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Focus

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With so many disparate goals for this year, some that focus on debt-reduction and others focused more on savings, I felt a bit like we’ve been playing a game of tug-o-war. We want so many different things and, like a child, we want them all NOW!!!

Ugh. Why does adulting have to be so difficult?

Screen Shot 2017-03-22 at 1.51.03 PM

 

Source – Someone, buy this for me! ; )

When we got hit smack in the face with our looming IRS debt, it forced me to take a step back and re-assess our plans for the year. Some changes I have already implemented (which will go into effect in April) include:

  • Reducing my retirement contributions. My university requires a minimum 7% contribution. I had been investing an additional 3% of my salary (for 10% total), but given our need to get some liquid cash for the IRS (and for debt payments, as well), I called HR and reduced my contributions down to the minimum 7% required.
  • Eliminating extra mortgage payments. Though we closed in November, it still feels like we just barely got here! When I set up our mortgage auto-payments, I set them to include an extra $300 to go directly toward principal. Our required payment was $950, but we’ve been paying $1250. I called the bank and removed our extra principal payment, reducing our auto-draft down to the minimum $950/month that’s required.
  • Practicing patience. I already talked about how my daughter lost her water bottle. Instead of immediately replacing it, I’ve made her start using my water bottle as her own. Unless her old one miraculously turns up (no idea where it is – it’s been lost for 3 weeks now), she won’t be getting a new water bottle until the start of next school year. In the past, I would’ve just immediately purchased a new one. But now I’m examining every purchase and really making an effort to practice patience anytime I’m thinking of buying something that we don’t immediately need.

All of these changes are in an effort to FOCUS on one thing at a time. Dave Ramsey talks about the power of focus (which, I believe, helped motivate the way he designed the Baby Steps so one “goal” is being focused on at a time).

We just have to get out of debt. It’s got to be done. This month marks completion of my third full year of being on this debt-reduction journey. There have been lots of highs and lows and this HUGE tax bill has definitely got me a little down. But, if anything, it’s just made me strengthen my resolve that we need to get out of debt ASAP!!! We had two years of hard-core debt reduction (no frills), one year where we loosened the purse strings a bit, and this year will be a mix. We do have some fun things planned (still doing our first ever Mom-and-Dad getaway sans kids this summer! Eeeeee!!!!!!), but I’m really realizing how much SOONER we can be out of debt if we return to our steadfast FOCUS on the goal at hand. It’s a tough thing going through this journey for SOOOOOOOOOO long. But that’s what the deal is. We started this journey with nearly $150,000 in debt and only making about $50,000/year! Obviously with those numbers it was going to take some time. Things have changed – our income has gone up and our debt has shrunk as we’ve been making huge payments. But it’s time for a renewed focus. I don’t want to be doing this for another three years. That’s too long. I want to try to cut that time in half. If we can be debt-free in a year and a half, I would be overjoyed! I can see the light at the end of a tunnel if we’re only talking about another year and a half!!!

Some of this is just rambling thoughts. I’d like to write up a whole “3 Years Reflections” post with thoughts and reflections on the entire debt-reduction process, to date. But in the meantime, I just wanted to jump on here and say “Hi!!! and let you know about some of the upcoming changes I’ve made in an effort to increase our monthly take-home pay so we have extra cash to throw at debt. It needs to happen. I can’t wait to kick our debt’s butt. Next debt on the chopping block is our medical debt. By this time next month, it will be 100% GONE and then we’ll be on to just the student loans. Can’t wait!!!

Hope you’re having a great month!


Spring Break (+ Feb. Debt Update)

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Hi All!

Last year, my first year back to full-time work, my Spring Break happened to align with my kids’ Spring Break. I remember at the time colleagues mentioning how lucky that was and to appreciate it. So it was no real surprise when this year rolled around and, looking at our academic calendars, I realized our Spring Breaks did not align. Bugger!

