Crunched the numbers, and I should be able to add $706 on Friday to my student loans, brining the month to date payment of $1,000. God I pray Congress, approves through the end of the year, zero interest, but if not it, it was good while it lasted. Last week I added an extra $100 to the loans.
I’m hoping to get the closing on the refi by the end of the month, that way I won’t have to make July payment on the mortgage and I can keep those funds in my house mortgage fund, which will be fully funded. The goal was to have at least three months mortgage save, separate from my emergency fund.
I’m excited to get this mortgage payment knocked down by almost $300 a month, this includes escrow. Even with a reduce payment I will continue to add the extra $100 a month. I do not want to stop doing this unless something changes financially.
By paying off the credit cards, reducing my monthly mortgage payments and my side gig, I’m able to save, contribute to my 401(k), pay extra on the mortgage and tackle the student loan debt simultaneously. I know Dave says not to tackle the mortgage, nor contribute to the 401(k), this method gives me a peace of mind.
Speaking of 401(k) I vowed that when ever I paid off a debt I’d add extra to my contribution, though I can’t do an additional $25-$50 as planned, I’m upping my contribution by $10. That will be $60 a pay check. At 46, I can’t afford not to make a change whenever I free up some cash.
Student Loans
June 21st, 2020 at 08:02 am
June 21st, 2020 at 02:14 pm 1592748844
I think when it comes to priorities, we each have to get ourselves informed through research (like Dave Ramsey) and then set up our finances to address our own situation and preferences (or fears). I'm with you on retirement: at your age I would put money in that account even while paying debt. You can't get that compounding opportunity back.
June 21st, 2020 at 02:35 pm 1592750104
June 21st, 2020 at 11:33 pm 1592782395