Get Financially Fit: 2014 Goals

Okay - I have (albeit inadvertently) put off writing my financial goals for 2014.  I was reminded of this yesterday when I was asked what I would do with an extra $1000 per month.  I didn't have to think twice - get out of debt faster.

Here were our financial goals starting in September of 2013:

1. Establish an emergency fund of $1000 CHECK
2. Pay off Loan #1 - car.GOAL: Paid off by September 2013. CHECK
3. Pay off Loan #2 - credit card. GOAL: Paid off by Christmas 2013 CHECK
4. Pay off Loan #3 - other car. GOAL: Paid off by end of school year
5. Pay off Loan #4 - student loan.

Dave says that all non-mortgage debt should be payable in two years or less, so by September of 2015, all of this should go bye-bye.  Obviously, the highlighted one is where we are.  Right now, using the debt snowball method, we are able to throw all of what we were paying on my car and the credit card at this debt every month, in addition to our regular car payment.  We also put whatever extra we have at the end of the month 100% toward this debt.  When it all totals out, it's a good chunk of change each month.  We were on track to get it paid off by May...and then, due to some unforeseen expenses and poor planning in December, we weren't able to put the sort of dent into the debt that our budget was supposed to have allowed.  And then in January, both our cars required repairs that totaled $2000. (OHMYGOODNESS I about died.)  We were unable to make our above and beyond debt payment because of this, and as a result, I'm afraid to say it is now highly unlikely we will have Loan #3 paid off by the end of the school year.

I am devastated.  This will be our first big set back since committing to become debt free as soon as possible.  My husband, always the optimist, pointed out that, had this sort of thing happened to our car a year ago, or even six months ago, we would have been crushed.  There would have been no way to squeeze $2000 extra dollars out of our budget to pay for car repairs.  Now, it's not a matter of not having money, just not being able to spend it where we would have liked, and that is a much better problem to have.  Very, very true.

So, the new plan:

1. Establish an emergency fund of $1000 CHECK
2. Pay off Loan #1 - car.GOAL: Paid off by September 2013. CHECK
3. Pay off Loan #2 - credit card. GOAL: Paid off by Christmas 2013 CHECK
4. Pay off Loan #3 - other car. GOAL: Paid off by end of June
5. Pay off Loan #4 - student loan

 For 2014, we want to pay off Rick's car and start paying off those student loans.  We can do it :)