Wednesday, January 29, 2014

The financial update....part one

I wrote everything as one post and said WHOA!  Way too much information and way too long.  So I have broken it into 2 posts.  Today will be a basic overview and some of my thoughts.  The "meat and potatoes" of the information will be tomorrow.  If you are a bottom line kind of person, then you may want to skip the details tomorrow.  My feelings won't be hurt.  It is alot to take in.

The side bar reflects the current numbers, and there is a summary chart on the "Finest Geekery" page.  Anyone who has been around for awhile will know that
  1. I have always stated that we were not "gazelle intense."  I do think that Dave Ramsey has alot of good ideas, but we will not be as intense as he prescribes.  In a general sense, we are following the Baby Steps.  We do have an EF (and a savings account that is separate), although we are more comfortable with a higher number than his $1000 EF number.  So right now, we are on Step 2....snowballing debt.
  2. I started this blog in August 2009 with $76,649 of debt, that did not include a roof loan (again, I have talked about this before).  We were paying things down, and in 2011, we took a major back slide due to personal issues and car issues.  We "undid" all the paying off we had done in 2 years, plus $4k more. By May 2011, we were at $80k.
  3. I had estimated that by the end of 2013....we would be at about $62k of debt.  Had G-man's car not died, and one other thing that is explained in the CC section tomorrow....we would have been right there.
  4. By the way that we worked several things, 2016 will be the year that ALOT of debt is paid off, and our cash flow will change considerably (Retirement, Mysti Car, and PMI will all be paid off!)  We don't have to do anything but pay the monthly amount, and this stuff will be gone, irregardless of anything else that happens.
You may not agree with our choices....and that is ok.  It doesn't make the choice WRONG....it makes it wrong for you.  There are areas in our personal budget that G-man and I disagree....things only one of us are willing to agree to. In those cases, no changes are being made at this time.  While it may free up money to pay on debt, if we aren't agreeing, then it is a moot point.

If a crisis happens or we choose to buy something...and we choose to use our credit card, it affects the bottom line.  We are well aware of that.  You don't have to agree with us.   I don't always agree with all of you and your choices either....but that is your money.  And this is ours.  I don't mind people questioning things....I can't always explain every little detail that goes into a post.  But the antagonistic comments will not be published....I am not going to turn this into a feeding frenzy.  There are several things we would like to do....and are holding off.  There are several things that we are hoping we can put off....but we might not be able to.  

What's the Cost is putting a payoff date of September 2017 as of right now.  Of course, this is all subject to change, and does not account for tax refunds, the additional money that we will have once PMI is gone ($136), or other fluctuation.  If something goes up, like our oil bill....then it effects what we can pay "extra."


In tomorrow's post, I have outlined the terms of each debt, when it will be paid off, and any other information that some people are interested in.

One thing that I will be changing as of February (per the program) is that I have my "extra" money going toward G-man's car instead of the CC.  The program is showing that this is the better choice, based on interest rate snowballing.  This will require a little more effort as because the credit union is not where we do our main banking and I can't just transfer the money.  But I will just build it into the routine.


I know some of you think we don't have a plan.  Or that it isn't getting paid off fast enough.  Or if we didn't do XYZ then we could pay it off faster.  I direct you back to the top of the post.  I am laying it out there.  This is what WE are comfortable with.  You don't have to be comfortable with it....it doesn't impact you.

There is a plan.  It could all change if something happens, for the good or bad.  But there is a plan.   I know that stuff is going to happen, and I am not going to say that this plan is not malleable.  We may decide something else is the priority.  We may decide that we don't want to go in this order.  We may decide to say "screw it!" and do something that would be deemed as irresponsible.  In the end, the only ones we have to be accountable to are ourselves.

Stay tuned for the nitty gritty details, if you are interested....if not....see ya in another post!




26 comments:

  1. 2016 is slated to be a big payoff year for us, too. I'm looking forward to having those payments disappear! Good luck with your plan. I wouldn't worry about defending yourself; this is a personal journey and each of us has to make choices. Blogging opens us up to suggestions - and criticism - from others, but in the end it's up to us to decide what works. Glad to have you back!

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    1. 2016 is going to rock for both of us!!! Thanks for support.

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  2. Misty,

    You have to do what's best for your family. Don't worry about what people think, say, or do. It's all opinions, and we all have them. Just keep going, focus on what is working for you. For those who are not as "open" and feel the need to criticize, maybe they will pick up some of the debt. LOL.

