Tag Archives: student loans

Debt Free by 30 Progress – May 2017

Here is our debt free by 30 progress for May 2017!

Some bloggers have income reports, I have my debt report ūüôā

Debt free by 30 progress – May 2017

debt free by 30 progress may 2017

As of May 1, 2017, we are $50,391.86 in debt – a $1,213.33 decrease from April 2017!

We’ve made a small dent in our debt free by 30 progress in this first month. It’s not exactly where we need to be, but it’s a great start I think.

Debt free by 30 progress – May 2017 breakdown

Here is our breakdown of our debt for May:

debt free by 30 progress may 2017

Per the chart above, our debt breakdown as of May 1, 2017 is as follows:

  • Car loan – $6,871.30 (down from $7,233.56 last month)
  • Credit cards – $20,390.82 (down from $21,055.37 last month)
  • Student loans – $23,129.74 (down from $23,316.26 last month)

 

Here’s a breakdown of our debts on an account level:

debt free by 30 progress may 2017

Debt free by 30 progress – May 2017 updates and notes

  • Juan received his yearly bonus last month, so we put that to good use (see next bullet point)!
  • We’ve completely eliminated Credit Card #1 last month! This is great because last month I predicted that we could only throw an extra $200 to our avalanche. Instead, we made it work and we’ve paid off the $500+ balance on CC#1! Woo hoo – bye Felicia 27.99%!
  • As far as side income goes, we haven’t really started quite yet. However, this month we are planning on selling a bunch of our clothes and other items around the house online. Probably on eBay, but if you’ve got a suggestion on where we could sell that you find is better than eBay ¬†– let me know in the comments!

All in all Рso far, so good. Paying off Credit Card #1 entirely was a great motivation boost! Also, I know exactly what we need to work on (cough SIDE INCOME cough).

Let’s do this!

AMDG,
Lisa

The state of our debt – April 2017

This post wasn’t easy to write.

In fact, I’ve been dreading it for months.

But in my recent declaration of becoming debt free by 30, I promised to document our journey to becoming debt free on this blog – including the ugly numbers.

So, here we go…

The state of our debt РApril 2017 Р$51,605.19

As of April 1, 2017, we are¬†$51,605.19 in debt.¬†And that ain’t no April Fools joke.

Alright, alright – let me have it! I can already hear the groans, the disappointment, the eye rolls all the way from here! I know, our debt is unbelievable to me, especially because I can read back to a previous post on this blog where I’m literally describing how¬†close I am to debt-freedom.¬†*sigh*

Life moves fast, y’all.

The state of our debt – April 2017 breakdown

Let’s get into what kind of debt we’re in. Here’s our breakdown:

State of our debt - April 2017

Per the chart above, our debt breakdown as of April 1, 2017 is as follows:

  • Credit cards – $21,055.37
  • Student loans – $23,316.26
  • Car loan – $7,233.56

The state of our debt – April 2017 updates and notes

  • Even though all of our non-mortgage debt fits into three categories, it is made up of fifteen different loans (see below).
  • We have decided to tackle our debt using the debt avalanche method. This means we’re paying the minimum payment on all of our debt and any overage is going to the debt with the highest interest rate. The order of the payoff of these 15 loans is as follows:¬†State of our debt April 2017
  • I mentioned in my first post of debt free by 30 that we can only afford the minimum payments on our debt. Well, this month, we’re vowing on throwing an extra $200 to Credit Card #1. It’s not as big of a dent as I’d like, but it’s a start. Hopefully next month we can pay off Credit Card #2 completely.

*Deep breath* Alright. There it is – all of our debt in its ugly, all-consuming entirety. The first step is acceptance and knowing your numbers. Well, $51,605.19 is our number.

We’ve got a lot of work to do.

AMDG,
Lisa

Debt free by 30 – our new goal

Today is my 28th birthday and today I’m calling it – I will be debt free by 30!

Debt free by 30 –¬†our new goal

I think Juan and I are finally ready to start fully¬†attacking our debt. Debt free by 30 is our mantra for the next 2 years and I’m committing to blogging all about it!

Debt free by 30 means getting rid of all of our non-mortgage debt by the time my 30th birthday rolls around. This also means staying out of debt once and for all!

I’ve been MIA on this blog mainly because we have been moving, travelling, and getting over sickness. But all throughout these past few months, Juan and I have been talking and talking about how we’re sick and tired of sending our hard-earned money to someone else. Well – now we’re sick and tired of talking about it! It’s time to finally do it!

Debt free by 30

Debt free by 30 – the why

Why is it so important for us to be debt free by 30? First of all, for me at least, our debt gives me anxiety. I worry about not being able to make the payments if one or both of us were to lose our jobs.

Secondly, there are so many things Juan and I would love to do (such as travel, invest more time in our hobbies, and saving more for our retirement), but instead of saving up for these things, we’re throwing money at our debt.

Overall, becoming debt free by 30 will allow us to say “yes” to more things we actually want to experience and “no” to things we are simply doing just to make our debt payments.

