Tags

, , , , , , , , , , , ,


Screen Shot 2018-03-12 at 9.18.22 AM

The most amazing screen to see.

 

It happened this year. I finally payed off my private student loan. I still have a government loan with a $20,000 balance looming over my head, but after 5 years of teaching done (currently in year 2/5), it will be forgiven, God willing.

This Discover loan loomed over my head for far too long. Back on February 8, 2017, I wrote to my accountability partner for my Financial Peace University course about how long I thought it would take to pay off my loan. I couldn’t imagine paying it off in a year. I owed $10,001.65 at the time and wrote to my friend that in 2.5 years I could pay back to $10,000 dollars. I was paying $400 a month at time. Somehow I managed to pay back my loan at a rate of almost $1000 a month, a substantial part of my income, especially considering my expenses (rent, groceries, government loan payments, tithe).

Here’s how I did it:

Lots and lots of extra work 

I didn’t intentionally work extra, but I ended up doing a lot more hourly work this past year. I have a per session rate of almost $40 an hour as a teacher. Almost every time I got an extra check from doing this work, it went to my loan. I said yes to a lot of extra work that I normally would never agree to. I went on extra trainings and took opportunities because I knew that the extra money would inch me closer to my goal.

Just put a little extra 

Every time I would make a monthly loan payment, my mom challenged me to put a little extra. For example, if I was paying $400 for the month and the loan balance was $5,500, my mom would tell me to pay $501 to see the balance drop a little bit more into the $4,000 range. It became so much fun to push myself a little more each month and to pay off more and more.

Budget! 

I never budgeted effectively before last year. I have my own weird system that works for me. I use Everydollar.com but at the beginning of the month I only vaguely put my money into categories. As I spend money, I keep receipts and adjust my budget to my actual spending. If I buy something and don’t get a receipt, I log it right away on my Everydollar app. I challenge myself to “feel” every purchase. I want to get better with this because often my money goes to things that aren’t important to me and I want to tell my money where to go.

Closing Thoughts

The truth is that I’m still learning how to manage money. Now I’m working on my rainy day fund. My goal is $6000. I’m following Dave Ramsey’s steps by avoiding debt and spending somewhat wisely. I still buy things I don’t need and make mistakes but I am so proud to now be one step closer to financial freedom.

Advertisements