But, I think we’re also making the best out of having separate Spring Breaks! This week is my school’s Spring Break (and hubs’ Spring Break as well). I’ll be back in Texas for a couple days to deal with some dad-related issues. But otherwise, hubs and I are looking forward to doing some serious manual labor out in our backyard. When we bought the house, it had nothing but chest-high weeds all through the back. We mowed them all down, but have done very little since then. Hubs has a friend who owns a landscape company and came over to take a look at our yard and offer some practical suggestions in terms of plants, placement, etc. So for the cost of some plants + weed killer + some hard work and elbow-grease, we’re hoping to get our backyard into a more presentable condition. We’ve allotted $200 to the project. It would be a project the girls could help us with…but will probably be easier without the interference, er, “help.” And I like that the couple days I’ll be gone are on days that they’re already in school. Makes it a bit easier for the hubs and makes me feel less guilt about being away (quick Dad update for those who have been following along and are interested – skip this part if you’re only here for the financial -my Dad, who has frontotemporal dementia, continues to decline. His speech is almost gone at this point and he lives in a constant state of agitation, presumably from the confusion and frustration associated with what’s happening to him. He’s been living in an independent living facility but we’ve been touring several assisted living and dedicated memory-care places. It’s a tough move to make but it’s coming up probably sooner rather than later so we’re trying to research and prepare accordingly. Being that the purpose of my trip is for things related to his care, my sister and I decided he would cover the cost of my airfare – something he would have done in the past if he had the mental capacity. I’ll be staying with my mom so I’ll have free lodging, and will only be paying my meals out of pocket which should be minimal. I’ll be there not quite 3 days.)

Next week is our girls’ Spring Break. In the future, I hope that we can plan family vacations (or even staycations) during Spring Break week, but with our looming tax debt ahead, that’s certainly not in the cards this year. Instead, we’re lucky to be able to hodgepodge together some childcare without having to pay extra to a babysitter. Hubs has class Mon/Wed (but is available other days) and I teach on Tues/Thurs (but am available other days), so between us, we’ll be able to always have one parent home with the kiddos.

I’m still on operation minimal-spending, too. It’s not a complete spending freeze because we still have to purchase essentials like food, fuel, etc. But I have been extra mindful about every dollar being spent. As an example, one of my daughters lost her water bottle for the second time this school year. Last time, I just jumped on Amazon and bought her a new one. This time around, I’m making her take my water bottle as a back-up. I explained that we can’t just get something new every time we lose our old item. It’s been a nice lesson in natural consequences and how its important to keep track of our things. It’s a bit of a punishment because my water bottle isn’t a nice or “cool” as the kid version, but at least it’s an adequate replacement so she’s not going without one. I’m really trying to scrimp and save and see if we can pay our full tax debt ourselves rather than relying on borrowing. I really want it PAID IN FULL by the deadline. I did talk to my sister, however, and if I need to borrow money from my dad it would be an option available to us. I really want to avoid this. It’s such “messy” terrain and I just don’t like the feeling. But I would be able to save the interest + penalties associated with an IRS payment plan. Something to think about, should it come to that (I still don’t have exact figures from our accountant).

In the meantime, I want to share my February 2017 Debt Update. As mentioned in a previous post, the debt payment was less than my originally intended $3,000 payment because I decided to just pay debt minimums toward my student loans so I can try to save up the extra money to put toward our IRS debt. Here you go:

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Navient - Federal 2 (unsubsidized)$11,1055.8034February82433 (all school loans, combined)
Navient - Federal 3 (subsidized)$86085.8025February
Navient - 2 (subsidized)$84966.5533February
Navient - 7 (subsidized)$71976.5529February
Navient - 8 (subsidized)$63726.5525February
Navient - 9 (subsidized)$84976.5534February
Navient - 10 (unsubsidized)$98056.5519February
Balance Transfer Student Loan #2$14000% (through Sept 2017)$800February$7650
Balance Transfer Student Loan #3$45940% (through October 2018)$0N/A
Medical Bills$43700% (must be paid by April)$1216February$9000
Balance Transfer student loan #1$00% -Paid off in March 2016$5937
PenFed Car Loan$02.49%-Paid off in January 2016$24040
License Fees$02.5%-Paid off in April 2015$5808
BoA CC$07.24%-Paid off in June 2014$2220
Mattress Firm$00%-Paid off in May 2014$1381
Wells Fargo CC$013.65%-Paid off in May 2014$7697
Capital One CC$017.9%-Paid off in March 2014$413
Totals$70,444 (Jan balance = 72,560)$2215Starting Debt = $145,472

