Debt Dumpers 2020

Finally ready to share my 2020 goals since I found out today that I will still be employed come January 1!! I feel like everything in my life has been on hold waiting for the phone call I got today to let me know I still have a job, so now I can finally get down to business...

1. Buy DH a car... immediately. His car is burning oil at an alarming rate so it needs to go ASAP. Plan is to pay cash for this new car. It’ll serious deplete our savings, but...
2. Beef savings back up. DH will get healthy stock payout and annual bonuses in the spring, so I’ll use those to replenish our savings after buying the car.
3. Pay DH’s student loan off. We have about $3900 left on it right now. We prefer to get bigger tax refunds so I’m hoping we can get a good amount from that to put towards the loan. If there’s anything left, we’ll probably just pull it from savings.
4. Get our house painted. Our house is ugly, for real, and I’m tired of looking at it. I got a quote for $2300 for painting our house and two sheds and am seriously considering doing it this year.
5. Up my retirement contributions. My 403(b) (government employee here) is maxed, but I also have a 457 plan that I’m only contributing $20 per paycheck too. I’d also like to up that to help get my student loan payment down further.
 
I am still putting some thought into my goals, but here is what I have so far:
  1. Reduce restaurant spending - This is a BIG goal for me this year. I spend a LOT dining out. I just enjoy it. I will never go to once a month like I know some people do because it's a big social thing for me, but I do need to cut back. I'm starting small. I want to cut $100 a month from my average spend AND buy coffee out only once a week (that's a big deal for me). From there, I'll try to cut more.
  2. Increase emergency fund by $3000 - 2019's goal was to increase by $2000. I JUST barely hit it. Now that credit cards are all paid off, this theoretically should not be a problem. I'll reassess and see where I am at a couple months in. Maybe I'll increase this amount.
  3. $100 per month toward a Christmas fund - Same as last year.
  4. $110 a month + credit card rewards toward Vacation fund - Same as last year
What I'm really still debating is my 401k. I currently have it set to increase by 1% in April. I might cancel that. I am already over my employer match and I still have a lot of student loans and other goals/things I need to save toward. I might try to tackle those things first. I'm undecided. I'm also undecided on if I want to up my student loan payments. I'm on an income based repayment plan that should go up quite a bit in 2020 (because of a promotion), but I still will pay more than what I estimate those payments will increase to. I could up my payments, but it will delay other life goals. Decisions.

On the personal front:
  1. Lose weight - 40lbs would be nice. Always a goal, never a success.
  2. Run 650 miles
  3. Join the library and stop buying books! Reading is great, folks, but I spend way too much on books that I can get digitally through the library!
 
What I'm really still debating is my 401k.

Don't skimp on this. Trust me! I had some bad advice when I was younger and now I'm looking at not meeting my retirement goals because I just didn't have enough in there to benefit from interest over the years. It's super tempting to take that money and use it for things like loans now, but the more you put in now the better off you'll be later!
 
Don't skimp on this. Trust me! I had some bad advice when I was younger and now I'm looking at not meeting my retirement goals because I just didn't have enough in there to benefit from interest over the years. It's super tempting to take that money and use it for things like loans now, but the more you put in now the better off you'll be later!
Right, but I’m already over my employer match and assuming I contribute the exact same dollar amount over the next 35 years (even without contemplating any pay increases) I’ll have a million (at 6%). Obviously a lot can happen between now and then, I’m still young. Meanwhile I have a LOT of student loans and I’m looking at a large tax bill when it’s forgiven in 20 years. It’s definitely a balancing act. I don’t intend on decreasing, I’m just not sure increasing is the best move right now.
 
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2020 goals

Financial
  • Save to fund Roth IRA $13,000 early in 2021
  • Emergency fund to $10,000
  • Continue monthly funding of short range accounts (2020 vacations, Christmas, memberships, insurance)
  • Start moving/house fund
  • Pay off vacation due in April and May
Personal
  • Workout 3x week
  • Lose weight, 20lbs would be good but main focus is getting healthy and back to work outs which haven't been happening
  • Research dementia preventions and see if I can work into lifestyle changes
  • If moving in 2021, end of year housing and work plans into place
Not too many goals. On financial, save ahead to fund Roth earlier in the year. Not paying off the car early, well at least it's not my focus this year. DH is opposed to paying it early, so we defer there but it's not anything to stress over our difference of opinion on payments, but rather, it will be down far enough by the end of the year that it can be a goal for next year. Continue to save in short range funds, that seems to work pretty well for me. We have two vacations in 2020, and maybe a trip or two with my IL and or DD.

*edited, I added a few things, and the rest of talk that wasn't about goals but just general, I'll have to move the rest of my post off of my goals list and talk about at another time!
 
