I realized after I had left the house that I forgot to take pictures for you!!! I am soooo sorry! If you are really upset about this, let me know and please take this adorable picture of Tasha as a peace offering!
Today is a monumental day!!! For a while now, I keep seeing the ads on facebook that are all about the Obama forgiving student loan debt (not getting into the politics, this is not the time or the place) and wishing that that could be LD and I. Unfortunately, our student debt has not been forgiven and there is still some debt to go, but thanks to working on the mortgage paperwork, I have discovered that we have not only broken even between our assets and liabilities, but are now worth something! Yay!!! Ok, maybe no one else is excited, but I totally am!
We have crunched the numbers and have discovered that since the time we have both had full time employment (about a year now), we have paid out just under $20,000 in debt between car loans and student loans. I am not that excited to go into more debt with the mortgage, but our goal is to be debt free (not including mortgage) within two years, and then go on to pay off our mortgage within 10 years. Yes, that includes home renovations and, eventually, having kids. How do I plan to do that? By careful financial planning and budgeting. As much as you might hate it, it always comes down to the numbers.
I was excited to come across two spreadsheets this weekend that I found to be really helpful for figuring out some debt planning. The first is for multiple debts, such as student loans, car loans, etc. and even has a column for when you pay a little extra for one month only. It also does the work of snowballing the debt for you. If you don’t know what snowballing is, it is when you pay the minimum on all loans except for the highest interest rate loan and dump all your money into that loan. When you are done paying off the highest interest loan, you move to the next one and dump the same amount of extra money plus the minimum from the loan you just paid off into the next highest loan. I love this method because it is the fastest way to pay off your loans and you pay the least amount of money in interest. Don’t believe me? Play around with the spreadsheet which you can find here.
The second spreadsheet I found, I have been tweaking a bit to better fit my needs, but if you just need the basics or know how to do basic programming in excel, this spreadsheet might work well for you for mortgage payments. I added a column for the one time extra payments so that when we come in under our budget, we can add that amount to our spreadsheet.
I hope these tools work well for you as well. I am excited to use them as we move forward in our “worth something” life!