This month (March), I’m putting less toward the balance transfer card – only $400 instead of the $800 I gave in February. I do NOT want to add “IRS” to the debt spreadsheet, so I’m just stockpiling money in hopes we can pay them their money and not move backward in our debt progression. That will mean lower debt payments for the next couple months (March & April). Even small progress is moving in the right direction.

Have you had any financial set-backs lately?

 

 


Well Crap

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It’s been a long time since we’ve had a major financial set-back. A really long time.

In fact, everything has been going rather smooth over the course of the past year or so. Income is up, outflow is down, we just hit the half-way point in our debt reduction journey. Life is good!

Until…..tax time.

We met with a CPA on Friday. Turns out we didn’t have all our sh-t together so we have to round up the last of our documents and get them over to the office early next week. So we don’t have official numbers, but it’s looking like it’s gonna be bad. Like….possibly in the 5-digits level of “bad.” Yeah. We may owe the IRS to the tune of over $10,000. How the f do we owe so much? I don’t even know where to begin.  I  thought my payments through my full-time job would help offset things more than they did. Clearly.

We have a LOT of deductions to claim. We also have tax credits we can claim. We’re not out of hope.

But it felt like I’d been punched in the gut after our CPA meeting. We don’t have $10,000. Not in cash. To owe that much would officially move us BACKWARD in our debt progression. The first backward movement since we started our debt payoff process nearly 3 years ago. We’ve had months of stagnation, but we’ve never gone BACKWARD. Never ADDED to our debt (mortgage not included). But my plan (to have cash or put it on a credit card to buy us an extra month) isn’t going to work if we’re talking about that much money.

We’re scrambling to think of a plan so we can pay with cash and not have to set up a payment plan (accompanied by penalties and interest) with the IRS.

In the meantime, we’ll be having another meeting (or two) with the CPA to figure out exact numbers and the best course of action. I’ve also suspended all non-essential debt-payments so we can pile up some cash. Unfortunately, given my recent agreement with the medical bill place, I’m committed to minimum sized payments of $1215/month through April. That, in addition to my minimum student loan payments, puts us at a minimum of about $2000/month. We’ve only been budgeting $3,000/month toward debt and having a minimum payment of $2000 only leaves us about $1,000/month of “wiggle room” to try to stockpile cash for our upcoming IRS debt payment. It’s not nearly enough. Particularly if we owe in the tens of thousands of dollars. omg. Just saying it makes me sick to my stomach. I hope to God it doesn’t turn out that bad. But, as the saying goes, hope for the best and plan for the worst. So all non-essential spending is DONE. In the meantime, we will hoard and stockpile money as best as we can. We do have an EF ($5,500) and a couple various savings accounts. Though it’s a bit like stealing from Peter to pay Paul. It’s certainly not ideal. But neither is the thought of acquiring more debt. It gives me a headache to even consider the thought.

Many of you had warned that we should beef up our EF now that we’re homeowners. This wasn’t the intended purpose (most commenters were thinking more in-line with needing to repair/replace an old roof or HVAC, etc.)….but now that we’re in this situation, it’s sure making me think about how great it would be to have a full $10,000 EF. This IRS tax problem would be solved (and then the “problem” of re-stocking the EF is much easier and less stressful).

So that’s my “well crap” update. I will bring you a February debt-update (which, as mentioned, is lower than the originally planned $3,000 due to the need to save all non-essential payments for our upcoming tax bill). In the meantime, I’ll just keep putting one foot in front of the other. Hoping for the best. Preparing for the worst. Ugh!


