Tuesday, December 17, 2013

Change of Focus

After talking with my Dad he convinced me to save up a larger Emergency Fund before I pay off my Personal Loan.

In November I made a good start on paying off the Loan with a little over $1000.

I will just pay the minimum payment, which hurts a bit since I want to pay the loan off.

So, I have decided to make my EF equal to two pay checks take home portion.

I have socked away a grand total of 5% towards that amount, yeay.


Friday, November 15, 2013

Mid-November Report

Haven't made any extra additional Deposits yet.
Yesterday was Pay Day so $150 was paid on the loan.

The Loan's current balance is: $6,380.72

Today my Roommates Rent is due for the second half of November, so an additional $265 will be put towards the loan.

Think I will round it up to 280.72 +interest, this way I can have a nice round number.

Monday, November 4, 2013

November is off to a good start.


I Ended October with $7000.00 owed on my Personal Loan before a there was a $150 automatic transfer payment on my loan which happens every pay day. After interest was paid and loan insurance add on I was left with $6,860.69 left on my loan. but for Math purposes I am going with the $7000 total.

I am renting out a room in my house to help pay off the loan faster and to cover regular home maintenance costs. My renter pays rent of $275 twice a month on the 1st and 15th when she gets paid.  I let her carry over a partial rent payment last month so I paid $400 on 1 Nov.

I used $350 towards my Loan and kept $50 for housing costs. After paying $1.50 in interest I now owe $6,512.19 on the loan.

So I have paid off  almost 7% of my loan this month.


Since I got the loan I have paid off 34.87%


Here is what else I expect to pay towards the loan in November.
$85 from the extra money on my Mortgage
$300 from the 2 payday automatic transfers
$200-$275 from my Rent payment, for now I will plan on using $215.

so that is an additional $600 towards the loan this month. Now to see what else I can sell or save to help pay off the debt.

Thursday, October 31, 2013

$362.07

$362.07 is how much extra money a month I need to come up with to pay off my Personal Loan by the end of September.

At the start of October I owed about $7,200 I took an additional $2,000 out of the loan to cover expenses until I got my retroactive pay from being furloughed. Today I got that pay and used the bulk of that money to pay back the loan, if I also include the money from selling things that I already paid towards the loan I now owe $7,000 on the loan which feels a lot more manageable than $9,200.

This morning I pulled up a loan calculator to figure out how much I needed to pay each month to pay the loan off by September. That amount is 662.07. I currently have $150 taken out every pay day to make a payment on the loan, so that is $300 a month plus 2 extra payments since I get paid 26 times a year (it will be May and October in 2014).

My goal is to pay it off by September 2014 which is the end of the Financial Year at work, so it was an easy date to work with.

I am also planning on paying an extra $500 a month if I can, which will have me pay off the loan by August, or July if I add an extra $36 to the last payment.

Here is the website I used to figure out my payments:

http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

The calculator has places to add extra payments either, Monthly, Once a year, or as a One Time payment.

What I found kind of exciting was seeing how fast I could pay off my student loans if I snowballed everything into my student loans which is my next lowest debt.

Tuesday, October 29, 2013

How I am finding the extra money to pay off the Personal Loan.

I am looking at 5 ways to find extra income to help pay off my loan.

1. Sell unused items on Craigslist. I have decided if something is sitting around my house and I haven't used it in a year or don't plan on using it soon I will sell it unless I know I will use it sometime or it has sentimental value. If it does have sentimental value I will just price it higher and maybe sell it anyway.

2. Rent a room out in my house, I have done this in the past before I got a job promotion. I used to rent the room out when I needed to cover an expense in my house, like when I repainted the outside walls. The room's rent will cover the extra $500 a month. I used to rent 2 rooms out in my house, and might do that again, or if I sell enough items I turn it into a 2 room suite and ask for more money.

I have sold most of my big ticket items in my house that I want to sell. The only exception would be my camera. If just use my cell phone I could get rid of the camera and probably not miss it much. Guess I could sell the camera, use some of the money to find a way to attach the phone to a tripod and put the rest toward my debt.

3. Look for a 2nd job or a hobby that could make some money. I am bit lazy by nature and really like my free time, so it would be hard for me to take a 2nd job, and I don't know what hobby I have that could make money or how I would go about it.

The 4th way of getting extra income is with my current job. I know when I will be getting a raise and I can put that towards my loan. As a Government Employee I know when I will be getting a step increase, my next one is in April. There is also a chance for Congress and the President to increase our pay to cover inflation. In January we will be getting a 1% increase, so I can also put that extra $10-$20 a pay check toward my debt.

The last way I plan on finding extra money is by reducing my spending. To start I will need to find out how much I spend a month, so I guess it is time to make a budget or just track my spending. I also plan on reducing my entertainment and eating out expenses. Wish me luck on this one, it will be the hardest one for me to follow through on.

Made a small money decision today.

I have a Personal Loan with my Credit Union that I plan on paying off first, I will then decide if I will attack my Student Loans, Credit Card, or Car Loan next. I am debating between Credit Card or Student Loan.

This morning as I was about to make my Mortgage payment I decided to change how much I would pay each month. In August I refinanced my Mortgage and my payment dropped from $975 a month to $915. I was paying $1,000 on my Mortgage under the old loan and planned on paying that much on the new loan to pay it off in the same time period.

It was a good idea at the time, but now with my new priority of paying off the Personal Loan, I currently owe about $8,400, I will now put that extra money towards the Personal Loan instead of the Mortgage. To Pay of the loan by September I need to come up with an extra $500 a month, that $85 will be an easy contributor to that amount.

So far this month I have paid an extra $565 and have another $50 to deposit today and since this is a 3 pay period month there will be an extra payment made on the loan too. So I am off to a good start.

Monday, October 28, 2013

Welcome to Stupid With Money

Call me Stupid, because that is what I am when it comes to money. Money never really meant much to me it was always available so I never kept a budget just spent it as I needed or wanted something.

I work for the US Government as a Department of the Army Civilian (DAC) and was effected by the Sequestration Furloughs (SF) and the Government Shutdown Furloughs (GSF). The SF was a 20% paycut for a 6 week time period that wiped out most of my savings since I didn't modify my lifestyle during that period. The GSF lasted 4 days for me which I consider a blessing since I didn't have much money left in my bank account and didn't know how I was going to pay all my bills let alone food if it lasted much longer.

The other difference between the two Furloughs is I will be getting retroactively paid for the GSF but not for the SF. So I will be able to pay back the loan I took out during the GSF to help make ends meet.

During the GSF I had lots of time to think since I wasn't working and wasn't going anywhere so I didn't have to spend money. I used that time to finally figure out all of my debt and contact lenders to see if I could reduce my interest rates (It was a success, I was able reduce one loan by 0.25%).

During that time I made a goal of paying off one of my 4 loans (not counting Mortgage) by the end of FY14 (end of September 2014).

To achieve this goal I am going to have to come up with an extra $500 a month. I will make a big dent in the loan this week when I get my GSF retroactive pay in my paycheck this week. I will be able to put all the retro pay back into the loan.

To also help come up with the extra $500 I have started selling items in my house that haven't been used in over a year. Unless it has a lot of sentimental value I figure it won't be missed, and if it does have a lot of sentimental value I can always take a picture of it and ask a higher asking price. Guess as Mr. Money Mustache says, I need to think of my debt as an emergency and get rid of it. So far I have sold enough items to come up with $490 of the extra $500.

Future posts will provide a look at my debt and how I am doing paying it off. If this is like any of my other blogs it will die a slow death after a few posts. I really got the domain as way for me to have a place to keep track of how I am doing. But for now, thanks for reading.