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Posts tagged with: dave ramsey

Ashley’s December 2015 Debt Update

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Here we are on the last day of the month/year. How has your December been?

Aside from a couple little financial hiccups, ours has been fabulous! During the school break I’ve actually unplugged for full days at a time (a rarity, especially when you work online!) and its been great to just be around and enjoy family without constantly checking email!

But let’s not forget why we’re here. We had some lofty goals in terms of debt repayment that I wasn’t sure we’d meet this month (in fact, I have said several times we probably would not meet our goals).

After all the dust settled and the paychecks had been cashed, let’s see how things shaped up this month.

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Capital One CC-17.9%-Paid off in March 2014$413
Mattress Firm-0%-Paid off in May 2014$1381
Wells Fargo CC-13.65%-Paid off in May 2014$7697
BoA CC-7.24%-Paid off in June 2014$2220
License Fees-2.5%-Paid off in April 2015$5808
Navient$82,1776.55%-8.25%$277December$80761
ACS Student Loans$85966.55%$20December$8215
PenFed Car Loan$31812.49%$1800December$24040
Balance Transfer student loan (Former Navient 1-01)$26120% (through April 2016)$400December$5937
Medical Bills$59360%$25December$9000
Totals$102,502 (Nov balance = 104,704)$2522Starting Debt = $145,472

After all was said and done, we ended up paying just over $2500 in debt this month. Our initial debt payment was actually about $300 lower than this, but I squeezed every spare penny out of the budget and was able to make an additional last-minute (December 30th) extra payment to the car loan.

Our final consumer-related debt, the car, is now at a balance of $3,181. And our overall debt balance is at $102,502. So we did NOT make our goals of paying off the car or dipping below $100k in debt this month as we had hoped. 

That being said, come hell or high water, we will meet both of these goals in January. So we’ll be a few weeks behind the initial goal, but not by much.

Another one of our 2015 Financial Goals included paying $30,000 total toward debt during the year. Here’s where our final debt payment numbers landed:

January $1678
February $1822
March $653
April $1796
May $1708
June $725
July $2125
August $2250
September $2575
October $5513
November $2751
December $2522
Total $26118

So, again, we didn’t quite meet our goal, but we weren’t terribly far off either.

Overall, I’m quite proud of how well we’ve done in 2015. Let’s not forget that hubs’ business has had a bit of a rough year. His income wasn’t as high as it was in 2014 (and he had a couple months with no income whatsoever). Plus, I didn’t start my full-time job until the end of summer, so my income didn’t increase until the second half of the year.

When I set our goals, I always like to set “reaching” goals. This means they’re not easily attainable in-the-bag type goals. They’re goals where the numbers don’t quite work and, yet, I set the goals anyway because I want something to reach for and work toward. So the fact that we didn’t quite make our goals doesn’t bother me as much as one might think (though, don’t get me wrong, I would have LOVED to reach our goals!). My point is simply that I think the goals did their job. They made us work hard to try to do something crazy – something the numbers said wouldn’t or couldn’t work. And we made incredible progress, so that’s something to be proud of.

And, I have a mini-secret up my sleeve. My “ace in the hole”, if you will.

Just as former blogger Adam posted that he and Emily are effectively debt free (see their update here), I have similar news to share. You know how every month I’ve reported that I’ve been saving money toward Cruise 2016? Well, guess what…

As of this month (December 2015), I have $3,300 in one of my Capital One 360 savings accounts for the cruise. But the next cruise payment isn’t due until February 2016. So what I’m saying is that we actually have enough liquid cash available to be entirely consumer debt-free today.

In fact, I had initially planned to “steal” from myself (from the cruise fund), pay off the car in full, and then spend January/February re-saving that money for the cruise. However, after the unexpected extra expenses this month coupled with the fact that we really have little-to-no additional savings to speak of right now (not to mention we’re still in Texas so if we encountered any problems on the trip back to Arizona, etc.) I wanted to err on the side of caution and keep that money in the bank.

That being said, mark my words:  We will be consumer debt-free in January 2016. Hopefully we’ll be able to do it the old fashioned way (i.e., using our pay to finish paying off the last consumer debt). But even if something crazy happened, we had extra expenses or whatever, and we didn’t have enough money to quite cover the full amount of debt, I fully intend to use all our available capital (including the cruise fund) to MAKE SURE our consumer debts are fully eradicated before the end of January.

