Author note: I began writing this post on December 31, 2022, and just never got around to publishing it because I was a bit depressed and checked out at the time. For that reason, it is a bit melancholy and doesn’t reflect where I am now (employed full-time, going to the gym, happier, and generally just in a better headspace). However, it wouldn’t feel “right” to edit away the feelings I had as I was writing it. Just know that this post reflects where I was then and not where I am now at the time of its publishing in April 2023.

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On the last day of 2021, I wrote, “My last post of 2021! Despite the continued mess that 2021 has been for so many people across the world, 2021, particularly the second half, was actually a pretty good great year in AfroPennyland and I’m kinda sad to see it end. Kinda.” My feelings could not be more different this year. 2022 was kind of a crummy year for me, even if I did initially make some good financial progress, and no part of me was sad to see it end. Don’t believe me? On my way to watch a college football game at The Trucker’s house, on New Year’s Eve, I got into an accident, and I am now without a car until a repair estimate is done and I get a rental. However, other than bruised knees and a bit of chest pain from where the airbags deployed, I’m okay. My ego took most of the beating. I guess I should be grateful for that.

I’m usually so excited to do this post but honestly, at the moment, I am forcing myself to do it for past and future AfroPenny, because they would want me to do it. So, before I can begin 2023 in earnest, I have to close the financial blog door on 2022. To the numbers…

Student Loan Balances – January 1, 2022

Student Loan Balances – January 1, 2023

Net Student Loan Debt Reduction in 2022: $21,497.81

Not great and definitely less than last year. However, all of the debt repayment progress was made during the first eight months of the year before I left Organization C (which I still don’t regret…although, I miss the income), so I hustled harder than the numbers belie.

Net Debt Reduction by Month

January 2022 – $2,744.09
February 2022 – $374.33
March 2022 – $1,858.92
April 2022 – $7,297.88
May 2022 – $1,762.06
June 2022 – $2,912.76
July 2022 – $4,674.22
August 2022 – $2,800.55
September 2022 – $0.82
October 2022 – $7.25
November 2022 – No post/No payment – Balance increased due to interest.
December 2022 – No post/No payment – Balance increased due to interest.

Finally, how did I do with my planned REVISED: 2022 Financial Goals?

1) Earn the $2,000.00 match from Organization C. – Fail – I didn’t stay long enough with Organization C to earn this pitiful match. I did, however, contribute the maximum match amount up to my departure.

2) Save $1,000.00 as a non-emergency fund sinking fund. – Fail – I achieved this goal by midyear but then turned around and spent it during my subsequent unemployment from September through December.

3) Make it below $60,000.00 in student loan debt. – Fail – This one hurt. I was so very close. If I had remained employed with Organization C, even without additional hustling or a second income, I would have easily achieved this goal. Eh…there is next year.

Whew, what a year. I don’t know that there is really anything more to be said…as always, I continue to be unendingly grateful for the Pennyfolk and anyone else who wanders by my blog. See you in 2023.

My last post of 2021! Despite the continued mess that 2021 has been for so many people across the world, 2021, particularly the second half, was actually a pretty good great year in AfroPennyland and I’m kinda sad to see it end. Kinda.

Once again, as I compiled this year-end review, I had to take more than a moment to acknowledge how incredibly fortunate I have been. While this fortune was spread across different areas of my life, of greatest interest to the Pennyfolk is my financial outlook. So, how did I do in 2021?

Student Loan Balances – January 1, 2021

Student Loan Balances – December 31, 2021

Net Student Loan Debt Reduction in 2021: $22,751.51

Not bad at all! While I know the payments didn’t roll out evenly over the year (see below), that is still an average monthly payment of $1,895.96. My full-time net income increased a bit this year to $40,827.68 (gross income: $54,898.04) thanks to a very modest bonus and additional duties I picked up at University B.

However, the financial success of the second half of this year can largely be attributed to gig work (even the part-time golf job started out as a gig). In the last six months of 2021, I made $4,667.22 (gross) in additional income from gig work and part-time work.

