Wednesday, June 1, 2011

Day 233 - June Update

June 1, 2011

Day 233 - June Update
The first and fifteenth of each month I will update you on the status towards our goal of paying off $60K in one year.

** Check out the Real Time Debt Tracker!!! Keep up to the minute tabs on our debt balance and whether we can pay it off in 365 days!

To date, we have paid off $47,808 of our debt in 233 days! That's about $205 bucks a day since we started.


Loan Balance Update 5/15/2011 6/1/2011
Student Loan #1  -    -  
Student Loan #2  -    -  
Student Loan #3  13,732  11,992
Sarah Mortgage  -    -  
 $13,732  $11,992
 


Progress: Four and a half months left to pay off $11,992. This equates to approximately $2,665 a month in debt payments. Since we typically pay a minimum of about $4,000 a month towards debt, we are still on track to meet AND EXCEED our $60K Project goal ahead of schedule.

Challenges: I'm going to be honest - we're losing our debt payoff motivation and I'm not really sure why. Our spending habits in May were atrocious - so much so that I just pulled out $500 from our savings account that we had stashed away for upcoming travel expenses. The $1,000 bachelorette party weekend didn't really help anything. Plus we just generally spent more on stuff we don't normally buy - eating out, massage, road trips.

I think seeing the light at the end of the tunnel is almost a double-edged sword for us. We can see that we have more than enough money to pay off our $60K of debt so we are being more lax about our budget meetings and spending habits. I think it may be time to re-evaluate our spending goals and begin to plan for what happens after the $60K is paid off. Without a purpose for every dollar and a long-term goal, we are not as careful with our money

Upcoming Expenses: Trips to San Francisco, Chapel Hill, New Jersey and Colorado. We have already paid for airfare for all of these trips so the remaining expense is hotel/car/food/entertainment.

Next Steps: Mike and I need to reinstate our bi-monthly budget meetings and assign an expense or debt payment to every dollar. We also need to talk about our goals beyond the $60K debt payoff.

Stay tuned,
Sarah

6 comments:

Anonymous said... Best Blogger Tips

You're doing so well. It's great that you have budget meetings and talking about your plans after your debt has gone should give you renewed motivation :)

Jeff @ Sustainable Life Blog said... Best Blogger Tips

I'd have to agree with you there - being close to the end is a double edged sword - since I first got rid of my credit cards and student loans, I've been very, very lax with my debt, so much so that It has been 7 months since I made a large payment - though I'm about to make one, it still doesnt seem all that great.

The $60K Project said... Best Blogger Tips

Jeff, if you hang in there then I will, too. Laura, thanks for the motivations!!

Jeff @ Sustainable Life Blog said... Best Blogger Tips

I'd have to agree with you there - being close to the end is a double edged sword - since I first got rid of my credit cards and student loans, I've been very, very lax with my debt, so much so that It has been 7 months since I made a large payment - though I'm about to make one, it still doesnt seem all that great.

Kellen said... Best Blogger Tips

Money Saving Mom described a similar issue. They scrimped and saved for years with the goal of buying a house with 100% cash. Then, once they had the cash and were house hunting, they totally went off track with their savings until they sat down and figured out what they needed to save up for post-house purchase.

60kproject said... Best Blogger Tips

I think it happens even to the best of us. It's tough to stay on track 100%. But in the wise words of Jay-Z, I just need to "brush my shoulders off" and keep charging ahead.

This Is A Do-Follow Blog

Related Posts Plugin for WordPress, Blogger...