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Looking Back

November 20th, 2012 at 06:27 pm

Over two years ago I posted in the debt forums (

Text is what 2 do w/the extra $100/mo in my pocket??? and Link is http://www.savingadvice.com/forums/debt/54923-what-2-do-w-extra-100-mo-my-pocket.html
what 2 do w/the extra $100/mo in my pocket???) about what I currently had in debt that I was paying on. Then, I had a about $18,000 dollars in debt. At that time, I had another $25,000 in student loans that were deferred which I wasn't counting because I was in school. And also I had an additional $13,000 in medical collections that I didn't know about at the time.

Looking back, I've realized that I've paid off both Mastercards, job loan, 401k loan, verizon, and the library. I've paid down the old apartment and the sallie mae loan.

If it wasn't for the medical collections I actually would have paid off everything by the end of my deployment except for the car loan that I started in May 2012 and the student loans, therefore being about $45,000 in debt. But that's how things are. At least I've gotten rid of about $5,000 from when I posted over two years ago and the $13,000 of medical collections debt that I had.

That means I've actually gotten rid of $18,000 of debt so far in about two years. Now I can't recollect all the debt that I have right now but I know that it equals at about $60,000 if not more (counting the school loans) (also I'm estimating on the high side on purpose). I'll have a clearer picture when I get home. I still have the old apartment complex to pay off as well as about $10,000 of the sallie mae loan and one credit card left.

Two years ago I only had $1000 in savings and living paycheck to paycheck and worried about losing my job if they decided to downsize because my company had just been bought by another one. And I was financially frustrated because I felt I couldn't do anything that I really wanted to moneywise. I would worry about gas money for going to work much less visiting my parents even if they were less than two hours away.

Right now, I have more than $5,000 in my accounts, and I'm more than able to afford my lifestyle. I don't need to worry about gas anymore or buying groceries. It's been a huge relief having money in the bank. I will still be frugal but this time it's because I WANT to be frugal, not because I HAVE to be. There is a HUGE difference in those two words.

My current plan, I believe that I'll be debt free in about seven to ten years. Depending on what I have left to pay off. My parents are doing an awesome job with my finances. I just need to keep up the momentum. Plus when I get back I'll then be paying rent, renter's insurance, cell phone, utilities, gas and food. That's just what I know from the least.

I'm hoping that I have about $3,000 more in my savings account (which I should depending on if I pay anything else off or not) when I get home. This is my emergency fund (EF). I'll start a separate savings account for my other savings for things to buy and another for saving for a home (although my plans will include having a VA loan).

My plan is to pay off everything but leaving the federal student loans last. At that point I should be contributing fully to my retirement fund, paying off the student loans, at the max for my EF, putting money in my house savings fund, and have my home improvement fund half-funded as well. (when I buy my home I want my home improvement fund to already be set up which I'm thinking is at LEAST $5,000 although I'm thinkin it will be more).

With YNAB (you need a budget) I hope that it'll take me less than 10 years. I stop paying alimony in 3.5 years so that will help a lot. I'm looking forward to that date.

As of right now, this month I have a credit card that is approximately $650 which I'm paying off THIS month because my paycheck got fixed. My parents will probably have my other card paid off if I didn't touch it other than making the minimums. But I want to feel as if I'm doing something as well. This was of my own making and I want to feel as though I'm doing something (other than making money) to get out of it myself.

I feel a lot better about myself. More self-confident. Happy. Not financially stressed.

Free.

I feel free.

It's such a simple word but I feel it. Even if I am in Afghanistan and I still have debt to pay off...

Financially... I'm free.

7 Responses to “Looking Back”

  1. NJDebbie Says:
    1353446720

    Firstable, thank you for your service! You are definitely on the right track and yes financial freedom feels really good!

  2. wowitsawonderfullife Says:
    1353464485

    Getting rid of $18K in debt in two years is outstanding. Congratulations!

  3. Sian Says:
    1353469761

    Thank you both!

    I didn't think it would happen. I thought it would take me 10 years to get rid of that debt. So I'm hoping it will take me seven years max to get rid of the debt I currently have. But I'm going to be realistic and say seven to ten years and if it happens to be soon that's good for me. =P

  4. Monkey Mama Says:
    1353513870

    Awesome!!

    I think often people look at frugality and careful money management as such a unhappy kind of chore. & when you are on the other side you think, "What the heck are you talking about?" I'd rather be free, any day!! Obviously you "get" that and will be a strong motivator to pay off all your debts and move forward. Sometimes you just have to experience it (e.g. not worrying about gas money) to understand that freedom.

  5. Sian Says:
    1353517364

    exactly!! i get it because mainly i come from a relationship in which we lived paycheck to paycheck so i won't let myself get there again! NO-SIREE-BOB!!! =P

  6. ava11 Says:
    1353564278

    Stop the worries, life is full of flavor. Just follow these simple tips and cut off any people hustling you. Focus and save money.

  7. Sian Says:
    1353568590

    thanks!! and i will!

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