Net Debt Reduction by Month

January – $1,411.49 – In January, I benefited from the continued payment and interest rate forbearance on federal student loans and began targeting PSL3 in earnest.
February – $1,605.88 – My apartment flooded in late January and after realizing that my landlord wasn’t going to make the appropriate repairs, February saw me move in with my parents.
March – $2,527.17 – As a result of my very generous parents not charging me rent, in March I was able to make the largest student loan debt repayment I had ever made up to that point. I also benefited from a small income tax refund.
April – $2,036.34 – April was a repeat of March less the tax refund.
May – $2,057.07 – While my May payment was pretty standard at this point, my May was anything but…
June – $357.29 – As I had spent May gallivanting up and down the east coast with my best friend, the bills eventually came due and my June debt payments were nothing more than the minimums. June was also a big month for me as it saw me moving out of my parents’ home and into my own space, kinda.
July – $1,690.82 – July was a big month. While my debt repayment took a predictable dip when I began paying rent again, I was finally able to say goodbye, forever, to six-figure student loan debt. While this milestone resulted from months of hard work, making it over the threshold in July resulted from my foray into gig work.
August – $1,921.49 – While work woes abound in August, there was still much to celebrate as I paid off PSL3.
September – $2,581.30 – While work remained unsettled, debt payment this month was significantly aided by a very modest bonus.
October – $2,434.15 – In October, I decided that I really wanted to pay off PSL 4 and make it under $90,000.00 in student loan debt this year. I saw gig work as the only way to reach those goals and worked my tush off. There were definitely days where I was tired and regretted picking-up shifts. October also saw me refinance all of my remaining student loans, except PSL4, to a very good interest rate with a great lender.
November – $1,375.92 – While this was a pretty average to low-average month for debt repayment, over the Thanksgiving holiday I found out that my father regularly checked on the balances of my loans serviced by AES. Being able to show him how much progress I had made was a proud moment for both of us.
December – $2,744.09 – December was a huge month! December is my birth month and generally a time of year when I do a lot of reflection on the past year and the year to come. That was not really possible this year as I was too busy saying goodbye, forever, to $90,000.00+ student loan debt, celebrating paying off PSL4, and interviewing on my birthday for my new job! There is so much to be thankful for in December.

Finally, how did I do with my planned 2021 financial goals?
(Note: On my last blogiversary in July, I decided that the beginning of the year would reflect financial goals and my blogiversary would reflect blogging goals, so I am not reviewing goals 5 and 6 here.)

1) Reduce my overall student loan balances below $100,000.00 – Pass! – I can’t even begin to explain what a significant milestone this was in my journey.

2) Reduce my overall student loan balances below $90,000.00 – Pass! – I think this demonstrated the benefit of setting “stretch” goals. Getting below this amount significantly changed how I feel about myself and my relationship with my student loan debt and finances.

3) Payoff Private Student Loan 3 (PSL3) (-$10,666.59 as of 1/1/2021) – Pass!

4) Payoff Private Student Loan 4 (PSL4) (-$9,997.13 as of 1/1/2021) – Pass!

7) Increase part-time/side monthly income to $1000.00 – Partial Pass – I’m giving myself a partial pass on this one. While I didn’t generate an additional $1,000.00 in gross income every month, I struck a balance between earning more, not being entirely exhausted, having a social life, and achieving my financial goals.

8) Establish sinking funds – Fail – I set myself up for failure with the goal by not being more specific. Not only does specificity in goal setting help with assessment, but it also helps with motivation. I think a modified version of this goal will return for 2022.

9) Cashflow final coursework and application process for medical school – Altered – I struggled with this for most of the year but I finally addressed my decision in another post.

Whew, what a year. I don’t know that there is really anything more to be said…

HOWEVER, before signing off, I want to THANK everyone who read(s) my blog, and especially those who take time to comment (C, Ellen, Avery, Blissful, Paula, K, Hope, DDSW, and anonymous folks). While I would like to think I would continue writing even if no one were reading, I am incredibly grateful that isn’t my circumstances and that such generous folks have decided to join me on my journey. Thank you!

I hope the end of 2021 finds you and your loved ones safe and as well as can be, and that the start of 2022 finds you the same or better.

My last post of 2020! I’m so relieved. 2020 has been…a lot.

As I compiled this year-end review, I had to take more than a moment to acknowledge how fortunate I have been as, unlike millions of American families, I remained employed throughout the year and did not struggle with housing, food, health care, or education insecurity.

