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 = $100.00. Interest 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):
- Lower Internet searches to debt topics during Christmas season.
- DFA had an extreme blog makeover that shook things up for a bit.
- 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.
The other savings accounts we have that make up our 75/25 savings plan include:
- Vacation Fund = $100 added
- Next Auto Fund = $100 added
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 . 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
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