Picking Up the (Payment) Pace

We’re well into the month of May now, and after my April in the clouds financially, let’s see if I’m on track again…

I ended up going back to my tried and true weekly payment system. I’d never done it with the auto loan before so I tested it out with a couple of e-payments initiated through my checking account last month. Success.

To meet my original goals for 2008, it basically came down the fact that I had to set aside $2000 per month in order to meet them all by the end of December.

I’m sticking to that plan, and though it seems as if I’m far ahead of schedule, having wiped out the credit card debt, I’m actually not far ahead at all. In truth, I’m actually behind.

There are almost 8 months left in the year and the total cost of my goals is still a little over $16k. It’s going to be tight.

The current strategy is to split the $2000/month right down the middle with $1000 going towards the auto loan and $1000 towards savings in the ING Direct account. Any extra I’m comfortable parting with will go towards the mortgage.

So, I’ve completely automated the auto loan side of things. Each Wednesday, I have $150 being transferred from the checking account to Toyota. In addition, I increased the regular $289 that Toyota pulls from my checking account on the 15th of each month to $400. Together, my monthly payment is now $1000.

At this rate, the auto loan will be eliminated sometime in the Fall. Not exactly as soon as I’d hoped, but it’s a sure thing at this point and I like that aspect.

For the other $1000, I’ve got $75 being transferred over to ING each week on Tuesdays.

True, this only adds up to $300 worth of automatic transfers each month but I’m transferring in the remaining $700 on a manual schedule based on when payments from my side business come in.

Of late though, the side business hasn’t brought in nearly $700 so the remainder is coming from my regular paycheck after the mortgage and all of the bills have been paid.

So far this month, if I include the $75 transfers already scheduled, I’ve accounted for $800 — partly in thanks to the economic stimulus check. Making up the remaining $200 from the paycheck I’ll receive on the 22nd shouldn’t be an issue.

That will put me right on track — and I should also have some left over to attack the mortgage principle as well (to eliminate PMI).

Hopefully, a month from now, I *really* will be ahead…