As I was thinking about writing this post I realized that I don't even know who (if anyone!)
actually reads this blog. I have these wild dreams of having a thousand plus followers but realistically if my mom used a computer she might actually be the only one keeping up with me. It's been a crazy mix of personal stories, design projects, party planning, & everything in between! So for today's post if you are here for the design projects & fun stuff hold tight with me while I share some personal exciting news! Since I'm not married, pregnant, buying a house, or have any other huge life changing event happening ... I have to be excited about other things. Sooo ...
TODAY, I PAID OFF ONE OF MY STUDENT LOANS!
wahoo!!!
You might remember when I started reading Dave Ramsey's "Total Money Makeover" book a little over two years back (& wrote this post:
Total Money Makeover). Throughout the last couple of years I'll admit that I haven't been the most diligent in sticking to a budget & when I went back to school for my second degree my loans were in deferment (aka I didn't have to pay them). Looking back I wish I would have made more payments during that time because the amount would have gone directly towards lowering the principal and wouldn't have collected any interest. However when the time did come that I graduated (again) & was required to start my loan repayment (again) I always paid 3-4x the amount due on this particular loan.
How did I do it? I increased my income. I started by asking for a raise at my current job. Then, I started working a second job. I pretended as though I wasn't making any more money & instead put it all directly towards the loan. While the second job is only temporary, it gave me more momentum & I was able to make a bigger dent than before.
Whenever I read articles on "how to save money" I usually get bored because they are things I already do - no cable, avoid late fees, eat at home, bla bla. I stopped getting my nails done, going tanning, & cancelled my gym membership. Instead of never going out I pick places to go based on my favorite time - happy hour! I can never say no to spending time with friends so I often suggest to go on a walk instead or invite them over for a bottle of Two Buck Chuck. I patch my old jeans instead of buying new ones. I make sure I only make one trip into town for work & coordinate all my errands to get them done before or after. I stopped buying fancy coffee (everyday) & make it at home instead. I didn't renew my season football tickets (SO SAD about that one) because now living three hours away makes each game that much more expensive to go to! Every little thing adds up.
It would seem that one less monthly payment would mean more money in the bank! BUT, I'm going to follow Ramsey's "snowball" principle of now putting all the money I put towards this loan towards the next one! I didn't really understand the concept of paying off your smallest debt first, but it
really does encourage you to keep at it when you reach your goals. It also allows you to pay off the larger debt in less time in the end.
My goal was to have it paid off by December ... and I'm three months early! So this "back-to-school" season, I'm celebrating NOT going back to school & NOT having to pay towards that student loan ever again.& damn! it feels good.
One down, one to go! Time to crunch some numbers & set my next goal.