So, given that I was fortunate to remain mostly healthy and employed throughout 2020, how much financial headway did I make, and did I accomplish any of the financial goals I created at the outset?

Student Loan Balances – January 1, 2020

Student Loan Balances – December 31, 2020

Net Student Loan Debt Reduction in 2020: $12,885.84

Not…amazing. Especially when you consider that I benefited significantly from the current interest forbearance on federal student loans, which means the bulk of my loans didn’t accrue interest for nine (9) months of 2020. Ugh.

It’s also…not terrible. That still means, on average, I had a net reduction of more than $1000.00 per month. ALSO, I did set and achieve a goal of establishing a $5,000.00 emergency fund which covers three (3) months of fixed expenses.

My net income (gross minus taxes, deductions, etc.) is approximately $37,000.00. Which means I put almost more* than 50% of my after tax income ($17,885.84) towards debt and savings. However, this didn’t roll out over the year evenly, and some months were much better than others.

*I forgot this is just the net difference in student loan debt. I put significantly more of my after tax income towards debt, some of it just got ate up in interest.

Net Debt Reduction by Month

January – $424.54 – This smaller-than-it-should-be reduction resulted from unbudgeted spending in December 2019.
February – $605.68 – This reduction was still smaller than it should have been but also resulted from an accounting error when I switched from using the principle balance to the outstanding balance (principle balance plus accrued interest) which I wouldn’t figure out until the following month.
March – $1,465.59 – I was a happy idiot once I figured out the error. March was a strong month for debt reduction as my regular payment was also buttressed by state and federal income tax returns.
April – $3,300.51 – April resulted in the highest debt reduction month to date. In addition to maxing out the portion of my debt payment that comes from my monthly paycheck, April also included the first stimulus payment ($1,200.00) and a mileage reimbursement from work. I also began benefiting from the interest rate forbearance on federal student loans.
May – $1,599.34 – Feeling the pressure to payoff Private Student Loan 1 before the balance transfer ended, I continued to max out my the amount I could pull from my monthly paycheck each month.
June – $1,172.50
July – $1,296.20
August – $2,460.69 – I paid off Private Student Loan 1 (PSL1) and the balance transfer before it ended, resulting in the second highest debate reduction month to date.
September – $477.23 – Once I paid off PSL1, I switched gears and began to focus on beefing up my emergency fund to cover three (3) months of fixed expenses. This amount reflects the reduction made based on minimum debt payments.
October – $475.92
November – $484.13
December – ~$1,089.25 – December isn’t quite over but the month is close enough to its end that I can estimate with pretty good accuracy (maybe a penny or two off on the accrued interest estimate), where I will end up for the month. This month saw me finish funding my $5,000.00 emergency fund and return to aggressive debt repayment. I also quit my part time job, and pledged to aggressively pursue more lucrative consulting work in 2021.

In some ways, 2020 was an awesome year for debt reduction for me, even outside of actual dollars put towards it. Having to payoff PSL1 before the balance transfer ended, to avoid interest and embarrassment, forced me to really buckle down. I now know that putting at least $1,000.00 a month towards debt reduction isn’t that much of a stretch, if there are no significant unexpected expenses, and really just requires I adhere to my budget. This was kind of a game changer in terms of how I think about money.

Finally, how did I do with my planned 2020 financial goals?

1) Pay off Private Student Loan 1 – Pass! This loan was paid off as of August 3, 2020.

2) Pay off  Private Student Loan 3 2 – Altered. The onset of the COVID-19 pandemic, and the subsequent diminished capacity to earn additional income over the summer, meant this goal became a stretch. Then I decided to increase my emergency fund to $5000.00. As shared above, I reached my emergency fund savings goal on December 1, 2020 but Private Student Loan 2 remains.

3) Start a small business AND generate an additional $500.00/month in income. – Fail…sorta. So I think my intention here in writing this was for this to be one goal. Ultimately, it turned into two smaller goals… I am not quite as far along in terms of my business plans as I would like, but this month, I received a check for consulting work I secured in August and completed in November. While I quit my part-time job earlier this month, prior to departing, an increase in responsibilities at University B and additional hustling meant I consistently netted, on average, an additional $500.00 each month.

