I’m sure many of you know what it feels like to have a decent chunk of change in a savings account.
I’ve never had this feeling until now. Wow. It’s incredible. For the last 3+ years I’ve never had a savings account with actual money in it. Sure, I had brokerage accounts that sometimes had 50K+ in them….but they were for trading…not comfort/safety.
So, here’s what I’m doing. I have just over $3,000 in a personal savings account. That is my "emergency fund". I don’t plan on touching that anytime soon.
Debt Destruction Fund
With the exception of what I owe my Mum, all my debt is on my business side. So, I’m going to use my business as a debt destruction vehicle.
This is really exciting for me because I’ve been waiting to start this process for a long time: knocking off my debts one by one.
I need to continue to add money to the fund, as much as I can each month so that I can continue to settle/pay down my debts. Currently I have been able to put away now $6,000 into business savings account at ING Direct. This month is going very well business wise, and I hope to be able to stash away another $4,000 into the fund by the end of the month.
Payment Priorities
Since I have established a payment plan with the IRS, that is priority number 1. But that payment doesn’t start until later in Oct. So, my first priority right now is past WA state taxes. After that, depending on how things are looking cash flow wise, I’ll look into knocking off some of the smaller collections accounts that I have, and keep going from there.
I have already paid $500 earlier this month on my state taxes, but still owe just over 3K there.
{ 8 comments… read them below or add one }
Debtkid: WAY TO GO!!!
This is the post your fans have been eagerly anticipating. You are knocking it down, chipping away at it a bit at a time! This is great news. It will feel sooooooo good when you pay one of them off, for example, the state taxes. Keep us posted as you pay off the small ones. Great job!!
You do a good job with your blog. I have found other good blogs because of you. I hope that you can get under the magic $300k soon.
congratulations! im so happy you’re putting away a lot of money. a well-stocked emergency fund is invaluable!
It’s nice to see your, DK. Nice work.
I have a question for you, but it might be kind of insensitive or painful; if so, please ignore this. I was wondering if you have any kind of emotional response when markets get really wild (I’m thinking of some of the current financial market events). Does it make you miss trading? Or does it make you relieved because that part of your life is over?
Ugh. I meant to say that it’s nice to see your plan.
Typing Fail.
It’s great to feel that you’re making progress and actually see some number changing. Keep it up!
How about another comprehensive update of your various debts for your loyal readers who thrive on detail? That way you could get some input from us on which debts to tackle first.
Cheers,
Alan
I’ve got account at ING Direct too – great choice
You should also think about some securities to invest also. In the long-term they will make You more money than saving account. But remember LONG-TERM – so don’t put there a lot of cash which You could need in the near future.
Good luck with Your business.