Debt free by 30 – the challenges

Debt free by 30 will be a huge challenge for us. First of all, we have a ton of debt! More on the actual numbers later. Secondly, we’ve got some other non-debt financial goals this year we want to crush.

Lastly, we only have enough room to pay the minimum on our non-mortgage debt. Paying the minimum on our debt will have us debt free in approximately 5 years – by then I’ll be 33 and although “debt free by 33” does roll off the tongue better, I still prefer to be debt free by 30. The sooner, the better!

Debt free by 30 – the how

Obviously, we won’t be debt free by 30 if we’re paying the minimum payments on our debt – that’s simply not going to cut it. So, first thing’s first – we’re going to commit to¬†pay more than the minimum each month.

The second thing we are committing to is increasing our income. We are both your average 9-5ers with decent income for our location, but we need more if we want to truly be debt free by 30. So we’re¬†going to commit to build a side hustle or two¬†with the goal of the extra money going immediately to our debt.

Debt free by 30 – accountability

At work, we have these things called “BHAGs” which stands for Big Hairy Audacious Goals. That’s what becoming debt free by 30 is for us – it’s big, it’s hairy, and it’s incredibly audacious.

The only way we can conquer this BHAG is to continually track our progress these next couple of years. That’s where this blog will come in. I hope to update the blog with our debt progress¬†monthly as well as any updates on our side income. I’m also hoping to post more vlog-style updates on the Lisa vs. the Loans¬†Youtube channel.

Debt free by 30 – who’s with us?

I know we’re not alone. If you haven’t turned 30 yet and are sick and tired of your debt, feel free to join us! I want to hear all about your goals¬†and would love it if we can all encourage each other in this effort.

Take the Debt Free by 30 pledge with me and don’t forget to follow me for updates on this BHAG of ours!

AMDG,
Lisa

Q1 2016 Net Worth Update

Disclaimer: this post may contain referral links.

Q1 2016 Net Worth Update

I was dreading this post.

The last time I updated my net worth was back in June 2015 and everything was all fine and dandy.

My net worth went up a good $30k, my credit card debt was almost gone, and my retirement savings, though struggling, was at a nice balance for someone my age.

And then life happened.

*Gulp* Well, let’s just get into it then – here’s my Q1 2016 Net Worth Update

Q1 2016 Net Worth Update

Overall, my net worth decreased by $883 this month.

Note –¬†just to clarify before we move on, this update is just looking at my own finances. My husband and I are slowly combining our finances, so¬†we should see our combined net worth in the next update.

Assets

Cash – $6,207 – up $3,026

Despite the mostly terrible net worth update, this category has a nice increase this time around. This is largely due to the wedding we just had. Wedding gift money, heyyyy!

Short-Term Savings –¬†$1,346 –¬†down $905

My savings accounts are all with Capital One. I love how easy it is to look at all my savings goals in one place. Here’s what my goals are right now:

Emergency: $1,003 – up $2 (hey interest!)
Personal Escrow: $322 – up $162
Wedding: $0 – down $1,083

Of course, the wedding fund was depleted once we, you know, had the wedding. It sucks to see savings go down like this, but that’s exactly why we save for things like this – so we can spend it eventually!

Retirement Savings –¬† $14,915 – down¬†$17,194

This consists of:

401k: $3,733 – down $22
Traditional IRA: $8,636 – down $445
Roth IRA:  $2,546 Рdown $16,727

*insert uncontrollable sobbing here*

You’re probably wondering¬†what happened?

Well, the short story is that we were getting closer and closer to the wedding date and realized that we were in¬†way over our heads in regards to payments. I mostly blame myself – I thought we were good financially until a few weeks before the wedding when we finally sat down and added everything up. My mom and my auntie had already helped us out, so we didn’t want to ask for any more money.

So, I double, triple, and quadruple checked that my Roth IRA contributions could be withdrawn without any tax penalty¬†and that’s exactly what I did.

I am not proud of this. But, I can obsess over how terrible this is (and believe me, I have), or I can own up to it, take the L, and move forward knowing better.

Estimated Car Value: $13,815 – down $1,550

I always get my car value from Kelly Blue Book. We all know how badly a car depreciates, especially one that’s bought brand new. So this isn’t news to me, just another unfortunate thing that happens each month that I’ve learned to just accept.

Estimated Home Value: $514,992 Рup $17,324

Right now, I use Zillow¬†to determine this value. Since I’m not planning on selling my house anytime soon, I really don’t take this increase to heart – even though it’s a great one! It just doesn’t mean too much at this moment, even though it almost masks my huge decrease in my retirement accounts this quarter¬†(almost).

Liabilities

Credit cards: $11,978 Рup $10,424

This consists of:

Discover @ 15.99%: $11,978 – up $11,958
Wells Fargo @ 22.15: $0 – down $1,534

Oh, hey credit card debt! There you are! Didn’t know you were sticking around this long…

Well, the good news is that I paid off my Wells Fargo credit card before the APR changed from 0.00% to 22.15%! The bad news… well, I think it’s a¬†little obvious.

