My freelance check showed up! $1250. Not life-changing but also not bad. I immediately transferred it into the “life fund” which is now over $13,000 again. (It was up to $15,000 or so last year before I moved some of it into my IRA.) Even with that, I am still under $60,000 though! Between the car repair bill, paying rent, and taking my cash draw out…. Close, though, and when I get paid next week I’ll be back over $60K, and also be able to transfer $650 into the life fund and $190 into the emergency fund.
It really does make a difference to be out of debt. I’ve been hesitating lately over my car. It’s kind of on the border of money-pit status, where I have to put $500-1000 into repairs every year, so part of me says “sell it while it still has a bit of value” — maybe $1500, $2000 if I’m lucky — and get a newer used car. But doing that would require either putting an enormous dent in my cash savings, or taking out a loan. Both of those things make me uncomfortable. I really like having a lot of cash on hand. And I really like that, when I get a ‘windfall’ like this freelance check, I don’t have to immediately throw it at debt. I might save money in the long run by switching out cars now (projecting fewer repairs basically) but it would be a big hit on my finances in the short term: both paying for the car, and presumably paying a higher insurance rate. (My current insurance is all of $45.90 a month, including renters’ insurance.)
I just don’t know!!!! Expect this to take up a lot of my thought in the near future 🙂