Private Loan 1: -$9,744.88

I will be the first to admit that I am not entirely certain as to what I will end up “doing” with my life/career. I know that service to others and my community will be a significant focus but the details…the details are unclear at the moment. However, whatever I end up doing, I am certain that my debt will be an obstacle…or many slightly smaller obstacles that make up one large obstacle. In an effort to remain focused and motivated, I will only focus on one obstacle at a time. Thus, with no further ado…

On July 1, 2019, the day I created this blog, Private Loan 1 looked like this:

Private Loan 1

-$10,231.32

$112.21

9.865%

Today, I received my final paycheck and vacation buyout payment from my previous employer; and, after my initial moving expenses were paid (gas, hotels, food, rental application, etc.) AND I paid all of my bills for July, I had about $2000.00 left over. My first inclination was to pitch all of it towards my debt. And while that would have resulted in a great deal of immediate satisfaction, it would not have been the wisest financial choice for a couple of reasons…

1) I don’t have “sinking funds” and still need to pay my apartment security deposit, change my car registration, license, and insurance.
2) The new university works on a monthly payroll cycle, and as I will not have been here for a full month when I receive my first paycheck, so I will need to buffer my August budget.
3) I have only a vague idea of what my check will look like because I moved from a state with a low state income tax and no city tax to a state with a higher state income taxes and a city tax. Paycheck City has helped me do some estimating, but for the moment it is just that. An estimate.

Thus, today, I made a smaller payment of $500.00, reducing Private Loan 1 to -$9,744.88. I should also note that there was also a slight interest rate reduction from 9.865% to 9.400% this month. No matter, this loan still has the highest interest rate of all of my loans by at least a 1.00%, so it remains my immediate obstacle to financial freedom.While I don’t know exactly how I will do it, I plan to be rid of Private Loan 1 this year. Which brings me to…

2019 Financial Goals

While it seems quite late in the year to create a list of financial goals for 2019, July 1st is the start of a new fiscal year, so I am seizing it as an opportunity for a new start. As there are only 6 months left in the year, and my financial forecast is somewhat in flux, my financial goals are rather modest. However, if I can achieve them, it will put me in an immeasurably better place both financially and emotionally.

Goal 1: Pay off the personal student loan of -$1,563.08 (Balance as of 7/10/2019)

• Note: This will be achieved through the remaining minimum payments for this loan; this loan should be paid in full on December 1, 2019. Not only will this free up $312.63 each month to go towards more expensive debt, it will relieve me of an emotional debt to my friend.

Goal 2: Pay off Private Loan 1: -$9,744.8 (Balance as of 7/10/2019)

•  Note: I am going to have to seriously hustle to achieve this. Right now, I am projecting that if I am really good with my budget, I will be able to put an extra $500.00 each month towards my debt from my regular paycheck. (More on my hustle later.) $500.00 over the remaining months in 2019 is only $2500.00, so I have no idea how I’m going to earn the other $7,200.00.

Goal 3: Reduce overall debt to less than $120,000.00. 

• Note: To have even a sliver of a chance at achieving this, I will have to achieve Goal 2. If I can achieve Goal 2, and with continued minimum payments on the rest of my debt, I would reduce my overall debt to less than $120,000.00. This would be a significant milestone for me in my debt repayment journey and is something I desperately want. Somehow, there is less shame for me in $119,999.00 than +$130,000.00. I know those two numbers are only $10,000.00 apart, but in shame and anxiety, it represents so much more.