I’ve been talking about our budget a lot lately. We have many options as to how to pay of each of our loans, but the best option we came to was to over pay on one specific loan, which has a handful of years left on it, which will allow it to be paid off in 12 months. This particular loan is the most expensive each month, and if we overpay it the way we plan, we will be double paying on it. This loan doesn’t have the highest interest rate (in fact it’s only 2.5% interest) but because it is so expensive each month, and a short duration payoff, we will be able reach our goal of becoming debt free much sooner if we pay this one off first.
We plan to snowball our loan payments once the first is paid off, and since this loan is the most expensive each month, and we will be double paying, once we pay this loan off we will actually be paying 6x the minimum payment on the next loan in line to be paid off. You read that correctly. We will be paying six times over the minimum payment of loan #2.
This whole debt free journey is such a tease because I’m not seeing immediate results, so I do our monthly budget, and every month I wait until the next month when I can do the budget again. Please tell me I’m not alone? lol!
Please, if you have any tips and tricks about reaching this financial goal share them with me! As for me, I’m hoping that in a couple years I can share our financial plan with you and a big long soppy success story. Despite sharing with all of you, nobody in our personal lives actually know of our big journey or how devoted we are, but they are aware of how stingy we are toward ourselves concerning luxuries. *Fist emoji*
Set some goals. Stay quiet about them. Smash the shit out of them. Clap for your damn self.