Money not on my mind

As my exams get closer, I’mpaying a little less attention to ways to improve my budget, though finance is always on the backburner.

Today I aim to put $430 into the car account. We have decided to reduce the car debt only (rather than home deposit saving) because I believe that we paid too much for our vehicle and we are therefore upside down on our loan as things stand (probably by about $2000). I base that on the fact its been 2 years since we bought it (used), in which time we’ve pretty much paid minimum payments (our son was born etc) and it has probably dropped a little in value too. I think we didn’t negotiate enough at all, and the guy was probably delighted that we paid so much. Don’t worry, we won’t make that mistake again!

Anyway, for now we will put the amount we intended to pay off it ($130) + the amount we had intended to save towards home ownership ($300 every week). Our rent-free existence here is allowing us to do this, so I recognise how lucky we are (believe me, there are downsides!).  Interestingly enough, $300 is about the minimum we could pay to rent a basic family home here now, because of a mining boom in the region. So I suspect we will pay some big dollars off the car for a while, then revert to home saving after new year. But those of you who know me will realise this is liable to change at any time!

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