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Right, but I’m already over my employer match and assuming I contribute the exact same dollar amount over the next 35 years (even without contemplating any pay increases) I’ll have a million (at 6%). Obviously a lot can happen between now and then, I’m still young. Meanwhile I have a LOT of student loans and I’m looking at a large tax bill when it’s forgiven in 20 years. It’s definitely a balancing act. I don’t intend on decreasing, I’m just not sure increasing is the best move right now.

$1 million sounds like a lot, but you should check out retirement calculators to see how long that might last you in retirement. To maintain your standard of living over a 30-year retirement, it is suggested that you save around 15-20% of your income annually. I would slowly work at increasing your retirement savings with that goal in mind.
 


$1 million sounds like a lot, but you should check out retirement calculators to see how long that might last you in retirement. To maintain your standard of living over a 30-year retirement, it is suggested that you save around 15-20% of your income annually. I would slowly work at increasing your retirement savings with that goal in mind.
Oh I’m saving 12% in a 401k, more in a HSA, and then more separate. 1 million is assuming that I never get a pay raise and never increase the $ amount saved in the 401k. I fully intend on getting at least a few more raises and upping my contribution accordingly. :)

However, the question now is should I increase it next year when I still don’t have the down payment for a house and student loan debt. I worry if I focus solely on retirement, I won’t be able to buy a house for a long long time, if at all (single income here).

I definitely get the importance of compound interest and contributions while young, which is why I’m over my employer max. It really is just balancing future needs with retirement.
Adulting is hard!
 
I feel like I'm never going to reach my financial goals sometimes. Currently I'm trying to save up to pay off a 401k loan and I'm expecting that to take most of the year. I'm putting 2% into my retirement just so SOMETHING is going in, because I can't save to pay off the loan and contribute a full 10% at the same time.

Besides that, I have 48,500 left on my student loans. Right now I'm just paying the minimum since I'm trying to snowball the 401k loan. After that I don't now what to do. Should I try to contribute more to pay it off sooner, or focus on other financial goals, like getting a real savings account going? We plan on moving within the next year, and probably again a year after that down to Florida (end goal!). I always feel like I will never be able to afford anything. My MIL is going to help us buy a house, so I don't have to worry about that. But financial security just feels out of reach right now.
 
I feel like I'm never going to reach my financial goals sometimes. Currently I'm trying to save up to pay off a 401k loan and I'm expecting that to take most of the year. I'm putting 2% into my retirement just so SOMETHING is going in, because I can't save to pay off the loan and contribute a full 10% at the same time.

Besides that, I have 48,500 left on my student loans. Right now I'm just paying the minimum since I'm trying to snowball the 401k loan. After that I don't now what to do. Should I try to contribute more to pay it off sooner, or focus on other financial goals, like getting a real savings account going? We plan on moving within the next year, and probably again a year after that down to Florida (end goal!). I always feel like I will never be able to afford anything. My MIL is going to help us buy a house, so I don't have to worry about that. But financial security just feels out of reach right now.

The first thing I would do is to ensure that you have at least some money in savings. For some $1,000 feels comfortable. For others, this is more. Then I would definitely focus on paying off the 401k loan asap. Since that loan will take a year, I wouldn't get too worried about what your next steps will be as far as debt dumping because it seems like looking that far ahead is too overwhelming. Baby steps.

Also, are you using any kind of budgeting method so that you are keeping a close eye on your spending? We use YNAB and really love it, but there are other ways to budget as well. When we started using YNAB, we were able to identify our problem spending and bring things in line with both our financial means as well as prioritize our money so that we were spending based on what we actually valued. Things started to feel a lot more manageable after that and we saw a ton of progress towards our financial goals.
 
I have my own budget I use, I didn't like any of the tools available. I definitely need to cut impulse spending, especially on food. I'm a bit depressed by my situation right now, so i'm coping by going out and buying things, which isn't helping at all -_-
 
I've been reading this thread for ages but never post. I anticipate needing support in the coming year(s) and you all provide each other so much of that and always so kindly!
:welcome: Happy to have you along for the ride! Please keep all hands inside the moving vehicle at all times. :rotfl2:
I have my own budget I use, I didn't like any of the tools available. I definitely need to cut impulse spending, especially on food. I'm a bit depressed by my situation right now, so i'm coping by going out and buying things, which isn't helping at all -_-
It's a hard habit to break. What helps me is actually holding it or putting it in the cart, and then putting it back (even if it's at the checkout and I tell the clerk "not that, please."). There's a sense of ownership that I get and pride that I get to make that final "no."
 
