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Extra Payments

April 23rd, 2022 at 11:04 pm

Paid an extra $25 on the mortgage and student loan each, now I'm officially under $8000 on student loan number three (3). See sidebar. 

 

I have to invoice my client on Monday. They're pretty good with paying the bill timely. If I get it before I leave for my trip, I'll pay another $2,000+ on student loan number 3. 

 

I'm so excited to see this number decrease. It's a matter of weeks by the time I pay this loan off then it's officially onto the last loan, that's about $28k. This will take some time because I'm going to slow down while I max out my IRA. I'm shifting my focus a bit after paying student loan number 3 because I'm behind on saving for retirement and I want to make sure I max out my IRA before the end of the year. 

 

I plan to pause student loan number 4 since it's interest-free for two months and throw everything at the IRA, then tackle the student loan. 

 

I know this isn't the Dave way but it's my way and it works for me. Age is not on my side. 

Posted in Reaching Financial Freedom, Debt, Goals | 5 Comments »

5 Responses to “Extra Payments”

  1. LuckyRobin Says:
    April 24th, 2022 at 04:09 am 1650769771
    1650769771

    I understand the need to contribute to retirement even while having debt left. When you are on the side of the hill where age becomes a big factor, it makes sense. Do you have any projections on how long it will take to pay off the last debt based on your current income?

  2. Lots of ideas Says:
    April 24th, 2022 at 05:23 am 1650774229
    1650774229

    It makes sense to get your IRA maxed out because you can only contribute so much each year and you don’t want to lose that precious space if there are bumps in the road before year end.

    Dave’s plan is good when you are young and in debt, but not so great, IMO, if you aren’t so young and your debt isn,kt credit cards with crazy high interest rates.

  3. Amber Says:
    April 24th, 2022 at 06:34 am 1650778478
    1650778478

    @LuckyRobin. I’m thinking just over one year to pay off the last loan. I’m averaging about $2k a month in payments.
    My issue is that I’m a contract worker so anytime things can change.

  4. terri77 Says:
    April 27th, 2022 at 07:59 am 1651042771
    1651042771

    Some things make sense with Dave Ramsey & others don’t. You have to weight out your own personal situation. I tend not to put too much stock in his investment advice.

  5. rob62521 Says:
    May 1st, 2022 at 08:20 pm 1651432844
    1651432844

    You are right, your way has to work for you. I agree...put that money into retirement when you can. You'll be glad you did. You have done a wonderful job getting those loans paid down and you'll succeed on this one too.

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