by Hope
It’s funny. I’ve been preaching to my teams at work for years about slowing down and being more deliberate in your actions. Focus on what you are doing and do it right, the first time. It truly does make a difference especially when you’ve got a constant flow of work to do and inputs coming at you.
But I have failed to take my own advice especially when it comes to my finances.
New Job Excitement
When I got my new contract and regular income again, I just dove in. And it was great, I began paying things left and right. It was so refreshing to not be constantly stressed and borrowing from Peter to pay Paul.
Alas, that excitement is not sustainable. And when you rush and don’t focus, you make mistakes or miss things.
Now, I’m focused. I’m slowing down. And I am determined to make more thoughtful decisions, set more realistic goals. So I’ve reordered my debt payoff. I’ve made sure it’s obtainable. And rebalanced my budget to include regular and substantial savings, more taxes to pay, and giving myself a bit more buffer in my month because I was getting into trouble at the end of the month when something unexpected popped up.
July Debt Numbers
| Debt Description | October, 2023 Total | Interest Rate | Minimum Payment | Current Total | Payoff Date (Est) |
|---|---|---|---|---|---|
| Personal Loan #2 | $2,500 | 0% | $500 (beg April) | $500 | August, 2024 |
| CC – Wander | $1,630 | 29.24% | $75 | $1,402 | October, 2024 |
| CC – Amazon | $1,497 | 29.99% | $48 | $1,445 | November, 2024 |
| Dad – New Furnace | $2,600 | 0% | $0 | $2,600 | January, 2025 |
| CC – Frontier | $3,857 | 29.99% | $130 | $3,588 | February, 2025 |
| CC – USAA | $5,000 | 19.15% | $135 | $3,517 | |
| Car Loan | $19,581 | 12.69% | Gymnast Pays | $15,002 (not counted in total) | |
| Student Loans | $22,121 | 2.875% | In Deferrment | $22,659 | |
| CC – Apple** | $500 | Paid off every month | $0 | ||
| CC – AMEX | $894 | 29.24% | $0 | $0 | Mar, 2024 |
| CC – Sams | $1,106 | 29.99% | $0 | $0 | April, 2024 |
| Personal Loan #1 | $2,500 | 0% | $0 | $0 | July, 2024 |
| Total | $61,186 | $888 | $35,711 |
Go Faster
I’ve seen the comments indicating that I could go faster since I could roll the now completed debt payments into other debts and you are right. However, a couple of things…
- I am saving and investing more every month now. All my part time W2 income goes into savings. And I’ve added 10% automatic savings deposits from my large and steady part time contract gig. And I’ve increased my investing from $35 per week to $70 per week. (See Stash post.) Half of that weekly investment is going into a ROTH IRA that’s auto-invested.
- My income has increased thus my taxes have increased and I’m being overly cautious on that front. When I started this contract job, I was make $6K per month, now it’s up to $8K per month. And we are in talks for another substantial increase by the end of Q3. Taxes are substantial. I’m currently putting aside and paying almost $2,500 per month towards self employment taxes, social security, Medicare, state and federal taxes. And with the anticipation that my income will greatly increase, I want to be very cautious of not getting behind and would prefer to have a buffer.
- (added initial published) We are planning to go to Texas for Thanksgiving. The girls and I are driving. Therefore, have a budget line for that. That is the main reason there is no “payoff” in November.
I believe this plan is achievable even with any bumps in the road over the next 6 or so months.
One Note
I did remove Gymnast’ car from my overall debt total. I realize that it’s still legally mine. But we are quickly approaching a year that he has been paying it. Well, 9 months maybe. And he’s really targeting trying to pay it off quickly. And making wise choices to that end. Every once in a while, he laments the burden of the debt, but with consistent feedback that the car is his to sell should he want to get out from under the debt, he always reverts and talks about how much he loves his car. Thankfully, his cost of living with my sister is quite low so he’s able to focus on it. (He does pay her rent, etc.) And is covering all his own other expenses as well. I’m so proud of him.
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 3 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
