I have a lot of hopes and dreams. My most obvious one is to get rid of all this debt. Since we’ve last talked, our total amount of debt has gone down from $146,000 to $140,000. $6,000 of debt gone in 5 months, not terrible, but still not fast enough for me! Keep in mind that this is not including our mortgage, and we have no credit card debt, or car payments. This is just a huge school loan and a parental loan for help with our down payment on the house! Side note: law school is sups expensive!
In case you haven’t noticed yourself, (HA!) getting out of debt is hard! Whether you choose the snowball method or avalanche method, it’s usually the same in the end! Although, I will say if you choose the snowball method, depending on your rates, you might end up paying a little more in the end. Just make an educated decision about which way you want to go! There are so many reasons why I want to be DEBT FREE, so without further ado, here are my why’s to climb out of this debt.
- My son. This is huge. Every parent wants to give their child the best life possible. Short term, to me, this means lots of traveling, lots of sports, a great school…are y’all hearing the cha-chings yet?! Long term, I want to give him the best start possible for his financial freedom. Right now about 44 million Americans owe 1.48 trillion in student loan debt. Y’all. Let’s be real. Having a debt like this the moment you graduate is unreal. It can take months to find a job, all the while worrying about paying back your school loan. That’s something I don’t want him worrying about.
- Traveling. Absolutely. I was beyond lucky growing up to have parents who had a funded travel fund. By the time I graduated high school I’d already traveled to Australia, New Zealand, and Hawaii. There’s nothing better! Even though we still have a lot of debt to pay off we’ll be taking a trip out West this summer and I am SO BEYOND EXCITED! We’ve fully funded our travel fund and will not be racking up any extra debt with this trip. Sometimes you just need a break, and that’s ok! Just be smart about it 🙂
- Freedom. I want to choose what to do with my money. Not need to put my money somewhere. I can’t imagine how light we’ll feel when we make the final payment!
- Save for retirement. We put a little towards retirement each month, but not as much as we should. The earlier you start saving, the better! According to Real Deal Retirement, if you start saving at 35 instead of 25 you’ll loose out on $253,000 by the time you’re 65. Eeks!
- Save for college. Relates back to number one, but I want my son focusing on his education, not worrying about how to pay for books or rent or any of that. Pro tip: If you live in a state with a 529 plan, open one now for your child!! You can save money for a private education before college, or college itself, and when you take the money out it’ll be tax free! According to U.S. News, by 2030 the total cost for a 4 year public degree will be $205,000. Save your money where you can!
Your turn! What’s your “why” to get out of debt?
Photo by Hello I’m Nik on Unsplash
Photo by Becca Tapert on Unsplash