Debt Reduction and Savings Statement – January 2010

by · 9 comments

Our goal progress for January 2010

Each month I post these Monthly Debt Reduction & Savings Statements so I can continually compare our current debt against our starting debt from back in January, 2009 – when my wife & I began our Debt Free Adventure – and summarize our progress toward debt free living.

Like charts/graphs better? Look in the sidebar for those.

A debt free adventure can be a long, dry road… but continued progress in all areas of personal finance is a sweet breath of fresh air!  Based on our financial goals for 2010 here is the progress we made through January of 2010.

1.  Lending Club debt goal

Our personal debt consolidation loan of $11,080 – secured through Lending Club in August of 2009 – has been reduced down to a principal balance of $4,243.68 in just five short months!  If you’re interested in doing something similar for your debt situation read my advice on debt consolidation and my Lending Club review to see if borrowing through Lending Club is right for you.

Debt reduction progress = $2,300.62.  We were able to contribute this much thanks to continued side income growth (see goal #4.)

2.  2nd mortgage debt goal

Although we do not intend to pay much more than the minimum payments on our 2nd mortgage until after we pay off our Lending Club loan, we are paying and extra $50 toward the principal each month.

Debt reduction progress = $59.27.

3.  Emergency fund savings goal

We save $100 each month through our Capital One 360 automatic savings plan and will continue to do so until we reach $3,000 (one months expenses.) This is not the preferred Dave Ramsey $1,000 plan, but rather the preferred Matt Jabs 75/25 savings plan:-)

Savings progress = $100.00Interest earned on this account was $2.19.

4.  Side income growth goal

Side income growth actually slipped a bit this month due to several factors (cash-basis accounting used):

  1. Lower Internet searches to debt topics during Christmas season.
  2. DFA had an extreme blog makeover that shook things up for a bit.
  3. I moved all DIY posts their own domain on diyNatural.com.

Although earnings were down for December and early January, things are picking up nicely as January marches on.  Despite the welcomed uptick I still have a long road ahead if I am to hit my goal amounts of $5,000 per month.

Other savings

The other savings accounts we have that make up our 75/25 savings plan include:

  • Vacation Fund = $100 added
  • Next Auto Fund = $100 added

Thoughts

I am very happy with the amount of debt reduction progress we were able to make to the Lending Club loan this month.  I am hoping to pay this loan off in March, but that will depend on a solid income tax return and sustained side income growth.

Aside from that I am also quite happy with the direction DFA is taking as a source of side income.  I have been mixing the focusing of article topics to include highly searched for personal finance topics, along with personal debt free adventure updates such as this, and the new Ask Matt Jabs personal finance column.  These three areas are allowing me to deliver a solid balance I have been striving to find since I started writing over a year ago now.

photo credit to JohnRawlinson


Betterment is one of my two favorite ways to earn interest on my savings! They have an awesome program for the Average Joe to save and invest simply and effectively. There are no minimum balance requirements and no transaction fees. Read my Betterment Review or open an account to get started earning now.

1 Ken

Conratulations on making a dent in your debt this month.

2 BG

Wow, great progress on that LC loan. You have that thing really snowballing now.

3 Christine

I’m going to have to go back and read alot of your posts to see how you did that. I’m drowning in debt.

4 karyn

We’re hoping to clear all of our debt (aside from mortgage) and to start our emergency fund with our tax refund. I’m curious if you have any suggestions regarding the use of tax refunds. Keep up the inspirational work!

5 MoneyNing

Just realize you do this on a monthly basis. I think it’s great to lay everything out and track everything down to the cent. Accountability is an incredibly effective tool and I look forward to seeing more!

Good job paying off your debt and I will be buying wine to celebrate with you on the day you become debt free (just remember to remind me buddy :))

6 Jeff

Very nice job Matt, you continue to be a great inspiration for me. I noticed the updated lending club totals in your side bar before I read the article and thought, “damn his rockin’ it”. After reading it, yes you are sir…

7 Matt Jabs

Just wanted to send a “thanks” shout out to everyone who commented… I appreciate your participation in our DebtFreeAdventure!

8 Daddy Paul

Very good every debt is laid out. To think the road is going to be easy is a road map for failure.

9 Dollars Not Debt

Great job! It is a long road, get some good tires. I too am on the same highway traveling down the debt payoff lane.

Previous post:

Next post: