Friday, February 25, 2011

I heart tax returns

This morning my Federal Tax return was direct deposited into my account. Hallelujah! I've moved the money around already and updated my sidebars accordingly. I was able to get my E-fund back to the Dave Ramsey approved $1,000, and make a decent payment on my car. I also have my old apartment deposit, but the check has been a headache. The roommate and I are depositing the funds tomorrow, so that will be another decent chunk to put toward my car payment. Yes!

I also found out that my March paycheck won't have any furlough days taken out (that's the first time in months my check won't be short!) and I've covered other classes five times this month, so that will be a noticeable amount on my March paycheck next Friday.

Last night I started doing some thinking about my plan when my car is paid off. I know according to the debt snowball plan, I should put all the money that was going toward my car toward my student loans. I was doing some number crunching, and it I continue to be just as aggressive, I can get my student loan paid off in a year (I think). My other idea is to split up the car loan amount into different categories-maybe another $200 to my loan, $200 to my 403(b) and the last $100 to a travel fund. I can't decide what I want to do. If I go that route, and still funnel extra money (taxes, extra in my budget, etc.) toward my loan I could probably have it paid off in four years. It's very low-interest and generally my student loan payment hasn't bothered me...but lately when I think about the prospect of being 100% debt free by 30...that sounds pretty appealing.

I have some time to think about this, since my car won't be paid off until the end of June (at the earliest), but I also want to make a plan for what I will do with that extra money so it doesn't just run through my fingers once the car debt is gone. Any thoughts, oh wise readers?

1 comment:

  1. My student loan doesn't bother me either, so I am putting my extra money towards my emergency fund (I'd like to have 6 months worth of expenses in the bank), a travel fund, and saving for another car. If you put $200 a month into a car fund and save for 5 years you could probably buy your next car in cash. And that, my friend, is living the debt free dream!