Financial Goals Update

 I know I've blogged before about the awkwardness of sharing personal financial information on the Internet. It's an awakened thing to do face-to-face, so obviously it's awkward online. However, like so many other things, sharing about it seems to help make it real. It helps keep focus. It makes it feel BINDING.

In February, I shared our latest financial victory when I wrote about paying off our car. This month, we scored AGAIN.

To preface, I need to mention Husband's change in employment. (I can't believe this is the first time I'm writing about this. It will get its own post. It has changed our LIVES.) He got a new job and, while he's making about the same amount, the savings in gas and toll alone equal out to be about a 12% raise! Add in cheaper benefits and less wear and tear on the car, and this is a no-brainer. (As if the proximity and increased time at home weren't enough.)

We weren't really sure how everything was going to shake out as we sat down to go through numbers. We knew we were saving on gas and toll (to the tune of $300-400!). We knew we were saving on childcare since it's summertime (almost $900). We knew Husband's last check from his former employer included pay for unused sick days and some bonus money. We were not prepared, however, to be left with almost TRIPLE the amount of money we usually pay down on our debt at the end of each month. We checked and rechecked. Sure enough.

So, for the month of June, we were able to make our largest single-month contribution to debt since we started this journey.

It. Was. AMAZING!

We discussed long and short-term goals and basically came up with a five-year plan. For now, though, we are taking baby steps. We made a few decisions, like the fact that the big gaping hole in our bedroom, which will someday be a bathroom, will remain a big gaping hole for the foreseeable future. We receive five paychecks in the course of the month and we committed to putting the biggest one on debt each month, straight out of the gate. So, with some extra momentum under our belts, we have updated our goals:

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, 2014 by end of summer, 2014 by February 2015 CHECK!
5. Pay off renovation - GOAL: Paid off by end of summer, 2015
6. Pay off LAST LOAN - Undergrad. GOAL: Paid off by August 2016

Last year, we had car problems. And bats. Already this summer, Son has been in TWICE for medical procedures. And yesterday we got to drop another $300 on car repairs. We know from experience that things do not always go according to plan. Because of this, we have built in some cushion. If (when) something goes wrong, we will adjust. But we will do everything we can to keep on track. Because if we can stick with this, it means we will be debt-free in just over one year's time.

That BLOWS my mind. We took out our first loan for my car in 2007. We have carried debt around for eight years! What is it going to be like to be debt-FREE?