I made two purchases recently, one will be paid off over the course of the year, the other will probably be paid off either by the end of the year or sometime next year depending on how this year taxes work out (I'm self employed).
The yearly one was a new furnace a/c unit which I put on a credit card to get points for (0% interest rate for a year). The second is for a used car which has a higher rate than I would like (4.9), but ultimately a low principal since it was a 2011.
The only reason I'm not paying them both off now is that I want to have the cash handy (we just refinanced the house and no longer have day care bills, so the "net" increase monthly is $300).
The real question is from a budget perspective and general question:
If you have something you could pay off, but are choosing not to (for whatever reason), do you have a separate account that you pay that off from? Do you factor that in your budget of income vs expenses? Am I over analyzing this?
