With an interest rate at barely over 4%, it was a fundamentally sound idea when I took it since the debt has interest rate of 24%. Not many market returns can consistently give even half that amount, and that 4% is paid back into my retirement account anyway. Unfortunately, I neglected to actually stop spending as well, so the amount has crept back up.

Still, I can finally report that as of this month, that card is also paid off. I decided to just raid my savings account, which has grown quite nicely as of late, to complete the payoff. Stashing money into an account barely paying .08% per month while my debt is costing me 2% month is foolhardy and I've finally realized that. Of course, I am keeping a small amount of money on hand. But in general, reducing my debt means I've suddenly reduced my living expenses too—a critical part of FIRE planning. So with that card also paid off, I have two of the goals now accomplished. At this rate, I'm going to have to add some more goals or else I'll be out of stuff to do.

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