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Resetting Our Financial Goals for 2020

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I typically set a few goals at the beginning of the new year, and this past January was no different. Except this year it was tough. I had a hard time thinking of what I wanted to focus on. I couldn’t think of where I wanted to go, or what I wanted to accomplish. I just couldn’t set a clear vision for 2020.

Perhaps the universe was preparing me??

Thinking back, it’s crazy to me how much has happened. Back on New Year’s I had no idea what “quarantine” and “murder hornets” really meant.

Setting Financial Goals

We did end up making some financial goals for the year for our family. One of them was to pay off $30,000 of our debt this year.

In 2019, we paid off almost $42,370 of our student loan principal, so $30,000 seemed very doable. We weren’t confident on what our tax return would be this year, and my husband wanted to get back to contributing to our retirement later this year. But $30,000? We could work hard and do that. I was taking on more freelance work and our business was growing.

However, I think my Magic 8-Ball would say, “Outlook not so good.”

The pandemic and resulting loss of work really messed with our goals. It definitely slowed our momentum. Like I mentioned a few weeks ago, we took the forbearance from Earnest for our student loans, so we made zero payments in March and April. Those little skips really set us off course. Interest stacked up and the principal went no where. I made a $2,500 payment in May that didn’t even cover all our interest.

Tracking Our Debt Payoff

Thanks to the BAD community, I now see we accumulate about $1,100 of interest a month (or about $37 a day… gag). We decided we could pay $5,000 from our tax return towards our debt (the rest of the tax return is going into savings just in case we have to shut down our business again).

That payment went through yesterday, and I legit whooped and hollered when I saw it on my screen:

Debt Progress for our Student Loans

See that drop in the June entry? That’s progress!

After months of sitting at $287,734.51, our principal finally dropped to $284,135.62. That’s a 1.25% change! I know it’s silly, but it’s just so much better than 0%. Seeing progress is so energizing.

Resetting Our Financial Goals

It’s undeniable that we have to reset our financial goals for the year. It’s nearly half-way through 2020 (hallelujah), but we’re far from meeting our debt payoff goal (wah-waahhh). And—this is a terrifying thought—we still don’t know what the rest of the year will bring.

But I don’t want to give up on our goals quite yet. So at least I can say that as of today, we’re on our way: we’ve paid off $6,796.63 so far this year, and there’s still time to catch up a bit more. My latest freelance job will pay more, and we’re getting a bit of cash back here and there, like a preschool reimbursement because we couldn’t go the last 3 months.

I think we have to give ourselves some grace this year, but I’m not ready to quit yet.

Hope’s Debt Update – June, 2020

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It’s an exciting day in my world. A debt update with some real progress!

Creditor
Balance

(06/10/2020)
Interest
Min. Payment
Student Loan #1$11,674.482.88%$0
Student Loan #2$19,561.922.88%$0
Honda HRV$17,631.11
3%$250
Total$48,867.51$250

As I mentioned in a previous post regarding my student loans, I have finally taken a good hard look at my Student Loans and decided to break them down into the two different loans. I am focused on paying off the smaller of the two loans.

Since that last post, I have paid off $2,455 of the smaller loan. And I paid $197 toward the larger of the two. (My goal was to pay the accrued interest.)

I’ve continued to pay on the car loan but at a much slower rate. I am now paying $250 per month.

Work continues to go well and I am very dedicated to paying off this debt as quickly as possible.

Per my previous post, my goal is to pay off the smaller of the two by May, 2021. I also plan to keep paying a little bit each month toward the larger loan in order to prevent it from growing. And of course, until a decision is made about the car, I will keep paying for it. (Princess’ dad continues to say he is going to get her a car…but no timeline.)

More updates to come…Sea Cadet has moved onto his own auto insurance policy, History Buff has plans to and I’ve been able to cut our phone costs. *Doing a happy dance over here*