Oh dear blog, we have not abandoned you. Just taken a lengthy hiatus, from writing that is, not from sticking to the original plan. As far as that goes, we’ve done pretty well. In our mid-May to mid-June cycle we put an extra $500 towards the student loan debt. June-July went even better. So that was good. However, I have a suspicion that the July-August cycle will not look so hot as I have gotten in the back-to-school buying frenzy spirit…for all three of us…two of which will not be returning to school. Oops.
On the up side, Aaron and I did some math on our remaining debt and figured that if we can pinch an extra $200/month from other areas of the budget and put it towards the loan payments, we can pay it all off by February of next year. That would be awesome except for this month we started auto-draft payments for our Roth (just peanuts for now; hoping to increase this amount by next year this time). Additionally our paperwork for life insurance is being sent in tomorrow which means another monthly expense will start shortly. Put this all together and we may be looking at wrapping up this snowball closer to next Christmas. Still not terrible.
So you may notice that we are deviating a little from DR’s suggested plan and starting our contributions towards our retirement before all debt has been paid. We were on the fence about this until we had a meeting over the summer with our financial adviser. He showed us a worksheet–that I remembered seeing long ago but somehow must have repressed–that stated that if we desire to retire somewhere between the ages of 62 and 65 (I forget the exact age) and want to maintain our standard of living, then we should aim to put away something like $750/month. Say, what? Fortunately it wasn’t anything like a pressure-filled meeting where we felt guilted into committing to a dollar amount then and there; but after careful consideration Aaron and I decided to devote $50/month towards our future living. For now. So with the end of the snowball approaching, I’m staring to glean that snowballs melting does not equal party time. More like starting a new chapter, during which we save to be old someday and maybe some other stuff. I should probably read those later chapters again : )