My recent debt reduction became even more important in the last couple of days. I learned that my job may be outsourced within the next year or two. I am a realist-I work in Human Resources and I see this happen. I literally shook my head and opened up my payoff schedule and was thankful I had gotten busy reducing debt-even happier that I was doing it faster than planned. I knew I would be okay and not lose my house or car, etc. I know I will work somewhere. Freelance HR, maybe start selling my artwork again, doing art blogs again, teaching artwork, doing employment investigations-I have lots of possibilities.
So I need to kick it in high gear and increase my savings and pay off the mortgage and auto loans. With the elimination of the credit card debt, I will be doubling my monthly mortgage payment. The more I can eliminate before a layoff would occur, the better my position post-retirement. Since I really got focused in the past year, I could survive early retirement.
I am still excited about paying off all of my debt, except for my mortgage and my automobile loans. Between the two loans, I owe almost $37,000. Because my mortgage interest rate is just a bit higher than my automobile interest rate, my plan is to eliminate my mortgage first and then the automobile loan about a month later. This is scheduled to happen in March 2014. Paying off my credit card debt a few months earlier than planned saved me an additional $275 in interest. In order to make that savings “real,” I deposited that amount in my savings account.
I will be spending the next several weeks looking at several options should my job be eliminated. I need to plan not only for just normal living expenses, but routine replacement of windows, siding, roof, furnace, and other appliances. I had a 10-year plan for saving cash for those types of purchases, and I will need to look at other ways to finance if I can’t save enough cash in savings before the out-sourcing of my position.
Detours: When life throws them, you have to find another route.
Image: fabbio, via Flickr