Future Outlook: Some Random Thoughts
Posted on November 29, 2006 by Him and tagged debt, future
A few months ago, Her posted that we'd be free of credit card debt in 24 months. That was almost five months ago, so that would mean we have 19 months to go to pay off our credit card debt (I am a math GENIUS). Since then, we've quietly decided to put more money into credit card debt, upping our contribution to our credit cards from $500 extra a month to $700 extra a month, for a total of about $900 going towards credit card debt per month. After the holidays, we probably will allocate a little more. That will accelerate our credit card debt reduction by at least 7 months or so, leaving us credit card debt free in December 2007 at the latest.
So what are we going to do with another $900 a month in 2008? Here are some random thoughts.
- Pay more towards the student loans. Obviously.
- Max out Roth IRAs for both of us. The 2008 maximum contribution is $5,000. That would mean $833 per month would be diverted to those accounts.
- Save for a house.
- Buy a pony.
It is quite liberating to think of what could be done with extra cash. I guess this is a taste of that so-called "financial freedom." That's good stuff.
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Sarah | Nov 30, 2006
Ooohhh... I always wanted a pony when I was growing up, but I could never convince my mom that they didn't eat much and could stay in our 1 acre plot.
Do you both get bonuses at work? What about saving those for your Roth accounts, and then diverting some of your goal payments to your cc's and student loans? That way you're making monthly payments and helping reduce interest paid.
savvy | Nov 29, 2006
I vote pony. You can never have too many ponies, and I hear they are good investments.
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