We had over $100,000 worth of debt when we realized how unnecessary carrying debt is. We want to be the owners of the belongings we use and care for, not some random bank.
We keep track of our debt-milestones in many medias; excel spreadsheets, bullet journals, banking apps, and in notebooks scribbled when we randomly have a thought that has to do with the budget (it’s addicting).
Recently we’ve come up with a current total and here it is:
Personal loan – $6,001.40
Revolving debt – $7,106.54
Vehicle loans – $21,923.56
Student loans – $15,515.83 Total current debt – $50,547.33
We are more than half way toward being debt free! Isn’t that amazing? We had well over 100k in debt and we’ll be below 50k by the end of August.
Such an amazing milestone! *applause*
The last time we were in only (hear my sarcasm) $50,000 of debt was before we were engaged and we each had about 25k of debt, and that was in 2013! How exciting is this?!
The snowball is picking up momentum. The personal loan should be paid off easily by the end of 2017!
Here is how things break down. Hopefully seeing these hard numbers will help people understand that normal families can accomplish financial freedom as well!
We make $4,584.00 base pay and $1272.00 for our housing allowance. We choose to live on base and our rent is $1,150 (includes utilities) therefore we receive $122 back each month making our take home pay roughly $4,032 (after taxes and such).
Our starting number is $4,032 for each month.
Expenses that are not debt are:
Cellphone 1 – $39.73
Cellphone 2 – $39.73
Internet – $44.99
Netflix – $15.37
Insurance – $149.82
Total expenses = 289.64
Personal loan – $449.56
Student loans – $202.36
Vehicle 1 – $350
Vehicle 2 – $350
Revolving debt – $125
Total debt = $1476.92
Phew. So much debt!
Those two categories added together means that $1766.56 automatically comes out of our account each month leaving $2265.44
This is an improvement from a few years ago if you can believe that; we’ve since paid off THREE debts and have received a few pay increases.
Currently we are snowballing at least $750 a month into our debt automatically, but will randomly throw chunks as the month goes on.
We’re hoping that this blog keeps us in check so we can throw at least $1,000 additional toward our debt each month.
Now let’s high five since we just showed y’all our skeletons, that’s the appropriate thing to do, correct?