Month 48 – 4 Years Talking About Money

Holy mother trucker!!! It’s been 4 years. My original name for the blog : “ONE MAN’S MISSION TO GET RID OF 45159.35 OF DEBT“. Kind of tacky perhaps, but it gets the message across.

So the purpose of this blog was to focus on the original debt I had on April 2012, none of the subsequent debt. So I write this post with that focus.

So with that said, as was said on the Suze Orman Show. So Suzy how am I doing?!?!!

Credit Cards: ~$241 balance. I’m moving away from credit card usage for many of my day to day expenses. The interest rates are high and I usually spend more than I want to. My debit card is more convenient, keeps me more accountable and helps to ensure my monthly spending stays more in check.

Navient:
On 4/8/2012:
snapshot

Today 4/4/2016:
navientmonth48

So since I started $33,459.67 has gone toward principal. Or from the total balance to begin with…$38,254.66. That was more than my entire take-home pay up until I was 29. It’s been a rough journey. As I get closer to the finish line I have decided that debt freedom isn’t the goal. The goal is to live a rich life that I enjoy. Pinching pennies isn’t the only way to make financial progress. Earning more, learning new skills, making small tweaks over time. Those things add up.

Someone commented last month that most people don’t pay attention to what they spend money on. I agree with this statement wholeheartedly, because when you pay attention you decide what to prioritize in your life. Not your bills. You spend where you want and cut back on the rest.

$8,500. Not counting interest, paying my currently monthly minimum of $453 leaves about is about 19 months away. The reality though…. Even with my $544 car note I will still have some extra to set aside on my loan. If I get a raise in a few months that money will go toward the loan.

Every night I watch videos on Udemy on web development. This year I am learning how to perform in a series of areas. I’m looking to develop my side hustle game. $100/week would cover most of my car payments. $250/wk covers that and the student loan payment. A little extra money can go a long way.

Lastly but not least, my car payment isn’t due for another month. I’m building a buffer in the meantime. By the time it’s due I will have an extra month’s payment set aside. I like this trend and maybe I’ll increase it. The APR is 1.9% or ~$600/yr in interest so not too extreme. My student loan at the current balance is $362/yr using 4.25% interest.

Some people have big debts at 10-18% interest and payments out of whack proportional to their income. I am blessed to be where I am now, but say I did have an 18% interest rate. On the SL it’d be $1532 and $5,760 on the car loan. That would be a whopping $7292  a year vs my $962 or 758% more. I know some don’t believe in credit but if you’re gonna play the game with the bank make sure your number is high enough so you don’t get ripped off. And minimize credit card debt because it will take forever to get out from up under it.

And the other bits…
401k: $14,921
Roth IRA: $3,843
Total Retirement: $18,764

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