In the past, I’ve documented how making WEEKLY payments instead of monthly payments can really drum up some extra motivation when it comes to paying your debts.
Yeah, I know that’s stating the obvious, I mean, of course paying weekly pays debts faster than monthly. Hello?
But it’s more about the mental side of things — and “solving” that side of things can really pad your wallet in the future.
Instead of being saddled with this car loan for what feels like an eternity — I can eliminate it completely in… 20 weeks.
Twenty weeks versus three more years. Yeah, that gets me pumped to get started.
Here’s the week-by-week plan:
Okay, so that’s a bit longer than the original 3 month window that I proclaimed I’d wipe it out within but 20 weeks will be my baseline.
I still think I can squeak this one sooner than that with a few more extra payments here or there. My red zone mentality will take it up a notch as I near the finish line.
Now, don’t get me wrong and don’t think I’m just super wealthy or something… The ability to pay $452.50 per WEEK to an autoloan blows my mind too. That’s A LOT of money.
Based on my perceived comprehension of my biweekly paycheck and my monthly expenses — I certainly don’t have an “extra” $452.50 each week to toss around.
Or do I?
See? There’s the catch.
While you may not think you have much “extra” money available to attempt an aggressive pay down like this, chances are — if you follow a rigid plan — you’ll find that you actually do.
Apparently, while I’ve been financially in cloud cuckoo land for the past few years, I’ve probably been blowing the near equivalent of $452.50 per WEEK on incredibly stupid stiff like gummi bears and dirty polyester.
Okay, that’s not entirely true (most of the time) but you get the point.
Even $25 extra per week makes a HUGE difference on something more long term like a mortgage — the key is that you need to do it weekly. WEEKLY! And stick with it.