Monday, August 1, 2011

Day 291 - August 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 $56,152 of our debt in 291 days! That's about $193 bucks a day since we started. Note that the $56K number only includes principal paid. In order to pay off $56,000 in debt principal, we have paid $64,000 cash in total since October when you include interest. That is a lot of moolah!

Loan Balances
Student Loan #1
Student Loan #2
Student Loan #3
Sarah Mortgage

If we make our regularly scheduled debt payments, we should be making our last debt payment right around the first week of September - about 45 days ahead of our goal!

What's Next? Mike and I have been throwing ideas out for our next steps but not really discussing anything too seriously. I am considering continuing to pay off our debt by adding our last student loan of $50,000 to the Debt Tracker. Mike has proposed maxing out our retirement contributions. This should be a very interesting argument conversation!

Upcoming Challenges. The 2-for-1 deal: Mike and I both need surgery this year. I expect we will both be hitting our deductibles and maximum out-of-pocket expenses pretty quickly. It would be wise to save up for the portion we owe so trying to figure out how to best fit this into the financial equation.

Random Thoughts. I am currently reading Walden by Henry David Thoreau. I believe Thoreau is not much different than those of us trying to get our personal finances in order and realize the truly important aspects of life. Early on in the book, he discusses how aggravating it is that people throw away their money on renting nice places in town when you could build your own place for a small cost (circa 19th century, wish it was still like that!). He even includes a table with a breakdown of exactly how much he spent to build his cabin! Thoreau may be one of the first personal finance/lifestyle "bloggers" in America. I highly suggest reading Walden - not only because it is a classic but because I think you will get some satisfaction out of it.

"Our truest life is when we are in dreams awake."
Henry David Thoreau

 Stay tuned,


Ken @ Spruce Up Your Finances said... Best Blogger Tips

You're almost there! That's quite a journey and you only have $3,848 left

Kellen said... Best Blogger Tips

It's amazing. I started reading your blog posts from the beginning. I remember that you began with needing to pay $5,000/month to reach your goal, and not having enough extra cash to pay that much - now your total remaining is less than that, and with extra days to spare!

The debt vs. max out retirement is a tough argument. You've shown that taking a really aggressive approach with debt can make a huge dent in your total owed. However, you can never go back in time and maximize those retirement accounts later. I'd maybe take a look at some calculations for how much you'll have to sock away from retirement if you wait, and whether starting to max the account out a year or so from now, rather than starting to max it out this year, will really prevent you from having a comfortable retirement.

60kproject said... Best Blogger Tips

I am starting to taste victory - and it tastes like a filet mignon with garlic mashed potatoes and grilled aspargus!

60kproject said... Best Blogger Tips

Kellen, your comment inspired me to write my blog post about analyzing the retirement calculators. I'm working on figuring out how much to put away for retirement but it's proving to be more difficult than I expected. And thanks for being a long-time reader - you have made this process totally worth it!

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