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Weekly Debt Update #22- Life After Debt

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This past week, I’ve done some thinking on what life after debt will be like once all my student loans are paid for. It’s actually something I think about quite often, well not really think per se, more like daydream. So this past week I started formulating plans of what I’m hoping to accomplish. I know a couple things I want to do for sure:

  1. Take a vacation. Not entirely sure where, yet, but I would love to do a 4 or 5 night stay at Universal Studios Orlando. I’m a big theme park guy and I haven’t been here in 15 or so years. From what I’m hearing about the new Harry Potter lands and all the money Universal is investing, the park is on par with Disney, or may even be better. I’m going under the assumption that for me and GF, it’s going to cost about $5,000, which I should be able to save up within a couple months of being debt free.
  2. I want to save up a larger emergency fund is a cash account. I just don’t know how much. Rule of thumb is 3-6 months of expenses. My expenses are quite low, so I’m looking at keeping $5,000 in this emergency fund. I have $2,000 right now, so having that extra $3K will definitely give me more piece of mind.
  3. I want to increase how much I put into paying off my mortgage. But I only want to do it by a slight margin. I’m paying $150 a week currently to make a monthly payment of $600. I’d like to increase my payments to $200 a week.
  4. I’m going to decrease my 401K contribution to the minimum (4%) to get the company match. I’ll use a fairly good portion of my after tax income to fund an investment account for a, hopefully, early retirement. I’d like to do between $300-$400 a week. This is a big one, since I want to save up a pretty large nest egg, but there’s a ton I feel like I’m putting off (like home renovations) that I could do with an extra $400 a month.
  5. I’ll definitely going to increase our fun having and my week allowance.

It seems like I have more plans than paycheck right now, so I’m going to really look at this and determine what my future priorities are. I’ve felt that I’ve wanted to early retire for a few years now, and that hasn’t changed. Thinking about it, I think retirement may be the wrong word to use here- I really just want to feel that I have options and choices- where, when, how much and if I want to work. Of course saying all this, I don’t have any children at the moment either. It’s easy to sit here and think of all these nice things to do being a non-married, childless adult. All this could change in an instant!

AS for my debt payments made in the last week, here it is:

Loan NameInterest RateOriginal Balance- May '09Current BalanceTotal Paid OffPaid Since Last Week
Sallie Mae 015.25$27,837.24$23,719.92$4,117.32$57.03
Sallie Mae 024.75$22,197.02$18,604.04$3,592.98$47.52
Sallie Mae 037.75$20,692.10$0.00
$20,692.10$0.00
Sallie Mae 045.75$10,350.18$4,455.68$5,894.50$854.91
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$46,779.64$63,808.02$959.46

Weekly Debt Update #9- Over the Hump and Future Plans

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Hope everyone had a great weekend and a great start to the week!

I’ve officially paid off more on my student loans than I owe! I can’t describe just how good that feels (but I can try- amazing!) but I still have a lot of work to do…approximately $55,000 of work. So…I don’t really feel much need to celebrate anything, just take a nice long look at how far I’ve come, then put my nose back to the grindstone.

Here’s what my balances look like as of the 21st (my Navient auto-debit date):

Loan NameInterest RateOriginal Balance- May '09Current BalanceTotal Paid Off
Sallie Mae 015.25$27,837.24$24,224.78$3,612.46
Sallie Mae 024.75$22,197.02$19,006.27$3,190.75
Sallie Mae 037.75$20,692.10$0.00
$20,692.10
Sallie Mae 045.75$10,350.18$7,570.60$2,779.58
Sallie Mae 055.25$6,096.03$4,276.91$1,819.12
Sallie Mae 06 and 074.75$6,415.09$0.00$6,415.09
Sallie Mae- DOE 015.25$5,000.00$0.00$5,000.00
Sallie Mae- DOE 025.25$3,000.00$0.00$3,000.00
AES6.8$9,000.00$0.00$9,000.00
TOTALS$110,587.66$55,078.56$55,509.10

Since last week, I’ve been doing some thinking about what I’m going to do after all my (non-mortgage) debt is gone. I know my number one goal is going to save up 1 years worth of expenses. Basing the 1 year on my current expenses, less the student loans, since I’ve lived my entire adult life on a bare bones budget, I have annual expenses around $15,000. If I throw all the money that I put onto my debt into a savings account, it should take me between 5 and 6 months to do this. I also know that after I save this money I want to catch up my retirement that I missed on this past year, which will go to a Roth IRA- roughly $5,000.

So that’s what I know I want to do for sure. After not, I’m not quite sure at all. I developed a future budget that I could use:

Future Budget

Since I haven’t done any spending in the past few years, I’d like to have budget lines for a future vehicle and/or repairs for my current car (which is already at 86K miles), clothing, and some travel. HOWEVER, I also want to pay 2 mortgage payments monthly and continue to save. One of my biggest inspirations to really start hammering the debt was/is Mr. Money Mustache, so I’d really like to continue living a fairly frugal lifestyle while continuing to save as much as possible. Well- I can’t have it all, so I think this budget is a good balance between spending and saving. And the good news is this is all based on my current pay, which, hopefully, I should be making more in a couple years. I also based my income on the fact I’d like to contribute 5% to our company’s 401K plan to get the most match as I can.

I’d like to hear from people in comments on what you did after you paid off debt- were you to worn out from the payoff that you went into spending mode, or did you continue the lifestyle?

On a budget note, here’s where I currently stand in March:

Weekly Update #9

 

There’s couple of big items that came up this month (which weren’t all that unexpected): 1) I had a crown put in at the dentist a couple weeks ago. I have insurance, but I owe %50 out of pocket for this type of work. The cost- $397.50. 2) I filed and paid my local taxes. I knew when I withdrew my government retirement account (back in September) I would owe state and local taxes on it when I filed in the new year so I knew this was coming. I paid $700 to PA last month and $310 to the city of Erie over the weekend. 3) I had to take our one dog to vet a couple of weekends ago to have them look at an ear infection and to get her vaccinations. The costs- $132.02, but me and my GF have a plan set up- if it’s “her” dog (the white one, Harlow) that she brought to the relationship, the GF will take care of the vet bills and vice versa for my dog (Bubba, the black one). Since I took Harlow in while my GF worked, she wrote me a check for the visit that I just deposited yesterday and, thus, isn’t reflected in my budget, yet. 4) I had to put down a $100 deposit for the B&B I’m taking my GF to in April to make up for my V-day gift to her (the poorly timed concert tickets :/). I didn’t expect this since I didn’t remember putting a deposit down the last time I booked a room. O well, it just means I’ll pay less when we check out.

I also spent more in the groceries/eating out category than I normally do. I had to go into work for a couple of weekends this month, so I bought breakfast for myself on the way to make it easier to go in. I also had a surprise visit from one of my best friends (who lives in North Carolina) over this weekend. Didn’t spend to much, but I treated him to lunch at Moe’s while he was passing through town. It only cost $25 and he has paid for me more times than I can count in the past, so I owed it to him.

My slush plan is fairly low, much lower than I’d like it to be:

Slush Fund= $1,129.84 (plus $132.02 when the check clears)

I have future plans to fill it back up, but I’m not going to do anything at the moment, just continue staying the course for now.

Hope everyone has a fantastic week!


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