2020 Blogging Goal: One (1) student loan balance post a month AND one update post a month. Fail. In February (I know!) and June, I only posted a student loan balance update on the first of the month. However, since the transition to better blog digs, I have been posting much more frequently; and, I imagine this will continue to be the case now that I have reached my emergency fund goal and transitioned back to aggressive debt repayment.

So that’s it. That was my 2020 from a debt repayment perspective. My first post of 2021 will go over my financial goals for the upcoming year.

Before signing off, I want to THANK everyone who read(s) my blog, and especially those who take time to occasionally comment (C, Ellen, Avery, Isabella, Mike, DDSW, Peter, and anonymous folks). While I generally don’t care what strangers think about my financial choices, what you all might think about my progress is definitely a behavior check. Knowing that I will have to report and account for my significant (or not so significant) debt payments and financial choices has been an accountability tool I didn’t know I needed. Thank you!

I hope the end of 2020, and the start of the new year, finds you and your loved ones safe, or getting there, and as well as can be at the moment.

May 1st officially marked the end of my first financial quarter trimester for 2020. And while 2020 has been pretty terrible overall, financially, for me, it could have been a lot worse, even if it could have been better. What follows is my 2020 Q1 first trimester financial review.

((Note: I know this isn’t true for billions of other people around the world. This blog functions as a personal diary about my personal finance and is not meant to represent the perspective or experiences of anyone other than myself. I don’t seek to offer advice or sell you anything (not that there is anything wrong with folks who do.) As I have said before, my current financial situation produces a lot of shame and anxiety for me and this blog helps me manage those feelings.))

Debt Repayment

1/1/2020 Debt Total: -$127,688.14

5/1/2020 Debt Total: -$121,891.82

Difference: $5,796.32 (Note: This is just the difference in my balances and not the total amount paid.)

Almost six thousand dollars over four months feels like a success, even more so than looking at the declining balance each month. While much of this success was due to uncommon/less predictable events, such as the COVID-19 stimulus check, tax refund, etc., it would have been even more substantial had I been able to make the debt payments on January 1st and February 1st that I am making now thanks too a stricter adherence to my budget. On January 1st, I was paying off the extravagances of December and on February 1st, I was paying off the unruliness of January, but I got it together in February which allowed me to make a $1000.00 extra student loan payment on March 1st. This pattern held for March for a $900.00 extra student loan payment on April 1st. 

Savings

Thus far, it has been a serious fail. Between my “emergency fund” and my “life fund” I have a little over $1000.00 in savings (I have more in my 401K but I don’t really count that as it isn’t cash on hand). This is pitiful and I really need to beef up my savings to at least $3000.00 which would cover two months of expenses. 

Challenges/Disappointments

The biggest challenges and disappointments for the first quarter were the early effects of the COVID-19 pandemic that will be more fully realized as lost opportunities in Q2. For example, I participate in an extra curricular activity for which summer and day camps are common during the summer. I had been offered a teaching role that would have resulted in me bringing in an additional $4,500.00 over a two week camp in June (this would have been addition to my monthly salary from my main employer). Unfortunately, the pandemic meant that this camp was cancelled. While this was undoubtedly the right move, I’m not gonna lie, in my mind I had already envisioned and dreamed about using that check to make a large debt payment.

I have applied to other jobs for side income but I believe I may be getting screened out due to seeming overqualified. Which kinda stinks because I love retail/customer service work but…eh. Hopefully it means someone else who needs the job a bit more than I do is getting it.

Progress on 2020 Financial Goals

On April 18th, I revised my 2020 Financial Goals to account for the pandemic and decreased opportunities for earning income; and, the loss of expected bonuses and merit based increases. My new financial adjusted financial goals for 2020 are:

1) Pay off Private Student Loan 1 ($8,600.00 remaining as of 1/1/2020) by the end of the promotional period. – As of 5/1/2020 there was $3,700.00 remaining on my PSL1 balance. This is  a considerable improvement from the 1/1/2020 balance of $8,600.00 and the balance difference represents all of the additional loan payments made during Q1.

2) Pay off  Private Student Loan 3 – This goal was removed/adjusted based on expected diminished earnings during the pandemic.

