I want to do this!

Become Financially Independent

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  • karolinaklosinska
    karolinaklosinska Done 0 cheers 2017-06-07 12:26:34

    I've done this!


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  • aenea
    aenea Doing 1 cheers 2017-05-23 01:30:21

    Savings for long term goals, travel, and large expenses

    some of our wedding funds are being set aside in a savings account to help with our home remodel. It's small, about 5% of what we'll ultimately be needing, but it's a start.

    More urgently we are also needing to save for the potential maternity gap in my wages, which for a three month period will be considerable. I have not worked long enough to have paid leave available for the duration.

    Visitation travel expenses amount to about $3k annually, and cannot be overlooked either.

    Travel beyond that, to visit my family who all live 5000 miles away, is also a consideration.

    On a positive note, I've convinced A to start a savings fund to visit Disneyworld. So she does extra chores for a small allowance that she is putting away for her goal. I'm hoping she learns something about money management, perseverance, and being goal oriented in the process.

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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-23 02:39:56

      updates:

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      • aenea
        aenea Doing 0 cheers 2017-06-06 23:00:00

        Two weeks in and A is already giving up. She hates chores more than she loves Disneyworld. Which makes me sad. Im at a loss as to how to spark motivation in her on many fronts. All suggestions welcome. Next will be no electronics until chores are done. Which she will not like at all.

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    • joycultivation
      joycultivation 0 cheers 2017-06-12 20:38:05

      @aenea i LOVE that you are teaching about money management at a young age. i wish my parents had taught me more. most of what i learned was from watching my parents make mistakes.

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  • aenea
    aenea Doing 4 cheers 2017-05-23 01:09:50

    Build an emergency account

    I get so focused on paying off my personal debt that I often overlook the importance of building and maintaining my emergency account. Currently I have a paycheck and a half worth of savings but I'd like to build that to:

    A. 1 month worth of savings by end of 2017
    B. 2 months worth of savings by end of 2018
    and ultimately
    C. 3 months worth of savings by 2020

    All while also balancing this savings with saving for longer term purchases (like home remodel and travels) and saving for retirement.

    It's so discouraging when the amount I have available to contribute is so small and then has to be split four ways to cover all my needs. rowning;

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  • aenea
    aenea Doing 1 cheers 2017-05-23 01:00:39

    Student loans

    I'm on an income based repayment plan at the moment but it's not doing me any favors. When I have my personal debt under control I'm hoping to tackle this next.

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  • aenea
    aenea Doing 5 cheers 2017-05-16 05:25:44

    Monitoring spending closer with some financial apps.

    I've been using Mint and Prism and now I'm trying Wallet. I'm going to try to be more consistent about entering data with Wallet.

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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-23 02:40:34

      updates:

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      • aenea
        aenea Doing 0 cheers 2017-05-23 03:59:18

        Wallet is a very nice app. I'm not ready to subscribe though, so the search continues.

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        • joycultivation
          joycultivation 1 cheers 2017-06-12 20:39:28

          @aenea i LOVE wallet. it has helped me TREMENDOUSLY. i have the free version so i pay 0 and it meets all my needs. i did some creative workarounds with the functionality

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          • aenea
            aenea Doing 0 cheers 2017-06-12 21:41:42

            @joycultivation hmm. After I downloaded I was told I had 14 days to try it for free but would then need to subscribe to keep my accounts active.

            Looked interesting though. I'm glad you were able to find a method that worked for you.

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            • joycultivation
              joycultivation 0 cheers 2017-06-12 22:24:39

              @aenea you probably had 14 days to try out the free upgrade to a paid account. the basic account is always free. i have been using this app for over a year now. i have never paid a penny and i have achieved majorly positive results. i went from a substantial amount of debt to routinely saving 38% of my income in the course of a year.

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      • aenea
        aenea Doing 0 cheers 2017-05-28 20:39:18

        I've had Goodbudget on my phone for awhile but had never put much time into it. So I think I'll try that next.

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      • aenea
        aenea Doing 0 cheers 2017-06-06 23:04:22

        Been using Goodbudget for June so far and it's definitely useful though more complicated than I'd like. Perhaps it'll get easier with time.

        Also, budgeting is extremely depressing.

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      • aenea
        aenea Doing 0 cheers 2017-06-10 07:22:56

        Today was not good as far as spending goes. We went to a movie, bought concessions, had dinner out, bought ice cream, and bought some books. Fridays are my weakness I think.

        We did bike to a free concert at the botanical garden yesterday though, so that was good.

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  • aenea
    aenea Doing 1 cheers 2017-05-12 22:51:32

    Pay off credit card debt

    We received a generous cash gift from my parents for the wedding, and my parents insist it should go towards our honeymoon. However, I'm not sure they realize the weight of our debt, and I'm leaning towards applying it to pay off one of my cards.

    The second dilemma is which card: the one with the highest balance or the one I can wipe off completely and possibly free up for a no interest balance transfer (something which I'd previously sworn off). Leaning towards option two, but I sure hate looking at that balance on card one. I just have to keep in mind that if I remain persistent, it will disappear too, eventually (after mountains of interest accrue...).

    Decisions decisions.

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  • aenea
    aenea Doing 2 cheers 2017-05-10 20:57:13
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    • AeneasSubgoals
      AeneasSubgoals 0 cheers 2017-05-11 23:36:20
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      • aenea
        aenea Doing 0 cheers 2017-05-11 23:37:48
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      • aenea
        aenea Doing 0 cheers 2017-05-11 23:38:48
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      • aenea
        aenea Doing 0 cheers 2017-05-11 23:39:52
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  • aenea
    aenea Doing 2 cheers 2017-05-03 21:44:59

    So @DanoDano recommends making multiple payments per month when paying down credit card debt. I know this to be an effective approach and have used it on my mortgage, auto, and student loans in the past, but hadn't considered it for my credit card debt. I'll have to look at my numbers and see what I can shift around.

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    • DanoDano
      DanoDano 1 cheers 2017-05-04 01:29:48

      @aenea thanks for noticing that. There's a triple benefit for paying weekly.
      The first benefit I bet you know about - when you pay early, it reduces your principal earlier which in turn reduces the amount of interest you pay.
      The second benefit is that each weekly payment is smaller so it doesn't feel like as big a burden. (A psychological trick that works for most of us)
      A third benefit is that it helps to focus attention on lowering the debt, instead of using any "extra" cash for other things.

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    • ExplorerSoul
      ExplorerSoul 1 cheers 2017-05-30 15:31:43

      @aenea This reminds me that I used to make more than one payment per month, if I'm not mistaken. I feel like I still do in some way, but it's mainly to pay off new charges. Maybe I should start dividing my payment in two. Have to think about this.

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  • aenea
    aenea Doing 5 cheers 2017-04-26 19:25:07

    I paid my bills on Monday night. I am on target to pay off all but one of my credit cards by the end of August.

    Paying off while not using is easy, but paying off a revolving balance while still using a card for monthly transactions is rather challenging.

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