So my Reactive Arthritis is back which first hit 2 yrs ago. This time it's in my hands, wrists, elbows and shoulders. I couldn't even grip the gallon of milk this morning for my coffee.
My rheumatologist is out on medical leave and the next appt with someone else is late January. I don't want to keep missing work but on Wed I was so ready to just collapse at work by 2pm and then got stuck much later than usual. I could hardly carry my lunchbox home and was ready to just ditch it in an outdoor trash can on my way to the train. The only thing that stopped me was that I have some important things in the side pockets and didn't feel like stopping to dig it all out.

Today I rested but there's really no improvement. Right now I have off the day after Christmas and another day the week before Christmas to get our house ready & shop since we're having all of my family over for Christmas dinner. If I keep missing more work, I won't have enough hours of time off to cover those days and I'd have to work them. Grr.. I really like having off the day after Christmas.

I'm done shopping and everything is wrapped so that's one less thing to worry about.
 
:welcome: Happy to have you along for the ride! Please keep all hands inside the moving vehicle at all times. :rotfl2:

It's a hard habit to break. What helps me is actually holding it or putting it in the cart, and then putting it back (even if it's at the checkout and I tell the clerk "not that, please."). There's a sense of ownership that I get and pride that I get to make that final "no."
Something I've found very helpful is making wishlist. I do it on Amazon, on ShopDisney, on Goodreads, and on Steam. It keeps me from buying the actual thing if I'm pacing it out
 
So my Reactive Arthritis is back which first hit 2 yrs ago. This time it's in my hands, wrists, elbows and shoulders. I couldn't even grip the gallon of milk this morning for my coffee.
My rheumatologist is out on medical leave and the next appt with someone else is late January. I don't want to keep missing work but on Wed I was so ready to just collapse at work by 2pm and then got stuck much later than usual. I could hardly carry my lunchbox home and was ready to just ditch it in an outdoor trash can on my way to the train. The only thing that stopped me was that I have some important things in the side pockets and didn't feel like stopping to dig it all out.

Today I rested but there's really no improvement. Right now I have off the day after Christmas and another day the week before Christmas to get our house ready & shop since we're having all of my family over for Christmas dinner. If I keep missing more work, I won't have enough hours of time off to cover those days and I'd have to work them. Grr.. I really like having off the day after Christmas.

I'm done shopping and everything is wrapped so that's one less thing to worry about.
Reactive arthritis sounds like a very painful type. I can commiserate somewhat with arthritis I get what you mean on pain!
 
Ok, so I got really off track in 2019. 2020 is going to be better. I'm paying on student loans and a HOL but interest is low so not the first priority. Thanks all for helping keep me accountable!

2020 Personal Goals
  • Lose some of the weight I gained this year, about 40 lbs
  • Fully commit to Stars Wars Half Marathon/10K and Wine & Dine Challenge training - almost got swept at 2019 Wine & Dine

2020 Financial Goals
  • Save for 9 day trip to Tokyo Olympics and Disney in July. Half of Airbnb is paid for. Still need airfare, food, park tickets, spending $$, ect - $4500
  • Increase emergency savings, currently at $1355, would like to get to $3000
  • Pay down credit card debt, currently just under $14K, all currently at 0% interest
 
Dh and I have been talking about how we want to fund replacing our roof, because we knew it needed to be done sooner rather than later. Well that is definitely gonna have to be sooner rather than later since we just found a small dripping leak in the roof in the garage. 🤦‍♀️ I know nothing about roof replacements so I'm not sure what our options are. I know we definitely dont have $10k just lying around to pay for it. So once spring hits, I think we're gonna have to start looking into estimates. My dad also called me a little bit ago asking for $100...so yeah...

Happy Friday the 13th?
 
Dh and I have been talking about how we want to fund replacing our roof, because we knew it needed to be done sooner rather than later. Well that is definitely gonna have to be sooner rather than later since we just found a small dripping leak in the roof in the garage. 🤦‍♀️ I know nothing about roof replacements so I'm not sure what our options are. I know we definitely dont have $10k just lying around to pay for it. So once spring hits, I think we're gonna have to start looking into estimates. My dad also called me a little bit ago asking for $100...so yeah...

Happy Friday the 13th?

When we had our roof done in 2006, there were a few areas where the wood had to be replaced completely, but the majority of it was okay. We had a complete tear off of the shingles (we’re only allowed two layers in Chicago-after that all shingles from prior roofing jobs must be completely removed) and a few small repairs to the wood underneath and our total was about $4,200.

Of course, YMMV depending on the size of your house and even the area of the country you are in. Definitely get 3-4 estimates as early as possible because contractors get very busy in the Spring. We found some companies would not even come out for an estimate because they were so busy.
 

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