We did it. This morning, I entered the last payment on Kris’ student loan, which means we kicked $19,000 of debt to the curb in 2015. Goodbye, Great Lakes! How does it feel? Pretty good. I’ve been thinking about this day for a long time and am pleased we made this a priority. It just goes to show what planning can do because I am not a natural saver. I love spending money. It’s my favorite, actually. So how did we do this?
Caveat: of course, it helps that we are DINKs and have money to throw at debt, but it wasn’t without sacrifice.
Every dollar had a job to do and was already accounted for. There was no “leftover” at the end of the month to spend on silly things. I planned ahead of time for expenses that are out of the ordinary, such as license registration and car insurance, along with the usual monthly expenses. That gave us an idea of how much we could put toward the loan every month, and the goal of finishing it in September.
We cut back. This is sort of self-explanatory and a no-brainer. Less dinners out on a whim on Friday night (Outback, we’ve missed you) and more meal planning at home. Less impulse purchasing on iTunes and more thought put into needs vs. wants. This part wasn’t easy and we weren’t perfect, but having a budget of $100 “fun” money made us recalibrate the extras we buy every month. This was slow and difficult and felt like a punishment sometimes, but on the flip side, I appreciate $100 a lot more now that I did when I would easily drop that at Target without a thought.
Side hustles! I resold clothes on eBay and wrote a few freelance articles. Kris also sold an article and he worked on a project with a professor for some extra cash. We sold some furniture and some other things we weren’t using. The extra cash helped us get through some tight spots. I don’t know if these are something we can develop further, but it was exciting to have a little unexpected cash.
What now? Our other big goals were Europe (ticket purchased!) and LASIK for me (appointment is made!). We are now saving up to afford those things and we look forward to working on a solid emergency fund and throwing a little extra toward retirement. Or, you know, some coconut shrimp at Outback every now and again.