Tax Time!

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It’s that time of year again…TAX TIME!!!!

This year I’ll be responsible for getting the taxes done for two households:  my own and my father’s (side-note: my dad has frontotemporal dementia, as explained here). Last year at tax time, my brother physically went with my Dad to an H&R Block to have his taxes done, at his request. It worked out, but was a whole mess because then my Dad lost all of the tax paperwork after-the-fact and it’s been a huge pain as I am the person who handles all of his finances. I really could use those year-end statements!!!

This year, given another year of progression of his cognitive impairments, my dad no longer cares about his taxes so I can handle them entirely myself without needing to include him (this is always a tricky balance because he cannot be in charge of his own finances, but he still wants to have some oversight and say in how things are handled. It’s totally understandable, but presents a challenge since he doesn’t have the mental capacity to fully think through financial decisions, etc.).

For our own household, we’ve either done our taxes ourselves (in years past) or used H&R Block, too.

This year, I want to do better. I’ve never been a huge fan of the cheap drop-in type of tax places. I want to hire a CPA that we can have an ongoing relationship with. Someone who knows our finances and is knowledgable enough that they can make recommendations (e.g., donate $X or contribute $X to whatever tax-advantaged account, in order to save $x in taxes) and know all the little ins and outs of tax laws. I want to pay what we owe, but also to limit our liability in whatever (legal) ways are possible.

Also, there’s the whole issue that I live in Arizona and my dad lives in Texas. I’m flying back for a couple of days in March to handle some of my Dad’s affairs (I will be scheduling meetings with:  an estate attorney, a CPA, and a financial advisor). I’m assuming my Dad’s CPA needs to be someone physically in Texas, given that state-level tax laws are obviously different state-to-state.

Here’s my issue – I have NO IDEA how to find a reputable CPA. None. So I come to you all, as you are way more knowledgeable about this than I am. How do I find a really good CPA? Where would I even search? Google? Yelp? Help!

And as a side note….I’m pretty nervous about this year’s taxes. Gulp! The past couple years I’d been paying estimated quarterly payments so our tax liability in April was pretty minimal (usually about another $1500ish or so). This year, I haven’t done any estimated payments at all. UGH!!! We have made some hefty tax-credit approved donations so our state tax liability should hopefully be zero (knock on wood). And I’ve had taxes removed from my full-time paycheck so hopefully that will help offset the burden of what we would otherwise owe. But, we’ve had a lot of income that hasn’t had any taxes removed (both hubs’ business income and my part-time contract based job do NOT have taxes removed from checks). Sooooo, pretty sure we’ll end up owing a pretty penny.  I’d like to get our taxes all figured out by mid-March so we have March and April to try to gather up our funds and hopefully pay the IRS in full so we don’t end up having to pay interest and penalties, etc. Worst case scenario, we could pay by the mid-April deadline on a credit card, which would buy us one extra month to pay off everything in full (since purchases made in April wouldn’t be due until May. Note: I NEVER carry a balance on my credit card!! Any purchases made on the card are paid 100% in full by the next month’s due date). That would allow us THREE months to spread the IRS tax bill over. With how high our income is, we should be able to scrape up the funds. But it also depends on how high our tax debt is. NO FUN!!!

Have you done your taxes yet for 2016? Any tips on finding a great CPA?


Ashley’s January 2017 Debt Update

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First, thanks for all the great comments and advice on my Medical Debt Collector Dilemma post!

If you haven’t read the comments, then I’ll give you the update:  I was able to negotiate our medical bill down into 3 equal sized payments to be paid across the next 3 months (February through April), and then the medical debt will be GONE and nearly $2,000 will be forgiven. Some commenters noted how this will ding our credit, but seeing as we’re unlikely to be needing any new lines of credit anytime soon, I’m not too worried about the ramifications. I feel like we’re pretty well “set” with our current debts (great mortgage rate, good credit card balance transfer options for paying off student loan debt) – we won’t be adding any additional debts, hopefully EVER!

