So as I work on my business plan I have been working to get my personal financial situation in order. Recently I got my tax refund. It would have been really easy to use that money to get the equipment that I need to build my studio.
I decided that there was some other things that I had to do before I could get my business up and running. Just 6 months ago I was struggling financially. I received news from my bank that they were raising my mortgage 500 per moth due to an error with the escrow account (the banks error) So I called before I was late to tell them that there was no way for me to meet that obligation. I asked for a modification to my loan. The said I had to be 30 days late in order to apply for a modification.
At that point I was preparing for the worst.I was looking at rentals and assessing the damage that would come out of a foreclosure. This caused a great deal of stress on my family.
So I did not pay my mortgage in October and applied. I was turned down in December. Now I am 3 months behind.In the meantime I was paying down debt in record timing. I paid off all my credit cards( about 3000.00) and then I applied again. the whole time I was waiting to hear from the bank I was a debt paying machine.
I got news two weeks ago that we were approved for a modification. YAY!!
Now it brings me back to my tax return. So instead of putting the money towards my business I decided that it would be better to become more financially independent. I took the money and paid off a small loan and one of my cars. The feeling of paying these off has been one of the most rewarding things that I have done in a long time.
So how did this help me?
Well between the credit cards, car loan, and the other small loan that I had it saved me about 750 per month. That could be a potential 9000 per year that I can save to put towards my business venture. Not to mention the interest that I have saved by paying early. As long as I don't run up the cards I will get this amount every year and I will never!! be in this position again.
This year is going to present opportunities that I did not have before. Is this the year I get rid of my Student Loans and My other car payment!! Seeing the impact that live can have I hope so. If I can reduce my debts and increase my disposable income I will be working for myself even faster than expected.
Till then...
Terry
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