I suppose if I am really going to call this a finance blog, I better tell you about my finances. I’m betting that I’m not alone out here with the following figures. I would also bet that there are plenty of you that have similar, or even worse, financial situations. Well, don’t worry. We can all be in this boat together. We can share our figures, share our plans, keep each other accountable, and become Financially Independent in no time!

So let’s get started.

I currently am making just about $2,500 a month after taxes and insurance (for the wife who is currently getting paid work). I currently have $290 dollars in my checking account, $1,000 in my savings account, and enough debt to merit a whole new paragraph.

I have a few credit cards. Ugh. These are absolutely the worst. I’m even considering using the rest of my savings account to pay these off as soon as possible. Luckily, I’ve been improving lately and two of my cards are completely empty. The last card now has $1,600 on it. Not too terrible. I WILL have this paid off with my second check from now, in March.

After the credit cards, I have a small car loan. This loan currently has $4,500. I have a 2013 Fiat 500. It is pretty fun. I didn’t even have to buy it either. It is basically on loan to me from my parents. I ended up taking a loan out on it to swap with my higher-interest-rate student loans. They were around 7%, and this car loan is about 2.5%. So I’m not completely disappointed with the car loan. BUT, I WILL have it paid off by August 2017. That is only 6 months away.

And, finally, after the credit cards and the car loan, I now have $20,000 in student loans for a Master’s Degree. Each of these debts will earn its own article post later on. They each deserve some focus and effort to pay off. These are by far, and obviously, the biggest weight on my shoulders right now.

With that $2,500/month that I get, I end up having just over $800 left over to pay off debts (and later invest) per month. I would have more, but we live in a pretty high rental market, and we love our apartment. I know I shouldn’t get my emotions involved in the saving process, especially if I’m striving to be frugal, but this apartment makes us really happy. I mean, it even has a washer and dryer! So, I’m going to keep paying the $1,020 a month for it. Ugh.

Anyway, I have $800 a month to *invest* in these debts. My car loan is set at $200 a month, so that leaves $600 a month for the credit cards. My current plan is to put all that $600 towards the credit cards this February, leaving them at $1,000. Then, in March, I’ll put another $600 towards them and probably take $400 from my Savings to cover the rest. That won’t leave me with a huge safety net, but I will have a $0 balance on the credit cards. That alone will be quite the motivator for future savings.

After those crappy cards, I’ll be able to put $800/month on the car. That will be awesome. After two more months (when I can pay the full $800 that is), the car will be at $4,100. Divide that number by $800, and you have just over 5 months. So I will have the car loan paid off in August!

So that is the plan. After August, I’ll start working towards those student loans. Next year, I’ll have some dramatically different funds each month, too. So, expect another post dedicated towards my goals for those student loans.

Read the next article, and we’ll talk about coaching and stipend classes (the absolute worst). Maybe I’ll even be able to beat that August pay-off date.

Thanks for reading.

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