It’s been a while since I have updated you on my debt-free journey. I started 2021 with $30,204.06 of debt, not including the mortgage. The breakdown of my debt is a car balance of $9,483.85 and my student loans were $20,720.21.
My debt payoff has been slow and steady this year. My goal for this year is to pay off my car.
As of August 1, my car balance is $5,446.64, and my student loans were $19,371.31. I am excited that my student loans are under $20k. I have private student loans so I am still getting charged interest on daily balances. I could have deferred my student loans but it would still gain interest on it and I want to pay it off sooner than later.
I have been saving for emergencies, paying off debt, and investing in my 401k all at the same time. You can do it all at the same time. Paying off debt and building wealth for the future is the best thing for me. Remember to do what is best for you. Personal finance is personal.
I have a side hustle as a virtual assistant and I am putting the money I make from that on my car loans. Also, if I don’t buy gas or spend less on groceries during the week, the extra money goes into my debt.
My car loan could be lower than now, but I am concentrating on building my emergency funds while paying off debt. I think last year proved that we need 6 to 12 months of emergency funds to cover our expenses. I have enough money in my savings account to pay off my car, but I would rather have cash if anything happens. By the end of August, I will have 4 months of living expenses saved up. Remember Cash is King.
How is your debt payoff going?
Woohoo! You paid off a full five figures of debt in the first seven months of this year and that’s worth feeling great about. I think it’s a good idea too to let off the gas a bit in favor of building your emergency funds; for the majority of folks out there (including myself) it’s the best decision for the peace of mind alone. Looking forward to your under-10k and debt-free milestones!
This is great!