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  3. 2016 works for me!! I hope nothing bad happens to derail your plans, and believe me it will be here before you know it... Do you have a backup plan if something happens like car issues again etc?

    HS

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    1. We are looking at ways that we can have it all paid off in 2016....but it may be a little out of reach. But I am not giving up on the idea.

      Backup plan....does crying count?? LOL Seriously, there isn't a solid back up plan. The main plan is once we are considerably further along in this, we would like to save up for a downpayment for a new car....mine is a 2005 and his is 2001. It will really depend on who is more needy. If a car up and dies....then we probably will do exactly what we did in October, get a loan. We have a maintenance fund for the cars, which should cover minor things. And if we HAVE to dip into EF, we have it.

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    2. Crying helps to ease the stress LOL... One question I had is what is your monthly take home income??

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    3. including the fact that the retirement loan is taken out of our pay...it is about 5500. House payment is 1650 (inc escrow).

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    4. I should do a budget post....and then all my "fans" can yell about how I am doing it wrong!

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    5. Not bad, and your mortgage is low. Do you deduct your mortgage interest on your taxes?

      HS

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    6. Heck yeah!!!! But we have adjusted our payroll taxes so that we don't typically get a HUGE refund. Would rather have that money to use during the year.

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    7. Hehehe, I'm the opposite I rather them save it than me spending it...

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  4. You know Mysti, humans make their plans as though nothing will ever happen to derail them. Life gets in the way sometimes and we all adjust our plans the best we can. Money is not the be all end all. Some people who have their money situation all figured out have other struggles which you or I could judge them for......but choose not to. In the end, I am accountable to God and my family. As long as my debt is going down and not up, I know I am headed in the right direction.

    Enough with the naysayers. Onward and upward!

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    1. I love to plan....and something always happens. I have been accused of NOT having a plan, or when my plan changes...I was supposed to have known that something was going to happen. I am perpetually amazed at people who just make a plan....and it never changes!

      Thanks!

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  5. 2016 is the year I pay off my debt also but as you have stated that is if everything goes as planed. I was just curious about the decision for the medical settlement but I can wait until tomorrow for that information. Good Luck to you!

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    1. 2016 seems to be a popular year!!!

      Medical settlement....do you mean our financial waiver for Bossy's supplies? If yes, then it is included in tomorrow's post (heck, for the drama that turned into, that could have been its own post!!!)

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  6. Do what's best for you and your family. Not what anyone else think is best. Good luck with everything!!!

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  7. Yes, 2016! Us too! Keep it going!

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    1. What's the cost is putting us at 2017 as the official debt free date....but we would LOVE to be able to make it 2016....even if it is on Dec 31.

      We need a 2016 club....what is the slogan.....get on that, Jennifer! LOL

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  8. Mysti plans, God laughs, I am having this sign made for you, I have one and it helps me see that I am not always in control, but if I were, If I were ,there would be world PEACE Dammit!

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    1. Oh Kim....I think I make a plan and EVERYONE laughs. It all works on paper, and then something smacks us upside the head.

      But I really do think at this point, most of the debt is on "auto." Like I said...2016 stuff gets paid off, without us doing any more than the minimum. And we don't have much more that we can comfortably put toward debt per month at this point.

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  9. Just like they say with retirement, anything helps. Even small amounts of progress. As you said, it's your life and we can't and shouldn't be telling you what to do about it. I am sure many people (ok, almost everyone) disagrees with me spending on my parents or my family or loaning them money when prospects of getting it back are bleak, but I will carry that cross myself and no one else. Good luck! 2016 is only 2 years away!

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  10. I think that you guys are doing a GREAT job! Some people in your situation would have just given up and gone on a spending spree. At least you don't give up right? Heck, Eric and I could have continued to live in the shack for a year and paid off debt a lot faster as well as saved up a ton more money, but our happiness level soared when we moved out of that place. I know it's a shocker to some people, but there ARE things more important than money : )

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  11. You are making head-way. That is awesome. It is so easy to accumulate debt and it takes so long to get rid of it. We are in the same boat. We were doing so great and then in this month alone we have spent $1300 on car repairs. UGH

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  12. Loving the plan! I haven't check in a while, glad things seem to be going well.

    I like the move to attack the auto loan for 2 reasons:
    a) It provides the quickest increase in free cash flow to apply elsewhere (debt snowball)
    b) It provides a huge mental BUMP when it is finished off

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