Again, I’ve obsessed over this and the retirement savings. But when I say I’m starting over, I really mean it this time around. In the meantime, I may have to add another chapter to the Credit Card Debt Saga.

Student Loans: $13,359 Рdown $905

This consists of:

Direct Subsidized @ 6.55%: $2,672 –¬†down $158
Direct Subsidized @ 5.75%: $3,385 –¬†down $212
Direct Subsidized @ 5.35%: $4,109 – down $265
Direct Subsidized @ 4.25%: $2,013 – down $140
Direct Unsubsidized @ 6.55%: $1,180 – down $131

I can always count on my student loan progress to cheer me up! While so many others my age love to complain about these bad boys, I can’t help but be thankful for their consistency amidst the chaos of everything else in my finance world.

Car Loan: $11,439 Рdown $3,426

Usually, this category is pretty boring since I plan on paying the minimum on this loan for a long time. At least until my credit card debt and student loans are gone.

But something of interest just happened – I’m no longer upside-down on this loan! What that means is that the value of my car is now greater than what I owe on it!¬†Yay!

Mortgage: $265,558 Рdown $4,511

Slow and steady is my motto for my mortgage. I’ve got all these other loans to worry about, so I’ve decided that the mortgage is the last to go on the totem pole.¬†Nothing new here, folks.

So, there you have it. My cringe-worthy, disappointing net worth update. It would be easy for me to blame the wedding, but ultimately – I blame myself.

But, like I said, I’m starting over. So, I’m done obsessing over the slip-ups and I’m ready to move forward towards financial independence – one step at a time!

AMDG,
Lisa

June 2015 Net Worth Update

Disclaimer: this post may contain referral links.

June 2015 Net Worth Update

What! It’s July already?!?! Seriously, life is just moving too fast, y’all.

June 2015 Net Worth Update

Overall, my net worth increased by $31,567 this month!

What! That’s insane!

Mind you, most of it is due to my updated house value number. But I’ve also made some great progess on my credit card debt and all other debts, in general.

Assets

Cash: $3,181 – up $487

Someone pointed out that my cash balance is enough to pay off my credit card debt altogether. Which is true, but this money is reserved for house bills (mortgage, electricity, gas, water) and a lot of these bills are paid either every other month or one a quarter. As much as I’d love to just pay my debt off immediately, I keep it in my bank accounts for future bills.

Short Term Savings: $2,251 – up $1,099

My savings buckets are all with Capital One 360. They make it easy to see all your savings at once! Here’s what mine mostly consists of this month:

Emergency: $1,001 – no change
Personal Escrow: $160 – up $20
Wedding: $1,083 – up $1,080

Wait, didn’t I say I stopped saving for my wedding? The funds in there actually aren’t from me. My mom graciously offered to help pay for the wedding, so she’s sending me money once in a while for safe keeping. However, since I’ve got a goal to be credit card debt free before the wedding, I’m thinking¬†of¬†throwing that money at my remaining credit card debt.

Retirement Savings: $32,109 – down $758

This consists of:

401k: $3,755 – down $61
Traditional IRA: $9,081 – down $228
Roth IRA: $19,273.25 – down $469

Yuck. Of course the market takes a little dive the month I decide to stop saving for retirement. I’m pretty far from retirement, though, so I’m not going to worry too much about this. I know that in the long run the market will pick up, so I’m not going to stress over this.

Estimated Car Value: $15,365 – down $605

I look up the value of my car on Kelley Blue Book every quarter and update my net worth as necessary. The car¬†always goes down in value, without fail. That’s what you get for buying brand new.

Estimated Home Value – $497,668 – up $27,832

Aw baby!¬†I check Zillow when I want to see the value of my home. As awesome as this looks, I’m not planning on selling soon, so this value doesn’t necessarily mean anything to me right now.¬†But those gains look damn good!

Liabilities

Credit Cards: $1,554 – down $2,552

This consists of:

Discover @ 15.99%: $20 – down $1,323
Wells Fargo @ 0.00%: $1,534 – down $1,228

Despite the huge $31k jump in net worth, I am most excited about this one! I am so close to being credit card debt free, I can taste it! I really buckled down last month and threw whatever I could at this debt and it shows! Hopefully by next month, this will be a nice fat $0!

Student Loans: $14,264 – down $131

This consists of:

Direct Subsidized @ 6.8%: $2,830 – down $15
Direct Subsidized @ 6.0%: $3,597 – down $20
Direct Subsidized @ 5.6%: $4,374 – down $25
Direct Subsidized @ 4.5%: $2,153 – down $14
Direct Unsubsidized @ 6.8%: $1,311 – down $5

Another solid month for the student loans. Can’t complain!

Car Loan: $14,865 – down $336

The minimum is all I’m throwing at this loan right now. Slow and steady is the motto.

Mortgage: $270,069 – down $493

Same with the car loan – slow and steady with this one.

Overall, my June 2015 net worth update had it’s ups and downs. Mostly ups! Can’t wait to tackle some more debt this month.

How was your June financials? Did you stay on track with your goals?

AMDG,
Lisa
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