So it began…repayment!
Looking over my plan, I realized that it is so easy to get in way over our heads. I realize, now, how bad my spending habits were. Something has to change, and I guess it will have to be me. My goal is to be debt free (mortgage excluded) by 2025.
Let’s do this
So I decided on Debt Avalanche and created my own little motivational tool. I took a pad of paper and filled out my bills in order of their due dates. This is purely for my own interests as these bills are all set up for automatic payment. I used my friendly amortization tables to show, on each page, the results my payment has on the balance for each account. This visual reminder is not too awesome at the beginning, but as things pick up steam, my repayment is going to look very rewarding.
Repayment = Discipline
I have a personality type that likes to flirt with extremes. For instance, I could give myself more “fun” money and just accept that I’ll be paying longer on everything. However, I need to get rid of this debt sooner rather than later. So I set myself a rather strict, but reasonable weekly budget for misc. spending. Through this, there is no reason I could not double- and triple-pay on some accounts when it becomes their turn.
I also suffer from flashy-item syndrome. Anytime I see something cool, or interesting, I start to think of ways I could incorporate it into my life. That is how I ended up with a smart home. However, it is different this time. I truly want this, and I strongly believe that when we want something badly enough, we make it happen.
This is going to be tough.
I sometimes feel that I am not wired for this, but I don’t have access to unlimited amounts of money. One great thing that may come as a result of this repayment process is a shift in mindset. When I finish paying everything off, I will have a much greater appreciation for spending my money wisely as I’ll have a better grasp of the time it takes to get out from under that boulder.
The numbers may be scary at first
I have three payments before my first account will be completed. After that, nothing until eight months go by. Next, I sit still with my payments for another 5 months before the big ones start happening. As you see, I don’t start tackling my biggest challenges until July of 2018. December 2019 is when I start getting hyper-aggressive towards my student loans. Barring anything happening, I will send my last student loan payment November of 2024.
Don’t give up
Another nice benefit will be the better feelings of knowing that I am disciplined enough to accomplish this. Maybe I can find a way to turn my goal of getting a set of washboard abs into a system like this.