This month, we had a break in the storm clouds long enough to make another big payment on R’s car. God willing, we’re well on our way toward paying it off by June! I know I’ve said this before, but interest on debt is the WORST. We actually sent $1643.98 towards debt this month, but $529.18 was eaten up by interest. It’s so hard to make such big payments only to see it all but wiped out due to interest accumulation. At least as we go along, that will start to matter less and less.
|January 2016||January 2017|
|K Student Loans||$14,058.10||$12,544.43|
|R Student Loans||$47,879.41||$46,589.35|
This was only the second month that we’ve been able to make a huge payment on the car in the six we’ve been really focused. The other four have included a hospital visit and unexpected car repairs, which has meant we’ve needed to press “pause” and either replenish the emergency fund or save up for the expense. Lesson one: Emergency funds are necessary, because life does happen. Lesson two: Credit cards are a horrible system to rely on for emergency expenses, because what happens if we have two emergencies?
Speed Bumps Ahead
I’ve always been that guy who files his taxes as soon as the W-2 hits my inbox. It’s been nice in the past because R and I both have always gotten a refund, and if those settlement loan commercials are to be believed, “It’s my money and I need it now!” This year, however, is different. My part-time job had a really wacky tax withholding schedule which resulted in my tax withheld being waaaay lower than it should have been. So now, R and I have until April to save up a little over $1,000 in order to keep the fine folks at the IRS off our backs. At least we have jobs and income to pay taxes on!
Also, my car just hit 172k miles not too long ago, and the original spark plugs are still holding on for dear life. I’m planning on getting some much-needed work done, and though I have cash to cover the work planned, surprise repairs are not uncommon with the Goldy Oldy. I have learned that putting unnecessary repairs off until I can afford them is possible, though, so hopefully we won’t run into too much trouble.