Denial, it is a beautiful and painful tool. We used it with our student loan debt. 4 years ago when we were done with school we calculated what we racked up. We had that figure in our minds but didn’t factor in interest that was accumulating on the loans we had to put in forbearance or lower the payment to just interest payoff, if you have had bills and no $$$ then you have danced that dance.

Time passes, jobs improve, and we start paying them all, even throwing extra money when it comes in. But we never went back to figure exactly how much accrued during that rocky period. Well I did it yesterday. Approx $152,100. Major F (censored just in case the kids are reading… Not my kids, they can’t read yet but ya know…anyway).

So what now? I’ve hit up a few calculators some are more positive then others. The government says at $2000 a month we could payoff in 5 yrs. CNN is not as nice. They are saying about 8 yrs. Both suck to me. But that Harvard dude paid $90000 7 mons. Of course he didn’t have two kids and was making six figures. But there has to be away for us to do it!

So we have about 1.5 the amount of debt × 7 mons × 2 kids = 2 years. So can we really get rid of this debt in two years? I think we should at least try.

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My phone screen is cracked, and thinking I was being smart with two tiny destroyers grabbing for the magical glowing screen when ever it appears, I got insurance.  Wrong.  Total rip off. I am not sure how much it is, like 8 bucks a month?  Well it has been 7 months that is $56 bucks, and when I went to get it replaced it will be a $100 deductible.  Um..that is more than what the phone is worth.

But then I found this fabulous article! http://www.mrmoneymustache.com/2013/05/30/republic-wireless-19-for-an-unlimited-everything-smartphone-plan/ BUT the phone company whom we hand over $100 each month for our two phones says it will be $350 per line to cancel. Ok math time.  Let’s say we cancel the insurance because it is crap, so that drops us down to $84 per month for the next 17 months = $1428. Crap that seems like a lot of money…ok keep computing…. Republic would be approx $44 after tax x 17 months = $748 + 700 for canceling = $1448.  So I guess we would save $20 sticking with what we have.  Unless I have done my math wrong.

And I still have a cracked screen…oh well.

This is awesome! We’ve got crap to sell, I could try once again to get a job (the last few attempts have been far from fruitful, but if at first…), and flasks are cool!

No More Harvard Debt

Day 214 | $90,717 paid | $0 till freedom

On August 29th, 2011, seven months ago to the day, I went online to check the balance of my student debt. I graduated from Harvard Business School with my MBA and $101k of student debt in May 2009 and I had made 21 monthly loan payments of $1,057 since then. I was expecting to see a balance of around $80k or so.

I had failed to take interest into account; the balance actually stood at $90,717.

Feeling trapped, I challenged myself to pay off my student debt within ten months.

I had no idea how I was going to do it. I didn’t have a huge stockpile of cash, my 12-month salary after tax was less than the balance of my loans, and the ten-month timeline was completely arbitrary. I had a mortgage on my house and two cars and a…

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well pretty much anything.

When your staying home all day with two little people under the age of 3, pretty much everything begins to look exotic and tempting.  For example, last night my husband said, “I’d love to just have two days on a beach to read and write, with no distractions.”  And I responded, “I would love just one hour completely alone…wait, I would love to be able to go to the bathroom, completely alone.”  Dreaming big.

So now it is nap time and the heavens have shined down on me and both kiddos are actually utilizing this time to nap.  Rather then being really quiet like a nap is occuring but actually being totally awake and secretly taking everything out of the dresser and making into a nest on the floor. What to do with this gift?  Start a blog about everything that consumes my thoughts!  Even if I am the only one to read this, who cares, well…I would care a little.

What has been consuming my thoughts, diapers aka anything related to my kids, debt aka approx 120,000 in student loan debt (weeping) and dogma aka what rules do I follow to set in motion an epic change in our lives to get us out of this mess.  Dogma is probably not the right word, but I’m really into alliteration. So its ok.

How did we get here:

Well, give two teenagers with no real parental guidance the option to take out a bunch of loans with the idea that we would grow up to be financial ball’rs and pay it later…um yup, that’s about it.

Where we are now:

If you look up financial wiz advice they often say that our debt is “good debt,” student loans and mortgage.  But it doesn’t feel very good when you have a spouse making a great salary but are still living paycheck to paycheck to pay off two art degrees that are currently not being used in the slightest.  I guess I do get pretty creative at times, but I don’t think it was my formal education that helps me figure out how to change a poopy on a baby trying to make a break for it.

I wanna be a millionaire:

Sure that would be great, but I really just want to have a retirement fund that is comfortable and not being paying evil private lenders with my social security checks.  But how the hell do we do it?  I feel like already we are pretty good a cutting corners with our money but there must be something I am missing because right now I am totally having a hamster moment, running and running, going no where.

So what now?

Lord knows I am not the first to try to be an awesome mom while trying to pay the bills so there has to be some resources out there.  Let the hunt begin! Hopefully not Hunger Games style because I don’t want anyone to die and I get really grumpy when I’m hungry.  Then feel like a jerk mom, when the oldest kiddo asks, “Are you nice mama yet?” So no starving allowed, but maybe more rice and beans, wait….um we are already eating that almost everyday.  crap ok, internet guide me to financial freedom!