So we are effectively consumer debt-free now (in the sense that we have the money to pay off the last of our consumer debt), but we will become actually consumer debt-free within the next couple of weeks.

You can imagine that this is one of the biggest things on the forefront of my mind and I basically can’t shut up about it. My family has asked if it feels amazing and, although it feels pretty good, I still think there will be a big difference once I actually transfer the funds and see zeros on the balance owed of our vehicle. Just thinking about it makes me smile. And now I’m totally “that person” because I bought both my sister & my brother a copy of Ramsey’s The Total Money Makeover for Christmas (during their $10 sale! Couldn’t pass it up!) Edited to add:  This is totally creepy, but the link to Ramsey’s book automatically appears, perhaps since it’s tagged to this post. I did NOT link it myself, nor is the link an affiliate link. In fact, it seems like I cannot remove the link without changing the wording of the post to not include the book’s name. Really weird/creepy, and I don’t particularly like that, but just wanted to be transparent that the link appears to be an auto-generated thing and I do NOT make any type of money or kick-back if you buy the book.

Just to be clear, I don’t blindly follow everything Ramsey says (as you can tell from my 2016 financial goals), but I do credit him (and Bobby Bones!) with jump-starting my mission to become debt-free. And I want to spread the message to those I love! What better gift to give than the gift of financial freedom? LOL. A bit of hyperbole (it’s not like I’m paying off anyone else’s debt), but it’s like giving a roadmap that can help others, so of course I want to share that information!

Anyway, this post has become entirely too long and I’ve got to run! New Years Eve is my birthday and I have lots of fun plans for family time, getting my hair professionally cut/colored (gift from my Mom and the first professional job in a really long time), lunch with my Dad, sparklers with the kids, etc. etc. etc.

I wish everyone a safe and happy New Years! I’ll catch you on the flip side! 😉


Dave Ramsey Motivation – New Income Streams

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Earlier this year I wrote about opening up some additional revenue streams and taking me out of the mix.  Well, I am excited to announce that I have successfully done one of the two (not the way I had originally hope, but that’s still on the horizon.)  I mentioned earlier that I had volunteered to start teaching a couple of classes for our homeschool co op.  We don’t have a computer teacher, and I certainly qualify for that, and the increasing costs of having four kids in co op classes about made me choke this year.  So I signed up and was accepted and now will be teaching two classes this fall.  Great!  That should cover all four kids’ tuition.

But as I’ve continually been seeking other ways to make more money…I applied to teach the same classes online.  And as of yesterday I was hired!!!!  So I will be teaching one class this summer and then two in the fall.  Yeah!  So I’m doubling my “teaching” income and only having to create one set of classes.  This kind of feels like deja vu since I know Ashley just wrote about doing the same thing.

I can’t say just how much money I will make with these two new sides gigs (in addition to this new job and this new job,) as I get paid by the student.    But I’m hoping it will be enough to cover the kids’ co op tuition and help speed up the Student Loan debt that I will be laser focused on when these two jobs start.

Okay, the reason for the title…I read this article I stumbled upon recently stating 5 6 things Dave Ramsey said you should do to get financial freedom and then voila this happened.  So I think that type of thinking being in my brain has helped me ferret out any and all new possibilities.

Ok, one more thing, hoping to pre-empt some questions…

How am I going to continue to homeschool my kids if I keep committing to more work? 

I hope to spend the summer prepping for the classes.  I only teach 1 hour per week and then grade projects for each class.  So if I have my lesson plans and projects all ready, I am hoping that each class will take no more then 3-4 hours per week. Thus the desire for the littles, in particular, to do some extra camps this summer so I get plenty of time to focus!

What about your existing clients?  How will this affect your work with them?

With the one client that I have dedicated hours for, I have already cleared the actual “teaching” time with them so they know I won’t be available during those hours. Since it’s max of 1 hour per day for teaching, it really just like requesting a regular lunch hour. And the grading, etc. I can do anytime, even weekends when needed so won’t bump into regular working hours.

Hope this helps.  I am pretty excited about this new side to my “career” since I’ve been doing technical training for clients for over a decades now, eek, can’t believe I can honestly say decade…and homeschooling for 6 years, I think I am ready to take this on!


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