TGIF! Thoughts for the Weekend
Next week, I’m going to hit the $20,000 mark of my debt repayment progress. With a little more than $8,000 to go, I can not only see the finish line, I can see what will come after it. Entire paycheques will be mine. I can save even more for my future. And, heck, maybe I can travel a little bit too. (Hawaii, anyone!?)
When I started this blog, my original debt-free date was April 30, 2014. My new goal is to be debt-free by June 8, 2013 – two years from the date I was maxed out. To make that happen, I’m going to have to challenge myself to cut back on my spending again. By how much? Well, this week was a real eye-opener for me. I stopped ignoring the fact that my impulse buys were starting to happen more regularly and focused on the fact that it’s slowing down my debt repayment progress. It’s time to make a new plan (stay tuned for that next week).
This weekend, I’m going to sit down and crunch some major numbers. First, I’m going to write a monthly budget for every month from November to June. Then I’m going to calculate how much of my take home income could go towards debt, factor in my 2012 tax return and move whatever numbers around that I have to, to reach my goal. Do I sound like a crazy person yet? Good. Because if I’ve learned anything since starting this blog, it’s that setting SMART goals + tracking your progress = the best way to make a dream a reality.
Doing these two things has helped me accomplish a number of other goals this year:
- I finished my degree (and with a few days to spare)
- I fundraised my goal amount for a dream opportunity
- I lost 20 lbs. (so far) with #pfworkout
- I moved across the country in 20 days
- I gave up what was “safe” and went after what I wanted
For the next two days, I’m going to try to stay motivated by all of this, while making a plan for the next 7.5 months. If you have any tips and tricks to share, I’d love to hear some of the accomplishments you’re most proud of and what it took for you to make them happen! I am constantly inspired by people who have paid off their debt and/or reached their Emergency Fund savings goals. Or, if it’s easier, you can just tell me all of the fun things you’ll be doing, while I’m plotting…
Happy weekend, xo
Congratulations on your fantastic progress todate, Cait. When we moved to Toronto from Montreal, at that time the house prices in Toronto were double those currently in Montreal, however the average salary incomes were comparable in both cities. On arriving in Toronto and buying our house, I was able to prepay down and pay off the mortgage over 15 years. What inspired me was calculating how much interest I was saving each time I made extra payments. It was ongoing mental rewards because it was the most guaranteed investment savings that I was making over those years, as compared to other available investments. And that’s the trick – it’s great to save money but it’s even better if you can also see ongoing reward results to help encourage you to keep up the momentum. In my case I was regularly saving interest but also I was building up equity in our house – a double bonus.
Being able to see how much interest you’re saving is huge. I wonder how much interest I paid on credit card debt in my former life… actually, nevermind. I think knowing would hurt, haha.
SMART goals are the best kinds. Nice job on your weight loss, that’s incredible. My accomplishment so far this year is I’ve managed to grow my net worth by over 30%. But that’s partly because it wasn’t very large to begin with. I did it by sticking to a budget and tracking my progress in a spreadsheet :0) I find the easiest way to not overspend is to stay home as much as possible so I’m not tempted to buy stuff.
30%!? That’s fantastic! And I wholeheartedly agree about how staying at home as much as possible helps you save money, but it’s also important to find free/cheap fun too. Don’t want to get cabin fever!
Congratulations on your progress, it’s incredible what you’ve been able to do!
I was happy to be able to put together an emergency fund faster than I expected.
For me, the way to stick with my goals is the spreadsheet tracking. I take a lot of pleasure in planning ahead in the details (including meal planning, as my weakness is restaurants and general laziness), which allows me to watch my money grow. All of my debt originated in boredom and malaise; once I give myself concrete things to do then I seem to do all right.
Hopefully this is somewhat helpful. You’ve done so well for so long; keep your eye on the proverbial prize!
Thank you, Michelle! And may I say I’m quite jealous of your emergency fund. I think saving at least $5K in one will be my first goal, once my debt is paid off.
Eek, I need some SMART goals myself. About time I sit down and the do it! I like your debt-free date – mostly because it’s my birthday
I like to think my birthday brings joy to all, haha.
Ooo, now I really hope I’m debt-free by that day! hehe
First things first, congratulations on paying off $20,000 worth of debt!
That is no small feat, it’s definitely something to be proud of, and I have no doubts you’ll hit your new goal!
I’m a very visual person, so I didn’t find updating the debt tracking bars on my first blog really felt like progress to me. I find building an interactive debt thermometer that goes on my wall to be really useful. Every time you throw a little bit of money at the debt, update the thermometer. I’m not sure how frequently you get paid now, but if you get to the end of your pay cycle and you still have money in your account, sweep it right onto your debt. You’d be surprised how quickly that adds up! Best of luck Cait!
Thank you, Cassie! I think I’ll feel more proud once it’s actually gone… but hitting the $20K mark was kinda fun. One of my readers (who has since become my favourite pen pal) drew a house that she and her husband coloured, as they saved for their first down payment. I loved when she sent me emails with pictures of it, so I knew how far she’d come. I imagine I’ll do something similar, once my debt is gone.
I’m in the same boat — right around $7500 to go! Initially I wanted to have it all done by next summer, but now I’m thinking about buying a home, and I have to let some of the rapid-fire payments loosen up a bit. It gives me a lot of guilty feelings since I was so gung-ho!
Yay, you! But why do you feel guilty? I would never give someone advice re: finances but listen to whatever it is you’re feeling. Maybe draw out a repayment plan and a savings plan, so you have a new date for when you think you’ll be debt-free. I find that if I have a goal then there’s no guilt. Excited for you, either way!
Those are some awesome goals accomplished which just goes to show what you can really do if you put your mind to it! Cheers!
Thanks, Jessica!
Good luck with your new goals. The last couple of weeks have kind of gotten away from me and I need to regroup and get back on track again. Thanks for the reminder!
You’re welcome! Good luck!
You’ve had a really great year! I feel like we are mostly at the very beginning of being able to make serious progress. We need to sit down soon and re-evaluate what our budget will look like for the next year.
Is it wrong that that makes me a little bit excited for you? Enjoy making your new budget! Set some SMART goals and make ‘em happen.
You have made incredible progress on several fronts and I commend you for it. As someone who is less than 2 months away from paying off over $55K of debt I can relate with how you’re already envisioning the finish line and what can happen beyond it.
I plan to redirect the amount I’ve been plowing at debt towards increased savings for E-Fund and then towards a house fund.
You not only need to plan the next 7.5 months until your debt freedom date but what will happen with the money you’ve been allocating towards the debt. You need to think of how best this money will work for you.
You’re on the right track with planning ahead your monthly budget and planning ahead for potential extra income i.e. Tax refund.
$55K? You’re my hero, K.K.! How long has that taken you, if you don’t mind my asking? My savings goals afterwards are the same as yours: at least $5K (if not more) in an emergency fund and then it’s time to save for a down payment. I’ll probably put a little more into my RRSPs, as well.
So excited for your debt freedom.
Thank you, B!
Congrats! I think you’ve definitely got the right idea with planning and tracking. If you keep this up, you’ll be debt free before you know it. You’re such an inspiration! Next month I’m going to be able to say I’ve paid of half ($13,360) of my student loans in 12 months, hopefully the 12 months that follow will be just as spectacular.
I have no doubt that the next 12 months will be just as good for you, Jordann! Thanks for your comment
Wow, you’re doing great! Our secret to staying on track when we set a goal is to plaster our bathroom mirror with reminders, and encouragement. You can post your budget, quotes, pictures, or dates.
It’s easy to be mediocre, but much more rewarding to be exceptional
What a great quote! Thanks, Mandy. Now, I have to ask… why does everyone put their goal reminders in their bathrooms? You are one of at least ten people who have said that to me before!
Cait – this is amazing! I really admire your dedication to your goals. And the fact that you moved up your debt-free date by almost a year is incredible! GO YOU!
Congratulations Cait,
I’ve been following you for a while now and you are a woman who goes after what she wants. You have the drive to be and go and do whatever you want in this world and I’m betting you will. Keep up the good work, great job on the 20lbs yay! If you need a budget we just finished ours and I can send it to you if you want to use it. It’s an excel spreadsheet.. if that helps…if not keep at it. I look forward to seeing your updates with all the +++++!! Cheers Mate. Mr.CBB