I’m kind of excited about being rid of this medical debt. We prioritized it below everything else so far simply because it was at a 0% interest rate. But with the offer to forgive $2,000 of the debt, it had to be bumped up to the top of our priority list (which will change the “debt payment” proportions that I had just posted in our 2017 budget. Oh well, budgets need to be flexible!).

I know there are strong feelings on both sides of the fence regarding whether it is morally “okay” to negotiate down debts as opposed to paying the bill in full. We would have paid the bill in full. That was always our intention. But we also weren’t in any hurry about it with so much student loan debt racking up in excess of 6% APR. The offer to settle for less than was owed was solely initiated from the medical debt collection agency, itself. So I feel like it was a fair transaction. The medical company will receive their payment (much sooner than they would have otherwise, at that), and we will soon be able to cross off one more debt from our  list of debts!!!

One other thing I wanted to mention was regarding credit card balance transfer options. When I realized I would be unable to refinance my student loans away from Navient with one of the big/respected student loan consolidation companies, some of you recommended continuing to do credit card balance transfers. So I applied for a new credit card and promptly transferred another student loan away from Navient. Again – a super controversial thing in the world of debt repayment. I wouldn’t recommend this option for everyone, but I’ve been doing it a couple years now and have had great success with it. I literally only use the credit card for balance transfers (it’s not even in my wallet – it would otherwise be cut up and destroyed because it serves no purpose otherwise). So now I’ve got TWO credit cards designated specifically for doing balance transfers. The balance transfer fees have been low (between 2-3%) and I receive 0% APR as long as balances are paid in full by the due date (which I closely track and monitor and have never had a problem with). So….it works for us. Unconventional? Yes. Would I recommend it for everyone? No. But it’s working for us.

And so with some explanation of our debts (and, specifically, the new credit card balance transfer debt you’ll see), I present to you January’s Debt Spreadsheet:

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Navient - Federal 2 (unsubsidized)$110985.8042January82433 (all school loans, combined)
Navient - Federal 3 (subsidized)$86245.8025January
Navient - 2 (subsidized)$85316.5525January
Navient - 7 (subsidized)$72266.5521January
Navient - 8 (subsidized)$63986.5519January
Navient - 9 (subsidized)$85316.5525January
Navient - 10 (unsubsidized)$97726.552018January
Balance Transfer Student Loan #2$22000% (through April 2017)$800January$7650
Balance Transfer Student Loan #3$45940% (through October 2018)
Medical Bills$55860% (must be paid by April)$25January$9000
Balance Transfer student loan #1$00% -Paid off in March 2016$5937
PenFed Car Loan$02.49%-Paid off in January 2016$24040
License Fees$02.5%-Paid off in April 2015$5808
BoA CC$07.24%-Paid off in June 2014$2220
Mattress Firm$00%-Paid off in May 2014$1381
Wells Fargo CC$013.65%-Paid off in May 2014$7697
Capital One CC$017.9%-Paid off in March 2014$413
Totals$72,560 (Dec balance = 75,171)$3000Starting Debt = $145,472

When I first started blogging back in April 2014, I had $145,472 total debt.

As of January 31, 2017, with a margin of under $200, we have finally hit our half-way mark! We now have $72,560 in debt.

Oh my gosh, guys! I can’t tell you what a huge milestone this is for us! I’ve been blogging for nearly 3 years and we have JUST NOW hit our half-way mark in terms of debt reduction. We likely have another 2.5 years to go (maybe less), so we’re over half-way in terms of the time spent in debt reduction mode. I just cannot even believe it. All the changes in the past three years, all the sacrifices, all the splurges, all the savings and the spending and the analyzing numbers over and over and over again. It just feels fantastic.

I know some have commented that the second half of debt reduction would just fly by. That as soon as we hit the half-way “tipping point” things would start snowballing and debt would just melt away.

