How I did it: I bought a car right before starting the most high-paying job I'd ever had. I figured that after a couple months of working, I'd double or triple my payment and have it paid off in no time.

Well, as is generally the case in life, things didn't go as I'd planned. After hopping across a few towns and careers over the next couple years, I still had a ton left to pay off. I'm a bit settled into my current job, so I finally started increasing my payments, paying three or four times the monthly payment. I finally got it paid off a year ahead of time.

Lessons & tips: Remember: just because you think you'll be able to afford that car in the next six months doesn't mean you'll be able to afford that car in the next four years.

Resources: Google Docs helped me square this one out. I double checked my balance and rate with my bank about 6 months ago, then planned the whole thing out with formulas so I could toss around different numbers and see how quick I was paying it off.

This also had the emotional benefit of being a "scoreboard" for my payoff progress. I'd update it immediately after making any payment. It felt like beating a level in a video game.

Sep 28, 04:24PM PDT | 1 comment | 2 cheers