18 for 18!
With 2018 just around the corner, I’ve been giving a lot of thought to what I’d like to see accomplished in the coming year. 2018 will be our second year on our journey to debt freedom, and I’m feeling optimistic! Although we didn’t pay off near as much as I’d hoped in 2017, we are still in a far better position than we were 12 months ago, and I genuinely believe from this point that it will only get better.
Back in June, I wrote a post about our ETA for getting out of debt. Despite the challenges of this past year, that goal has not changed. I still want to see us consumer debt-free before 2020 rolls around. With roughly $47K remaining to pay off and only two years to make it a reality, time is now of the essence.
While our goals may look good on paper, I have also learned it takes a lot more than just writing them down to turn them into reality. Having a plan is every bit as important as the goal itself. Creating a plan has been weighing heavily on my mind, and that is where the idea of 2018 minimums comes in!
I am calling this plan 18 for 18. What this means is paying off a bare minimum of $18,000 in 2018. As for why not half of our remaining debt? Well, with our Spring roof repair cost being an albatross around our neck right now, 18 for 18 is a doable amount. The amount will also push us to do more once our roof repair is complete. As for the how, keep reading!
Simple math shows that to achieve our goal of paying off $18,000 in 2018, we need to pay off an average of $1,500 each month. With our current minimums, we are reducing our debt by approximately $1,200 every month. For those who might be new readers, what has dramatically helped us is getting most of our financial obligations transferred to zero-percent interest. The two balances that aren’t are at 1.99% and 5.99% until paid off. So, with this 18 for 18 plan, we would need to come up with an additional $300 each month.
Is $300 extra each month doable even with the need to save for our
albatross roof? With my recent increase in hours, I do believe it is. Breaking that $300 down a bit further, it amounts to needing an extra $69.23 each week which makes it feel even more doable! Even with this, though, I am fully anticipating some financially challenging months. Strange as it may sound, I am good with challenges as it will push me to do more.
I also think by having these self-imposed minimums, it will give us a psychological boost of paying down extra debt as we save for our roof repair. Admittedly, I probably need this more than Hubs. Our smallest debt is now down to $1142, and I want it gone! While I won’t touch our savings plan, I have been giving thought to how I can increase the snowball.
So, this is our plan for 2018. 18 in 18. How about you? Have you set any goals for the coming year? And equally as important, what will you do to turn your goals into reality?