I’ve got so far still to go, but I am hopeful and excited about the future!

And I want the debt gone sooner than our projections have it. I want it gone yesterday. I’ve been doing a lot of thinking of ways to reduce savings categories (temporarily) in order to throw more toward the debt. And there’s still some work stuff up in the air that will impact this whole process. I’m optimistic. It’s hard not to be. I may not be able to quite see the light at the end of the tunnel yet, but at least we’ve crested the top of the mountain and are about to make our descent. I can’t wait for the journey downward!


Medical Debt Collector Dilemma

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One of the debts on our debt spreadsheet is from an outstanding medical bill we owe. Before this month’s payment, we owed $5611.00. We’ve been making payments for years but have only been paying the minimum $25/month (with 0% interest). At some point we always knew we’d obviously pay more. But it was a lower priority when we have other student loan debts racking up over 6.5% interest!

Well, just this week we received a bill from the debt collection agency stating:

“If you will pay $3647.15 of your balance by phone using a debit card, credit card, or check by phone, our client has agreed to adjust the remaining $1963.85 and you will have a zero balance.”

Well, I thought it was a good deal. I immediately showed hubs.

“Hey, should we just pay this debt off and be done with it?!”

His thought is: no. We should continue making our minimum $25 payment as normal. He thinks that eventually they’ll come down even more. While we focus on my student loans we’re in no hurry with them. It can sit and wait (as we continue making our $25/month payments). They’ll be there when we’re ready to negotiate.

As a little backstory, at the time when we first incurred the medical debt (back in December 2013) I called and tried to negotiate settlements if I could pay the debt in full. We owed several different medical entities (I wrote about how hubs had a weird health crisis in one of my very first posts on this blog). When I called around, only one (0ut of maybe 4 or 5) would even negotiate. I’ve since heard Dave Ramsey talk about this on his radio shows: few medical entities (or collectors for medical entities) will negotiate and settle debts. I guess they’re less likely to do it than a major credit card company, for example.

So the fact that this company is offering a settlement now, I thought, was HUGE!

But then, I got a call today on my cell. It’s the debt collection company (who has never once tried to contact me before). They asked how we planned to pay our bill. I told them that we’ve been paying our bill and planned to continue the way we have been. They said that, no, we were not actually on a payment plan. That we needed to pay the bill in full. And then they started trying to confirm information (employer, address, etc.). I confirmed our address but, when they asked about employers I said I was uncomfortable talking about that and they got all huffy and ended up hanging up on me. No mention of the settlement offer that they had just mailed.

Soooo…what the heck, guys???

I don’t know what to do! I’ve heard many times on Ramsey’s show about nasty debt collectors calling employers, etc. I’ve literally never had a call from this entity before and have been making faithful payments. Now I don’t know if they’re lying, or trying to scare us into paying, or what?! And I was about to pay in full to receive this settlement, but now I don’t know if that’s a terrible idea – like if they’re trying to take advantage of us. For instance, if we pay with a debit card and then they try to withdraw more than we agreed to, etc. Or what if I’m being overly dramatic? I just have absolutely NO experience with debt collectors. And then we get this letter, and now this rude call, and now I’m worried about my boss getting a call… What the heck!?

Thoughts? Advice? Words of wisdom?

*****UPDATE: I’ve written some relevant updates in the comments section. I’ve now received a new/updated settlement offer (see comments). Looks like I may be getting rid of this debt sooner rather than later, after all! ******


Financial Goals: 2017 & Beyond!!!

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For the past couple of years I’ve made our family’s financial goals public, sharing them with you all and tracking along throughout the year to see how we did (see 2015 goals here and 2016 goals here). We met our financial goals the past two years and hope this year will be no different.

