I’m excited so let’s jump right into this:
This was the month that my student loan deferral ended, so to mark the occasion, I sought to make as big a payment as possible by attacking my budget from several different angles. For more details, see my July 2013 goal post.
$2050.00 – Make baseline payments
$ 353.49 – Empty the piggy banks! depositing coins, cashing out rewards, selling gift cards, exchanging foreign currency
$ 64.02 – Sell stuff I don’t use
$ 14.25 – Reset $10 food budget every day and send excess to debt
$ 190.65 – Turn impulse buying into impulse debt payments
$ 365.38 – Lower my 401(K) contributions from 11 to 6%
$ 142.90 – Hustling
$3180.69 – Total sent to student loan debt!
Yes! This is the biggest monthly payment I’ve made on my student loans so far and it feels amazing. I won’t go line-by-line because that would be boring for you guys, but here are some highlights. Ask if you want more details.
- Empty the piggy banks: It’s embarrassing that I was sitting on so many rewards — store, credit card, and passive — as well as sitting on so many graduation gift cards that I probably would have never used. Glad I did this now.
- Reset $10 food budget every day and send excess to debt: Didn’t make it under the $10 limit five times. I did learn that the formula is pretty simple — eat breakfast at home, lunch in our subsidized cafeteria and make dinner and I’ll get under $10. Eat in on weekends and I’ll make it by a lot. As promised, I will not talk about the times I didn’t make it.
- Turning impulse buying into impulse student loan payments: I love this and don’t plan on stopping any time soon.
State of my debt, and my net worth update
Alright, let’s see the effect that this had on my debt and net worth. Here’s a spreadsheet:
I highlighted a few numbers:
- In red: I’ve already discussed my payment to student loans.
- In white: This was a surprise; I lowered my contributions to retirement accounts this month and yet it went up more than usual. It was very welcome, but I can’t take credit for this since I don’t control the markets…yet…
- In blue: This is my net worth; I’m at negative $109,100 — a massive one-month increase of $5,100. I never thought I’d say this, but I can’t believe how excited I am that I’ll soon be at a negative net worth that’s under $100,000. What’s almost more unbelievable is the number to the right of all that; I’ve increased my net worth by $42,100 since the start of all this! I’m extremely proud of my progress and I couldn’t have done it without you guys!
Alright guys. I await your comments. Tell me what I’m doing wrong, what I should change, what I should shoot for. Anything.