A Story About Paying Off Debt and the Obstacles Along the Way

, , , , , , ,

Winning, November 2017 Edition

I almost - but not quite! - slacked off on posting the November edition of WINNING, a series in which I identify our accomplishments in an effort to stay positive and motivated throughout our debt repayment journey


via GIPHY

As hard as this season has been with respect to my job and the never-ending slog of digging out of our financial hole, we've had several financial and personal wins lately:

(1) Per our new and improved repayment plan (I've dubbed it The Monster Repayment PlanTM), we dedicated $2200 to debt repayment this month!:
  • $1330 to Credit Card #2
  • $275 to Credit Card #3
  • $201 to Student Loan #1
  • $393 to Student Loan #2
If this plan is sustainable (and I think it is), we'll pay off both credit cards by the end of next August - possibly earlier, if we get a tax refund and work bonuses.


via GIPHY

(2) Thanks to Win #1, we now have a total debt load of less than $70K (to be precise, it stands at $69,771). That's still a lot of debt, but considering that we started off at close to $78K last April, we've made some major progress. It feels amazing to hit this benchmark.


via GIPHY

(3) Despite the hefty repayment sums dictated by The Monster Repayment PlanTM, we'll still be able to put $600 into savings this month. That brings our total emergency/sinking fund to almost $3000.


via GIPHY

(4) I finally made a decision about our 2018 health insurance. The choice was between my current traditional PPO plan and a lower-premium high deductible health plan plus health savings account. After asking for tons of advice (thanks, blogosphere!) and crunching the numbers, I settled on the latter. We'll spend $100 less per month on premiums, while my employer will funnel an additional $110 per month into the HSA. Honestly, I couldn't pass up the free money. Plus, the maximum out-of-pocket is $4000; while that's no small sum, we feel it's something we can cover if we need to.


via GIPHY

(5) Fortysomething received two major accolades at work: He won a teaching grant for his classroom, and he earned a teaching award from the students and administration. Although he's been in his current position for only four months, it's clear he's absolutely thriving and sees this gig as a long-term commitment (which promotes long-term job stability, which in turn promotes longer-term financial stability).


via GIPHY

Progress! It's happening! It's really happening!

What about you? What are some of your recent financial accomplishments? (I want to know!)

Share:

6 comments:

  1. I think you'll find that since you will be doing $2,200 a month that things will pick up. Especially this time of year with bonuses and tax refund you will make a lot of progress these next few months. Depending on when you do your taxes I wouldn't be surprised if you are under !60K around March. Great job! So fun to get past that $70K threshold!

    ReplyDelete
    Replies
    1. Thanks, Kevin! It's been fantastic to see the pace of our repayment pick up. We probably won't see any bonuses until early summer, but we *may* get a tax refund (with our side hustles, it's a bit hard to predict that). I've also picked up yet another side hustle in January (which... I may regret).

      Delete
  2. That is a whole lot of winning! Go, you! You have already shaved off more than 10% of your debt, in just a few months.

    As of today, we have hit the 50% mark. We started with $16, 724 in credit card debt, and I just made a payment today that puts us at $8362. On the one hand, it has felt like a long, tedious slog to get here. On the other hand, 19 months has passed by pretty quickly.

    Here's to winning! Happy Thanksgiving. So glad I found your blog. :)

    ReplyDelete
    Replies
    1. Thank you, DeeCee, and Happy Thanksgiving to you as well! Congratulations on getting to the halfway mark - that's a huge deal!

      Delete
  3. Congrats! $2200 a month is awesome.

    My big accomplishment lately has been reducing the frequency with which I check my net worth. I'm a little obsessive, and as a result my mood is too closely tied to the number. I'm working on trusting that I am making good spending and saving decisions and checking the net worth infrequently.

    ReplyDelete
    Replies
    1. Thank you for your comment! That is a great goal! I totally relate... I tend to get obsessive, too. I recently created a Personal Capital account. Given my Type A tendencies, I'm not sure that was such a good idea!

      Delete