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I want to give a quick debt update since a lot of things have changed in the last few months. I am incredibly proud to see my total consumer/student loan debt number at $33,482.
If you remember, three years ago I was separating from my ex and my debt total was around $65,000. I had a roommate, sold my nice SUV, and prioritized crawling out from that place. When I PCS’d to Florida for nursing school, I downgraded my apartment and overall lifestyle to make bigger debt payments.
For the last year, I’ve calmed down on my debt pay-off journey to prioritize some needs and wants, and I don’t regret that decision one bit.
In March, I received a big pay raise of about $12,000/year. Unfortunately, my pay and entitlements were messed up until July, so I stopped paying extra on my debt during that time in an effort to save for future expenses until it was fixed.. Thankfully, that’s all sorted now and I received a big back pay check, as well as money to assist with my PCS to Missisippi.
Big Wins this Summer
So let’s talk about where I am now. Below, you will find the full breakdown of my current debt – including my newest addition – the home mortgage!
I bought a house!
Some people wouldn’t define it as a win, but you should read the full story before you cast judgment. My payment with everything included is $966/month. That is less than every apartment/house I looked at renting. It’s actually about $300-400 less each month. So far, maintenance costs – including termite/pest control, security, and lawn care – haven’t reached the monthly cost of what it would have been to rent either – so yes – it’s a win for me.
I absolutely love my home and have zero regrets. I’ve set my payment on auto-pay at $1000/month, so I’m even paying a little extra on the principal each month.
I reached a new savings milestone!
For years, I’ve tried to build up an emergency fund that made me feel semi-secure. I finally reached it! I’ve decided to stop giving specific numbers on what I have in liquid savings, but I can tell you it’s more than I’ve ever had before. It will easily cover any major home or car repair, and it’s at a point where I can put a small down payment on a new car when the time comes.
I will continue to build it up while paying down debt, but now that it’s in a good place, I can push a little more money to my debt again.
If you don’t count my home loan, I finally reached zero day with my net worth!
First, “zero” day is defined as when you finally reach a point where you have more positive assets than negative. Some people include their home, cars, etc. I only include liquid savings and what’s in my retirement account.
I don’t count the home loan as a positive or negative asset because it’s basically just a payment at this point. If I wasn’t paying a mortgage, I would be paying rent. However, my consumer/student loan debt is something I would no longer have to pay if it was gone. This is why I choose to measure my net worth against it instead of adding the home loan.
Also – I really don’t track my net worth because it’s not a priority for me right now. This “zero” day snuck up on me. I didn’t know I had reached it until about two months after the fact. Anywho, it was kind of exciting when I realized I had reached this milestone.
All of this achieved while buying stuff for the house.
This summer has been crazy for so many reasons, but through it all, I’ve been able to buy a new dresser, guest bed and mattress, couch, and new washer/dryer.
There’s only one thing I can say about it all… God has showered blessings on me. I am grateful and so thankful.
Please don’t think that my life is perfect though. I don’t want this to seem like I’m bragging because there are plenty of areas in my life where I am struggling hard. My new job is more stressful than anything I’ve ever taken on before. My health has declined severely compared to where I was two years ago. My partner and I are still apart and I’m not sure when I will see him again thanks to the pandemic.
There are a lot of things that suck for everyone right now. These are just a few of the good things in my life, and I like to share some positivity when there’s so much ugliness in the world right now.
Thank you for reading. I won’t do another update until the end of the year, so we’ll see if I can get my debt into the $20’s. That would be amazing, but I don’t foresee it with the holidays and other upcoming expenses.
Have you been able to make any progress on your finances this year?