I was in a big committee meeting at work recently and I got bored (shh, don’t tell my boss). It’s not like I’m not an integral part of the committee, so I started doodling. Since all of us here are PF geeks, you know I didn’t spend my time drawing stick figures and flowers – instead, I figured how much we’d have to send to our student loans each month to significantly shorten the time we are beholden to Navient.
Yes, I already have our Mintly Goals, but I’ve realized that I often tend to set the bar lower than maybe I should. For instance, my original goal was to snowflake $50 a month to our student loan debt. Well, we’re obviously killing that – just in the first quarter of the year, we’ve snowflaked $1689!
I started by looking at the amount of money we’ve already sent to our loans:
- $506 minimum payments (H’s and mine)
- $756 extra payment (to H’s only)
- $450 Citibank payment (currently going to Citibank until June, then we’ll just add it to the $756)
I doodled for a while and did some calculations, and figured that if we wanted to really make a significant change this year, we’d have to snowflake a pretty significant amount of money each month from now until the end of the year. The magic number?
$405 a month – and that has to begin this month (April). That will be an extra $3645 by the end of 2015. Honestly, that still seems lower than I’d like, but I try to keep the bigger picture in mind.
Fortunately, $405 is doable for this month: we’re already at $458, thanks to the money over $5000 that we got in our paychecks for March, as well as some money we got for consigning.
However, as I’ve already alluded to recently, we won’t be getting as much extra cash in our paychecks from now on (that was the last payment for a side hustle that ended in March). That means that I’ve gotta start hustling to make some more money.
Why do I care so much putting even more than $1700 each month to debt eradication this year?
If we can accomplish this, according to my spreadsheet, we can get H’s loans paid off as soon as February 2017, with a debt-free date of July 2017 if we then turn our attention to my loans (which have a much lower interest rate). That’s 7 months earlier! (No, I didn’t calculate the amount of interest saved, but I may do that next month to keep from feeling discouraged.)
I want this student loan debt GONE, and I want to feel like I’m making a difference!
I want to start maxing out my Roth IRA before I’m 40! I want to be able to save money for a downpayment! I want to feel confident that we are putting enough away for retirement! I want to save money for L’s college! I want to get out from under this cloud of debt!
So…. I need to hustle! My goal is to make $400 a month extra (keeping in mind that I’ll need to save 1/3 of my side income for taxes).
Wish me luck. 🙂