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Saving & Debt Payments

May 27th, 2022 at 11:33 am

I received my $800 payment from my long-term client,  paid my tithes of $80 and I have $720 left. I plan on keeping $500 in my checking account and using $200 towards savings and debt.


I always struggle with how much to save, pay towards my snowball but for savings I decided to round up and for debt I decided to round down. 


So for today I will be saving or paying the below: 


$29.63 EF

$13.04 car fund

$16.96 baby EF 

$15 vacation fund 

$50 student loan

$68.59 mortgage 

$20 IRA 


I'm so upset that I won't be meeting my June goal of paying off my student loan; however, I have to remember that I came a very long way and by the grace of God I was able to do what I have done. Actually, the goal was to pay it off by December but I was doing so well that I thought jube would be the month. 


I think that when I get the settlement check rather than paying the September mortgage and the November HOA, put that money aside. My thinking is I should land a job/contract by then and the money saved I'll just throw it at my student loan. If I don't get a gig well at least I know I have the money. 


Seems like saving and paying debt is the story of my life. I can't wait to reach financial freedom. But is that such a thing? 

1 Responses to “Saving & Debt Payments ”

  1. Lots of ideas Says:

    Amber, I think $10,000 in debt relief is coming…my fingers are crossed for you!

    I think you are making a good decision to hold on to money rather than pay on the student loan for as long as interest Is frozen. I think that will get extended until year end.

    You are making good choices to get to financial freedom. You’ve purchased your house, and I think you are on track to paying it off before you retire. That removes a big expense from the budget, although you still have taxes, insurance, HOA and maintenance.
    Have you ever gone on the Social Security website to see what your benefit will be?
    Have you added up the amount you paid to debt in each of the last three years?
    Average that, and that is the amount you will have to save (Or spend) plus what you save now, in the remaining years until retirement.
    How much does that, added to your current savings, generate at 4%, 5%, 6%?

    Adding your social security and what your savings will generate, and assuming your current expenses less mortgage will give you an idea of where you will be at retirement.

    Some will tell you Social Security is going away…I don’t believe that.
    Once you are 72, you have to take some retirement savings out, but that doesn’t mean you have to spend it - you can continue saving it to generate income.

    If you have a ‘gap’, you can use withdrawals to cover it, but once you do that, the amount earning for you drops - a spreadsheet can account for that.
    I plan as if I will live to 100…I hope I don’t! But you know your family’s history - a lower number might be more realistic!

    I recommend doing this exercise because it will either put your mind at ease or let you know that you need to work longer or earn more know or make some other change to your plan - like selling your house or taking a reverse mortgage later in life.

    You have come so very far!

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