My apologies for being MIA for the past week or so, but I was presenting some research in the United Kingdom and just didn’t have time to post. However, my summer can start to get back to normal sort of. I have a lot of updates that I need to do on a variety of subjects, which I hope to do in the next couple of weeks, but one of those updates is how my debt payoffs are going.
For the past two years, I have tried to track my progress of paying off debt in quarterly updates. At the beginning of 2015 I had a total of $264000 in debt which included three primary debts: our mortgage, a personal loan, and my student loan. My goal for 2015 was to pay off 10% of my debt, which I was able to accomplish. I was also able to pay off a huge tax bill and our HEAT loan for 2015. For 2016 I have several financial goals, but one of them is to continue with the 10% pay off goal, which would mean I need to pay off about $26,400 for the year.
Here are my current totals at the end of the 2nd Quarter of 2017:
$171,025 168,780.16 166,320.16 162,762.77 161,020 $ 157,210 $ 155,120 $152,750 $149,489 146,580 143,027
2) Student Loan:
$65,959.39 $65,188.58 64,427.07 63,657.24 63,392 62,903 $62,426 $61,910 $61, 371 $60,800 $60,221
3) Personal Loan:
$27931.41 $25,401.80 $17,484.39 14,169.27 10,994 7,186 $0
4) Car Loan:
$21,655 19,919 18,151
5) Credit Card 1:
$264,915.80 $ 259,113.61 $248,231.62 $240,589.28 $235,406 $ 227, 229 $217,546$210,860 $203,248 ($222,403)
This quarter I have paid off $7612. However, I still also have a CC bill of $1000. That bill is for an unforeseen expense over the past 3 months and I am actually keeping it on my card until I get reimbursed. My goal for the next quarter is to have the CC totally paid off and I am still behind on my debt repayment goal. My goal is to pay down 10% of my debt every year until it is gone. Well that would be about $29k per year. In order to get back on track I need to pay down about another $9000. That might be a tall quarter. I am not sure I will meet my goal by the end of the year, but I hope too.
My financial goals for 2017 are:
- Continue with the 10% goal of paying off debt. I think this is important to hit every year. It means we need to pay off about $29k this year and in the coming years. Update: So far, I am not meeting this goal, but I do hope that I can make up for this along the way. Although I am not as distraught about this as before because I realize that investing is actually more important for me.
- Save at least 25% of our income. This is something I want to really try to hit. Part of the reason we don’t is because we are paying off student loan, car, and mortgage debt. Those debts account for 60% of our budget. If we could eliminate 1 or 2 or two of those items we would have much more breathing room. Update: If we were to include debt payment as part of our savings rate then I will meet this easily. If not, it is going to be close. I guess it depends on how you calculate things. If you do just gross income it will be close, if you do ADJUSTED gross income then I will hit it.
- Pay for all medical expenses without using credit cards. I currently have some money set aside for upcoming medical expenses. However, I want to beef that up even more and not have to put it on our credit cards. I know eventually we will pay them off, but I want to avoid CC debt as much as possible. Update: So far so good.
- Get Mrs. ROB started on more retirement savings. Because of Mrs. ROB’s employment situation she doesn’t have access to a traditional retirement plan. 99% of our retirement savings are MY savings. That isn’t right. I would like to start Mrs. ROB on her own Roth or regular IRA. Update: I have not done this yet and I need to get on it.
- Cutting our budget by about 5%. I know that doesn’t sound like a lot, but we have to start somewhere. Our spending in one month is above where I want to be. I want us to start saving more money. Cutting down on certain expenses like eating out or reducing a debt payment or something would be advantageous. Update: This has not necessarily been accomplished. I will know more at the end of the year.
The other big goal is our goal to start a family. That is not really a financial goal and I can’t really comment about it until we hear some news. Hopefully by the middle of 2017 I will have more information for all of you. Update: I will have more information on this soon.