2) Start a small business AND generate an additional $500.00/month in income. – This will look difference based on the pandemic but is still something I hope to achieve by  December 2020.

3) Save $ to purchase a vehicle outright at the end of my car lease term in December. – This won’t happen until I payoff PSL 1. However, despite my ah-ha moment, I am still waffling here a bit…I will write a post on my current car lease and the cost associated with all three lease-end options in a future post.

2020 Blogging Goal: One (1) student loan balance post a month AND one update post a month. – Success so far! (3) ADDED – Transition from Blogger to another blogging platform for a more aesthetically pleasing blog. – I have added this goal for myself and hope to have achieved it before my official blogging anniversary on July 4th.

I will admit that these goals are exceptionally modest, however, given the uncertainty of the current moment, they feel achievable given the things within my control.

Q2 Second Trimester Financial Predictions

In Q2 the second trimester, I expect to achieve my first 2020 financial goal and begin to make progress towards the others. I will share one thing…there might, might be a move to another university in third trimester. But it is still in the very early stages so more on that when there is more on that.

2019 was…bumpy. I am genuinely hoping to make significantly more progress on my debt in 2020 but before I can get to my goals, I need to do a bit of reflection.

2019 Goals Financial Review

So…it’s difficult to review your goals when you didn’t set any. Seriously, I started this blog on July 4, 2019 and the closest I came for setting a goal for the year was a goal I set to have paid off the Citibank portion of my balance transfer and if you looked at my January debt update, you realized that didn’t happen. *puts head down* So…instead of reviewing concrete goals (something I will set for myself in 2020), I am going to look at the wins and losses for the year.

Wins

Reduced my debt by $16,413.25. – On January 1, 2019 my debt balance total was $144, 101.39 (this was prior to the start of this blog) and on January 1, 2020 my debt balance is $127,688.14. That means in 2019 I reduced my debt by $16,413.25. It could have been a lot more. It should have been a lot more. But it was something. Considering I make just a bit under $50,000.00 and this is just the amount my debt was reduced and not all of the payments made (that number is over $20K but it would depress me to calculate it so I’m not going to do it), I’m going to say not terrible. I’m grateful it is something.

Declining Costs of Living – I have made my very cheap apartment very habitable on very little money and believe I will be able to stay here for the foreseeable future. The cost of living working at University A was significantly cheaper than it is at University B because my former position included housing. However, despite being a much bigger city (you know, a proper city) the cost of living in University B city is cheaper and my quality of life is much better.

Improved Health – I know I said I was going to look at my financial wins and losses, but I think there is a cost associated with having poor health. My physical and mental health have improved significantly since I have moved from University A to University B and for that I am incredibly grateful.

Losses

Private Student Loan 1 – This loan is still festering and the balance sits at $8,600.00 as of January 1st. If you read my balance transfer post then you know my original goal was to have a portion of this paid off by December 2019. That didn’t happen for reasons I will discuss in a moment, but I still plan to have it paid off before the end of the balance transfer.

Bumps – My student loan payoff in 2019 wasn’t quite as aggressive as I would have liked for a number of reasons including a change in jobs and a cross country move. Additionally, in the months of November and December I was in two separate auto accidents. One was my fault and I had to pay a ticket (following too closely), my insurance deductible, the taxes on a rental car while mine was in the shop, etc. The second one was not my fault and was a hit-and-run WHILE I was in the rental car. Unfortunately, I had declined the rental car insurance at the rental counter like and idiot. Ugh, it could have turned out a lot worse than it did.

Unplanned Spending – A friend came to visit me for ten (10) days and we road tripped quite a bit. While I was happy to see her and had a wonderful time, the trip was very last minute (she needed to not be where she was) and not something for which I had planned and set aside money.

While my December/Christmas spending was a bit higher than I would have liked (the unexpected visitor came in December), due to a bit of frugality prior to her arrival and a transportation reimbursement from University B for mileage I have put on my car during the semester, I was able to cash flow almost everything and as of today, January 1st, all of my December/Christmas spending has been paid off. The only sign of my rough end of the year was that my Emergency Fund is still missing my auto insurance deductible, which I hope to replace out of my tax refund or bonus in early February.