Tuesday, August 17, 2010

So, what's the new plan?

Now that my credit cards are paid off (ah, let me just bask in that phrase for a while...okay, done), I have been pondering my budget. In some ways, not a lot changes. I am still putting $100 per month in my savings and still using my envelope system for eating out. But I am going to allow myself to clothes shop (within a budget, of course) and need to figure out my plan for paying off my car payment early.

So, here's the new goal:  I want to have my car paid off one year early, in June of 2011.

I used a debt payoff calculator, and figured out that if I can come up with flat rates of $2500 in the next ten months (summer school, tax returns, and yearbook stipend should cover this), and pay an extra $150 per month, I can meet my goal. (It's like paying $400 extra dollars per month, but some of the funds will come in big chunks, so it made sense to divide it this way). I think this should be do-able. My biggest concern is that I do have some furlough days this school year, which means I will lose some of my paycheck money in various months. But, with careful budgeting and creativity I think I can make it happen.

I am excited to have a plan and the thought of owning my car outright and not having to pay A LOT of money for my car each month!

4 comments:

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  2. Great! If you can add the extra payments earlier in the next 10 months that will definitely speed things along as well since you won't be paying interest on a larger balance. Great work, keep it up!!

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  3. Good luck, can't wait to hear about your progress!

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  4. Congratulations on having paid off your credit cards! Definitely enjoy that feeling!

    I'm sure that the added payments on your car loan will kill the interest and you'll have that paid off in NO time at all.

    Use your windfalls and you've got it made.. having the extra money to then put to your next loan will be incredible.

    Please visit my blog too for added encouragement!

    www.debtfreemarriage.org

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