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Weekly Update #26- Oops!

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Hey everyone, and Happy Tuesday!

To jump right into this post- last week I made an error. Not necessarily a bad error, but I feel like now, more than ever, I’m skating on thin ice. Every Wednesday (my pay day), I have my checking account withdrawn to pay off my student loans. I put make the payment request sometime before the payday (normally a week in advance) so that on payday, the money is gone and I don’t have it sitting in my bank account. Lucky for me- this month happens to be a 5 paycheck month and last Wednesday’s was the paycheck where I had nothing due, so I could put nearly the whole thing on my loans. I must have realized this earlier in the month because I somehow ended up making 2 payment requests of $705.00 to be withdrawn on the same day. I didn’t realize I did this until my account balances looked awfully low. I looked at my bank account, and sure enough, 2 payments were made. I say this isn’t necessarily a bad error because it isn’t like I went out an bought something unnecessary, but I had to move money from my EF to my checking to make up the difference. I’m down to $1000.00 in my EF, which has never been lower, hence why I feel I have a very shaky feeling about it. My plan right now is to finish paying off Sallie Mae 04 in 3 weeks and then build my EF back up before hitting the last two loans. If you look at the balances below, the $1,200 shouldn’t take too long to pay down.

On a separate note and a follow up from last week’s post, our anniversary weekend was amazing. Thanks to all those that shared your stories with me. Our trip to the ski resort was fantastic and it was a nice little day trip where we walked around their downtown (not the golf course, like I originally wanted) and got some appetizers at a local bar. When we got back home, GF made an amazing dinner and we exchanged little gifts. My gift for GF was, again, of the homemade variety. A couple of weeks ago, I was doing some research on homemade anniversary gifts and stumbled upon a Pinterest account that described homemade bath bombs/fizzies. Here’s the finished product below:

Bath Fizzies

It piqued my interest and I found a simple recipe on Martha Stewart Living (the recipes are easily google-able- I clicked on the first link). Since I don’t have any hobby/crafting supplies at home, I had to buy everything I needed to put together what I was envisioning in my head, including the acrylic paint and paintbrush for the front little “card” I made, the ribbon, tissue paper and dye for the fizzies. As for the fizzies, of the 4 ingredients needed (corn starch, baking soda, citric acid and essential oil for scent- I chose peppermint) I didn’t have any of them at home, and the citric acid ended up being a specialty item I had to buy on Amazon. The total came to around $60 for eveything. It would have cost a whole lot less if I did crafting and/or baking on a more frequent basis and had the items already on hand. To put the whole thing together took about 4 hours, 3 hours was for the prep and set time of the fizzies. Needless to say though, GF LOVED them. I don’t think I’ve ever been so proud of a gift I’ve given someone. It was truly a wonderful weekend.

As for my balances, here they are:

Loan NameInterest RateOriginal Balance- May '09Current BalanceTotal Paid OffPaid Since Last Week
Sallie Mae 015.25$27,837.24$23,662.64$4,174.60$0.00
Sallie Mae 024.75$22,197.02$18,556.32$3,640.70$0.00
Sallie Mae 037.75$20,692.10$0.00
$20,692.10$0.00
Sallie Mae 045.75$10,350.18$1,221.75$9,128.43$1,409.92
Sallie Mae 055.25$6,096.03$0.00$6,096.03$0.00
Sallie Mae 06 and 074.75$6,415.09$0.00$6,415.09$0.00
Sallie Mae- DOE 015.25$5,000.00$0.00$5,000.00$0.00
Sallie Mae- DOE 025.25$3,000.00$0.00$3,000.00$0.00
AES6.8$9,000.00$0.00$9,000.00$0.00
TOTALS$110,587.66$43,440.71$67,146.95$1,409.92

I hope everyone has a great week!


12 Comments

  • Reply debthaven |

    That loan is nearly gone!

    I certainly hope you don’t need to, but keep in mind that with the amount you’re paying on it, you could cash-flow several smaller “emergencies” in just a few weeks. Although you’re right to build it up more if it makes you feel less anxious, of course.

    Are you going to take a short “break” when this loan is gone?

    • Reply Matt |

      You’re right, I could cash flow any emergencies if they arise, but still- I’d feel a little better with $2,000 in the bank.

      And nope, no break. Other than resupplying my EF, I’m going to get right into tackling the biggest of my loans: Sallie Mae 01.

  • Reply Joe |

    I think you’re doing great! Extra debt paid off is good, you have the discipline to rebuild your emergency fund.
    Reading these types of posts really reinforces for me what I think will end up being true for all the bloggers: the biggest benefit of being debt free is to not get side-tracked, or even have to think of, these types of “cash flow” issues. That really cuts down the stress of managing money and nicely sets the stage for longer-term, more strategic decisions.

    • Reply Matt |

      Thanks Joe! I can’t tell you how much I’m looking forward to the day where I don’t to worry about these types of issues and not having that money management stress!

  • Reply Walnut |

    It definitely makes sense to rebuild the emergency fund after paying off this loan. This last month I accidentally paid some bills in the wrong order and had to bring in some temporary cash from my savings account to cash flow as they all hit at once rather than throughout the month. It’s definitely emphasizing to me that I need to not only rebuild the savings account, but I need to allow a little more cushion room in my cash flow. It might also be time for a no spend month for me in order to accomplish both of these goals a little faster.

    What is your ideal emergency fund level? Is it in the $2500 range?

    • Reply Matt |

      Yeah, the $2,000 to $2,500 range would give me the most comfort, without feeling I have too much savings. Should only take me a few weeks or so to get back up to those levels again.

  • Reply Sue |

    I absolutely love the idea that you made the bath bombs – I would be THRILLED if my husband would do something like that but….alas, it will never happen….gift giving is not one of his strengths (buying or making), thank goodness he has so many others 🙂

  • Reply Jean |

    That’s the ‘dark’ side of electronic bill pay – you (I) forget that I’ve already set up a payment (or sometimes, NOT set up a payment when you think you have…). I keep all of my confirmation emails in a separate folder so I can go back & see which bills I’ve paid (or not). It will make your payoff that much sooner, but it was good that you had $$ in your EF to cover your living expenses. You’re making great progress!

    I love that you are going to homemade route for gifts. If you do more bath fizzies, I would suggest lavender oil – it’s soothing/calming where peppermint tends to be more invigorating. I guess it depends on when they’re being used (morning or evening).

    • Reply Matt |

      Thanks for the tips, Jean! I have a ton of the ingredients left over to make more, so we’ll do some lavender like you suggest, and also do eucalyptus for when we’re sick- I love that scent so much, especially when I have a stuffed nose.

  • Reply Brooke |

    Hey, you’re so close! I agree with you on re-building the emergency fund. I’m splitting our extra paycheck in October between debt payment and emergency fund savings for that reason.

    • Reply Matt |

      Good idea, Brooke. I’ll be using a couple paychecks at the end of this month and/or November to get my EF back up. Should only take a few weeks, thankfully.

So, what do you think ?