Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Sunday, November 15, 2009
Celebrating Paying off Debt
I can't believe how different it feels now that my student loan is paid off. I didn't realize it, but for the last year I've really been very aggressive about not spending $ so I could pay it off. This weekend I finally felt like I could let myself spend some $ on things I need. I have wanted a fire-proof file box (I'm such a geek) for about a year. So I ordered that online. Mostly though I bought clothes on a shopping trip (spree) with my friend. I realized the last time I really bought clothes, except for the bathing suit this summer, was last January, also with her, when I bought a new suit for work. Most women that I know would not have survived, haha. Anyway, it felt really great to buy some new clothes because I really need them. A lot of my clothes are 10 years old and some are starting not to fit anymore. I've been purging my closet as I switch to winter. That also feels good. To know I've used something for so long, I definitely get my money's worth out of my stuff.
Saturday, October 17, 2009
School's Out!
I'm so psyched. This month I paid off my last student debt. This was a credit card debt of about $11,000 that my mom had been carrying for me interest free for I can't even remember how long -- probably 2 years.
So, this year I've paid off about $31,000 in student debt. That's great, especially since I paid very little interest on those loans (the one actual loan was $20K at 6.8% but I only accrued interest on it for about 8 months). What is depressing is realizing that my entire last year's bonus, plus a good chunk of my monthly savings this year went to pay off that debt.
Needless to say, I'm looking forward to starting next year being able to keep every penny that I save! If I don't end up purchasing a house, I'd like to save $2,000 a month post-tax, in addition to maxing out my 401K with pre-tax contributions. That puts me at a savings rate of about 30%. Woo-hoo!
I've got a pyramid going with 1/3 spent post-tax, 1/3 spent on taxes and 1/3 saved. Of course I'm always looking for ways to lower the 2/3 that I don't get to keep and increase the 1/3.
So, this year I've paid off about $31,000 in student debt. That's great, especially since I paid very little interest on those loans (the one actual loan was $20K at 6.8% but I only accrued interest on it for about 8 months). What is depressing is realizing that my entire last year's bonus, plus a good chunk of my monthly savings this year went to pay off that debt.
Needless to say, I'm looking forward to starting next year being able to keep every penny that I save! If I don't end up purchasing a house, I'd like to save $2,000 a month post-tax, in addition to maxing out my 401K with pre-tax contributions. That puts me at a savings rate of about 30%. Woo-hoo!
I've got a pyramid going with 1/3 spent post-tax, 1/3 spent on taxes and 1/3 saved. Of course I'm always looking for ways to lower the 2/3 that I don't get to keep and increase the 1/3.
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