Tuesday, May 20, 2008

Debt Update & Financial Goals

I finally was able to sit down with my hubby tonight and go over our finances - including debt. I had reported last week approximate totals. I do plan to keep tabs in the side bar of my goals. These will change and become more defined as time goes on.

Official balances and financial goals...

Credit card debt $1,678.02 - June 2008.
Car loan $7,941.93 - June 2009.
Personal loan $16,568.93 - June 2010
Hubby's student loan $5,362.62 - December 2010.
Six Months basic living expenses in savings $18,000 - December 2011.

This is based on living simply with no major catastrophes. They seem like a long way away and right now I feel this is going to be supremely hard. Three and a half years of this could really be good for us too. The rest of May and the entire month of June will be a really good test I think. We tend to spend more money on the weekends so our challenge is to find fun things to do that are little or no cost. We also tend to spend more on groceries than budgeted. We will watch this closely and the hope is that will help not only our wallet but also our waistlines.

We have a few obstacles in our way such as a planned move to a new house next year. This is unavoidable and in order to do this we have to finish some projects we started in our current condo. We could extend that for two years instead of one but that will be decided later on.

This does not take in to account a home business my hubby and I want to start to generate more cash flow to pay off debt even faster. We are motivated to not only get the debt paid off but to work for ourselves and quit our jobs entirely. We have three criteria for leaving our current jobs; getting the debt paid off (not including our house), having six months basic living expenses put away and bring in what we are currently earning at a job.

We have six years until my hubby's youngest is out of high school. At that point we do plan to move to another part of the country where the cost of living and housing is less expensive. His kids live with us part time so a move is really not in the cards at this time. This is why we will not worry too much about paying our house off because when we move we will need less of a house which should cost us less.

Keep watching for updates!

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