Original post:http://ift.tt/2irkTSY
First update: http://ift.tt/2iWC5TT
After an insane year, we are completely out of credit card debt! We have paid back a total of $67,000 in one year. We made our last payment on our 8 year anniversary, Dec 31st, 2016. So we entered 2017 with no cc debt.
We have also refinanced our home to a 15 year mortgage for 2.75 interest (was 5.12), and our student loans are refinanced through SoFi.
We have zero other debt, and are now saving between $1500-2000 a month.
What worked for us (financially...the emotional side of it was all thanks to therapy and love): I set up a budget through Google sheets, EVERY penny was tracked and accounted for, if people are interested I can take a screen shot of it to show how I broke all the expenses down. We also tracked exactly how much we paid in interest monthly and daily in order to recognize how to prioritize what to pay back. We have lowered the amount we pay in interest monthly by $1200. If you've never done it...I would really recommend taking the time to figure out how much your debt is actually costing you. (Total amount of loan × interest (change to decimal first!) divided by 12) it's not exact but it gives you a good idea.
We are still adjusting to settling into a calmer way of life after the rush of this past year. We are enjoying our 5 month old daughter, and working to find ways to connect and enjoy life without spending. We asked for memberships to zoos and museums for christmas from family so we can go on day trips. We budget date nights in advance and are already starting to pay for our vacation in Jan 2018.
As far as other financial planning...we are getting our retirement squared away ( he will be contributing 10% with an 8% company match, I have a pension and a 403) and setting up a 529 for our daughters college.
Although it was hell for a while, I'm grateful for the lessons learned through this past year, I was living in denial before, and now I feel like I could take on anything. I have confidence in my ability to manage money, and my husband now has a much deeper understanding of himself and his vices.
Thank you for your help, this subreddit made such a difference. Thank you for your encouragement and advice, this is a great online community!
Submitted January 08, 2017 at 10:56AM by LunsheaPyralis http://ift.tt/2jr00eA
