Quantcast Finally Frugal: May 2012

The bumpy road to financial independence. . . .


Thursday, May 31, 2012

Interested in interest. . . .

Oh!  I forgot to mention one thing yesterday:  it has been very, very gratifying to see that a greater percentage of my student loan payments are applied to principle as opposed to interest.

For example, you'll see in the table below that in late 2010, when I started making payments, only 67% went to principle payment while a whopping 33% went to interest!  Now that my overall balance is shrinking, 93% is going to principle on average, while only 7% goes to interest.  Hallelujah!

Total Paid   Principle Interest
        %P              %I
2012  $11,125.00    $10,371.82    $753.18    
93% 7%
2011  $ 12,482.00  $ 10,289.33

82% 18%
2010  $   2,410.00  $   1,615.01  $   794.99
67% 33%

$ 26,017.00

 $ 22,276.16

 $ 3,740.74

86% 14%

Wednesday, May 30, 2012

A mid-year update. . .

Whew!  I know, I know, it's been awhile!  In fact, it's been so long that Blogger has a completely new format and I'm not sure I know my way around anymore. . . .

However, I have some news!  My student loans are now down to $39,071!!!!  I started the year at around $49,300 so I think I'm doing well for being five months into the year.

My goal is to pay my loans down to $20,000 by the end of the year (an ambitious goal, for sure) so in January I can sell my stock and pay it all off once and for all!

What that means, though, is that I'll have to pay at least $3,000 per month towards my student loans for the rest of the year.  Not an easy feat, especially when you consider that I am only averaging $2200 per month at the moment.

The good news is that I am on schedule to make more from my assorted part time jobs than I do at the full time job (now do you understand why I've not had the time or energy to update my blog more frequently?)  However, my earnings fluctuate monthly depending on how much teaching work I am offered - so I can never really predict until the month before how much money I will bring in.  This creates some anxiety for me, though I am simply grateful for the extra work most days!

Though it is a tough road and my friends and family are still wondering if I'm nuts (I must admit I wonder myself as I go from job to job to job), I can finally see that I may actually be free of student loan debt in early 2013!! 

So for those of you out there who are in debt up to your eyeballs (or armpits, or belly button. . . ) this CAN be done.

It requires sacrifice, though.  A LOT of it.  I have a friend who is in the same boat that I am (or was) in.  The difference is that she is not willing to work more hours to make a dent in her student loans - she is deferring right now.  She will have that debt for years because, like me, she works in a field in which people almost never get 'rich'.

I chose to sacrifice my time now to knock it out more quickly.  That doesn't mean my decision is any more 'right' than hers is, but it is so difficult to watch someone fritter their time away in front of mindless cable TV shows while lamenting the state of their finances.

So here's a wrap-up of where I've been and where I am (the mortgages are still KILLING me):

Here's what it looks like now, in late May 2012:

Second Mortgage Debt: $31,400::::$25,442

Student Loan Debt: $61,762::::$39,070

Primary Mortgage Debt: $167,500::::$155,191

Here's where my debt stood at the end of 2011:

Second Mortgage Debt: $31,400::::$25,763

Student Loan Debt: $61,762::::$49,438

Primary Mortgage Debt: $167,500::::$156,344

And here's where I was in mid-October:

Second Mortgage Debt: $31,400::::$25,888

Student Loan Debt: $61,762::::$51,881

Primary Mortgage Debt: $167,500::::$156,757

Ciao, friends!  I'll definitely update at the next milestone, whatever that is (hopefully soon at $29,000 student loan balance). . .

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