More to come but I paid off the final balance this morning 9/30/2016. 🙂
I just reached an epiphany that I could pay off my student loan on *Friday*. A few caveats…
- I would be paying less than last month’s full balance on my credit card. My credit card balance is also about $2600. In order to satisfy last month’s statement I need to pay an additional $900 with the $700 I already paid on 9/15. Partially due to a New York trip I booked (~450), vet visit ($170) for my dog combined with getting wedding gifts for two friends who got married recently, going away / birthday gift for a friend who moved to Seattle… and other expenses. APR on the card is 12.24%
- I would deplete my emergency fund to or close to $0. I still have about 100 hours of vacation time if I were to hypothetically get laid off tomorrow.
I also would have 50% more free cash to apply to my credit card than normally is the case. I upgraded to the iPhone 7 and am getting $192 soon for my 6. That money can go right to the student loan or current credit debt too.
The big question is…. After 15 years of having a student loan should I just go ahead and do this??? I could wait another month….
It is now 1984. It appears IBM wants it all. Apple is perceived to be the only hope to offer IBM a run for its money. Dealers, initially welcoming IBM with open arms, now fear an IBM-dominated and controlled future. They are increasingly and desperately turning back to Apple as the only force that can ensure their future freedom.
Oh wait… Not that 1984, but $1,984. As in my student loan balance. That’s about what my computer, a MacBook Pro cost when I purchased it in early 2014. This is a moment to celebrate. Why? For the first time ever my student loan is below $2,000. Progress my friends, it’s all about progress.
What about Retirement? $18,223 in my 401k and $362 in my Betterment Roth IRA. So $18,585 total. Credit cards? Credit card balance is around $1400. Each paycheck I make a $700-800 payment toward that with plans to increase once student loans are gone.
Now what about the car??? Current payoff is $29,169.81 at 1.9%. That’s down from $1997.39 from $31,167.20. I have another payment coming up in a week which will drop it below $29k.
Not being content with where I am today, I started to do a little bit of job searching. Interviewed with a local employment agency for a contract gig. The position sounded interesting and I think would be a step forward in my career. However I don’t think they would be able to match my benefits aside from medical and dental. 160 hours of vacation, essentially unlimited sick time, paid holidays, 5% retirement matching… As a contractor, you need to plan for all of those things.
It’s important to look at the big picture when making big moves like working for another company. Can’t afford to leave money on the table. I’ve been following a little bit of Alex Becker‘s work, read his book 10 Pillars of Wealth where he talks a lot about working for yourself and the benefits of a cash flow business. I also am in the middle of Scott Alan Turner‘s 99 Minute Millionaire ebook along with The Procrastinator’s Handbook – Mastering the Art of Doing It Now by Rita Emmett.
My last point and this is a big one. Don’t stop. Live is a marathon, not a sprint. Just because you had a setback or 5 doesn’t mean you let that break you and give up. From 2009-2011 I went a year without a regular FT job, not qualifying for unemployment and over $42k in student loan debt. I was down, depressed and unsure my future. Today I am on more solid footing. Not balling by any means but I’m way better off than those dark days.
Applying my own advice to different areas of my life, learning from experts to save time, minimize frustration and see results.Hope to share more with you on that soon.