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Posts tagged with: resolutions

Year of Becoming an Adult: October Update

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Just last month I told you guys that we’d completed 2 out of our 4 2015 goals on our Year of Becoming an Adult list. Here’s where we stand now:

  1. Wills: Completed a couple months ago.
  2. Life insurance for hubs: I’d mentioned in my last update about hubs losing a bunch of weight (50 lbs, to be exact!!!) He still wants to lose about another 20, but decided to go ahead an initiate the life insurance process now. I remember it taking two or three months last time around (not a quick process), so hopefully by getting the ball rolling now he’ll be able to be insured before the end of the calendar year. And, just to show you how far he’s come, check out this incredible before/after photo comparison (note: I forced him to do this –he’d be embarrassed to do a mirror selfie himself; I also forced him to wear the same shirt for comparison purposes. The difference is incredible, right?!?! So proud of him!!!).

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  1. Open retirement accounts: We opened a Roth IRA back in April, and I also started funding an additional account through my work (a 401a) in July. I’m investing 10% of my paycheck into the 401(a) + my 7% employer match, plus still doing the $100/month toward the Roth (I know its not much, but better than nothing!)
  2. Open college savings accounts for the kids: I finally did it! I opened two 529s (one for each child) and have set up an auto-deposit of $25/month for each of them (a total of $50/month). Once we’re further along in the debt-payoff process we may increase contributions a bit, but I’m happy with where they’re at for now. It’s not much, but every little bit helps.

It’s been a crazy whirlwind of a year! Some serious happy times and some serious lows have been had. And in the last few months as I’ve transitioned back into full-time work I feel like I’ve let a lot of these “household” type tasks fall to the wayside as I’ve been trying to balance my work obligations and father caretaker tasks.  I’ve alluded to this without outright saying it, but I’ve taken over 100% of my father’s financial matters. Since he owns two separate properties, it feels like I’m essentially running THREE households myself. Hubs and I still have our budget meetings so its not like he doesn’t contribute to our household, but I’m still the person who balances the YNAB budget and physically pays the bills. It’s been a lot to take on, but I’m of course happy to help my Dad and just trying to stay on top of everything. I’m eternally grateful for the accountability I’ve received here!!! I’ve always done Excel budget spreadsheets, but I don’t think I was as uber-careful about where every single penny was being spent until I started blogging here (and, really, YNAB has been a life-changer in that regard. Check out my review if you’re interested.) Without the organization I’ve gained since I started blogging here, managing 3 separate household budgets would be really tricky. I mean, its tricky either way, but it’s certainly much easier being organized.

At any rate, in spite of the haze that this year has been (can’t believe its already mid-October! Where is 2015 going!?), I’m really glad to have now solidly accomplished 3 of our 4 “Year of Becoming an Adult” goals and that we’re well on the way to completing the fourth as well.

Now….if we can just squeeze in some debt payoff milestones we’ll be set! ; )

Have you ever tried YNAB? What did you think?

Do you do goals or resolutions for the year? How are you doing on your 2015 goals?


The Year of Becoming an Adult

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Hubs and I have been talking a lot about different life things lately.

This year has been a big turning point for our family. We’ve really committed to the decision to get rid of our debt and we’ve made huge improvements in this area (yes, we still have an enormous amount of student loan/medical debt, but we’ve eradicated all credit card debt and drastically slashed our license fee debt, while also lowering our interest rate and making big progress on our car loan debt).

And as the end of 2014 draws near, we’ve been discussing big goals for next year. After some  discussions, we have decided to declare 2015 The Year of Becoming Adults!!!

Now, this may sound strange. Yes, husband is 32 and I will be turning 31 soon (my birthday is on New Years Eve!), so if you look at age you would certainly think of us as “adults.”

But you guys know all our dirty little secrets. You know we’re not full-fledged adults yet….at least not from a financial perspective.

In 2015 we’re hoping to change that!

Right now (and through March 2015 – one full year of blogging), I am going to stay steadfast in putting every extra dollar toward debt. I’ve talked before about how at that time I might reassess things and move at a bit slower pace. We have decided that with at least some of our “extra” money (currently put toward debt), we are going to make some big strides toward becoming more adult.

  1. First, we’re going to make a will. This is not going to be fun and I am not looking forward to it. Part of the reason we decided to make 2015 the year-of-adulthood is because I don’t want to deal with this type of paperwork as the holidays approach (maybe not an adult way to handle the situation but, hey, I’m working on it).
  2. Second, husband will get life insurance (hopefully!). I have my life insurance all in place, but we have had a LOT of struggles with getting him insured. After some talking, we’ve decided to put it on hold right now. Hubs’ medical mystery illness (discussed here) occurred at the end of 2013 so we want to get past the 1-year mark, hoping that this will make a difference and improve our chances of getting him covered. We’re also probably going to go with a different company than the one we’ve been dealing with, but we’re still looking into options.
  3. Third, we’re going to open retirement accounts. You may recall that after we paid off our last credit card I created a new savings category called “savings for Roth IRA.” So I already semi-started this by at least setting money aside on a monthly basis. In 2015 we’ll actually open an account and get this all started on an official basis.
  4. Finally, we’re going to open college savings accounts for our girls. We haven’t talked exact numbers yet (regarding #3 and #4), but at least some money will be set aside monthly (probably in a 529) as a college fund for each of our children (we have 2).

I know this all flies in the face of a Dave Ramsey-eque model of debt eradication.

For any who are unfamiliar, Dave suggests having only a $1,000 emergency fund while working on eradicating debt. He also advocates stopping contributions to retirement and kids’ college accounts while in debt reduction-mode.

Honestly, though, the idea of not doing these things (i.e., saving for retirement especially, and putting at least some money aside for college) scares me. We just came up with our grand 2015 vision and haven’t talked numbers yet. Plus, its difficult to talk numbers when our income is so variable and I’m on the job market and could potentially have a big change in income in the coming year. This is something we’ll have to sit down and discuss at length in the coming months.

But numbers aside, I just wanted to let you guys know about our plans. I know these thoughts and ideas are going to ruffle some feathers because the goal of this blog is debt-eradication and switching gears from full steam ahead to a lower gear of debt-reduction is not necessarily a popular decision.

I haven’t decided what I’ll do come March 2015 in terms of blogging. I love the support and advice I get from you all and if readers are interested in me continuing at that point (with the knowledge that debt reduction would be done at a slower pace) then I may continue to write and contribute. But I don’t want to upset readers and/or cheapen the mission of this site in any way by taking sole focus off of debt-reduction.

We’re not at that point today so it’s not as if any big decisions need to be made right now. I just feel like I want to be honest and open with you all, as you have been so supportive of me on this journey. I want you to know where it and I, as a person, are headed.

Do you have any big goals or resolutions for 2015? What financial goals are you currently striving toward?


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