2017 Financial Goals:

  • Pay $30,000 Toward Debt. This may seem like no big deal since we had this same goal last year and met it, no problem. But this year will be different because our salary is going to decrease a bit. Hubs is going back to school and mid-way through the year I’ll be leaving my part-time job. I’ve kept hinting that I have some news on the job front but I’m still not in a place where I’m able to share it. Probably within the next few weeks I’ll be able to elaborate on this. Overall, though, our salary will be down this year compared to last year.
  • Fully Fund A Roth IRA. Our first two years of debt payment were narrowly focused on debt payoff at the exclusion of all else. When I started my full-time job in August 2015, a 7% retirement contribution was required (and is matched by my employer). In the past year (we’re almost at the 3-year mark for our debt payoff journey), I’ve tried to add in a little extra balance. That means more of a focus on savings for retirement and on spending a little bit for fun (e.g., monthly date nights, kids’ activities, etc.). I’m still continuing to do my mandatory pre-tax retirement contributions (it goes into a 401(k) type thing, but the education equivalent…I think it’s a 401(c) or something??) I’ve also tried to separately put a little money into a Roth the past couple years, but we’ve only managed to do about $1,500 or $2,000ish each year. This year the goal is for us to have 1 fully funded Roth at the maximum allowance (I believe it’s still $5,500). In the future we’ll work toward having 2 fully funded Roths, but I think just having 1 will be a good goal for this year, as we still work diligently to reduce our debt.
  • Mom & Dad Getaway. This is still a very new and not fully fleshed out goal but one that has been floating around in my mind for quite awhile. For newer readers, hubs and I have twin 4.5 year old girls. One of our favorite (pre-baby) passions was to travel. We used to travel a LOT. In fact, that’s one of the reasons we have in our mind for why we want to be debt free: so we can have the freedom to travel! In February 2015 we set a goal to go on a cruise for my Mom’s 60th birthday and we did! We saved up for over a year and in April 2016, we went on a family cruise. It was a lot of fun and I’m glad we did it. But it kind of re-kindled this flame in my heart – this desire to travel with my husband! In the past nearly half-decade since we’ve had kids, we haven’t had a single overnight away from them. Not one. We love our kids, but I also think we’re now at the point that it would be healthy and good for us to have a little mini-getaway solo. It likely wouldn’t be for long (we’re thinking 4 days/3 nights) and it likely wouldn’t be extravagant (maybe drive out to San Diego since that’s only a few hours drive). So I’m sure it won’t be as costly as the cruise was. We don’t have defined or “set” plans in place, but we’ve talked to hubs’ mom about it and she’s volunteered to come out to Arizona and watch the girls for us so we wouldn’t have to be paying for childcare. I don’t know when this would be (maybe over summer; maybe not until fall), but it will happen sometime in 2017. It needs some work to make the goal more defined, but it’s a definitely goal we have for this year.

 

I know this is a get-out-of-debt blog, so some of the things I talk about (e.g., savings, spending) may be a little controversial. I am proud, overall, on how frugal we have been and how much we’ve been able to reduce our debt. I think ours is a success story. If we had less debt, we may have just been able to go gung-ho the whole time (we did for a solid 2 years!!!) and just eliminate the debt in its entirety. But with the amount of debt we’re grappling with, I didn’t think it was possible for us to be “gung ho” for a solid 5-6 years. I knew we would end up falling off the wagon. Therefore, we’ve purposely built our budget in a way where we can SUCCEED. That includes building in a little “wiggle room” for a monthly date night, weekly dance class for the kids, and having friends over for dinner every couple of months. These “life” things are important to us and we wouldn’t be able to make it through to the finish line if we didn’t allow them.

It’s been so encouraging to watch our debt shrink. We now owe $75,000 according to our most recent debt update. Here are our long-term goals:

2017: $30,000 toward debt payments

2018: $30,000 toward debt payments

2019: DEBT-FREE by the middle of the year!!!!

2019 still seems so far off! But then, we started this journey in 2014 and that feels like it was just yesterday! So I know 2019 will be here before we know it. We’re over half-way there!!! I hope you’ll continue to stick around while we’re on our journey. And I wish you luck on your journey as well.

 

What are your 2017 financial goals? Do you set annual goals for yourself and/or your family?


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