Over the past year I have hesitated to talk real numbers. Rather than feel ashamed, I’m going to accept the fact that I am in a fortunate place in my life today. Tomorrow it might not be the case. But today I am in a fortunate place. I did work very hard to get where I am. I defied my parents and got an education. I’ve got the student loan bill to prove it. I work tirelessly at perfecting my work so that I can complete more work in less time. I earned the numbers I am about to disclose. Nobody gave me a job. Heck my college didn’t even help me find my first job. Nothing has ever been handed to me. Here are the real numbers:
Prior to the global pandemic I was paying $500 monthly towards a ROTH IRA and paying $630 extra every two weeks towards my car. That is $6,000 a year for my ROTH IRA and three extra payments every two weeks towards my car loan in order to pay it off early. Once I was sent to work from home in mid March, I got this really nervous feeling in my gut about my finances. I only had about $1,000 in my emergency fund because I was aggressively paying off my debt. I truly panicked. Like the melt down tears kind of panic.
Since April, I stopped contributing to my ROTH IRA and paying extra on my car. I fully intend on contributing the maximum amount to my ROTH IRA this year, which I need to save an additional $4,000 to make this happen. I will not be paying extra money towards my debt until I have $15,000 in cash.
$4,000 for ROTH IRA + $11,000 in SAVINGS = When I Can Start Paying Extra on Debt
Yes, I will be paying extra money in interest. Yes, it will take me longer. But I am a fighter, I don’t plan on giving up. I plan to simply adjust my strategy.
From this point going forward, each month I will post the real numbers.
June Total Cash: $5,899.37
Savings Goal: $15,000.00
Money Left to Save: $9,100.63
Current Car Debt: $12,927.67
Current Student Loan Debt: $46,581.24
What am I doing differently to achieve my savings goal? I am sticking to my budget with a laser focus. Any extra money that comes in goes directly into the total cash goal. We are forgoing on a vacation this year considering the global events. We will be discussing birthday and holidays to ensure that we do not overspend. I have already considered a part time job. The part time job needs to be carefully selected due to my health risks. I am continuing my no spend year. My gosh this no spend 2019 and 2020 has really helped me.
Cheers to savings!