Debt free scream scheduled for October 2027?

Tonight we graduated from Financial Peace. We've been aggressively paying off debt for a while but I'm really glad we took the class together. I got home and decided I wanted to do some extensive excel projections on how things would look if we did things the "right" way, and how long it'll take us to be debt free.

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Debt:

Car payment: $456 ($5,500 balance)

Student loans: $181 ($33,000 balance)

+ $2,183.00 snowball payments

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Fun milestones:

Our car loan will be paid off with our May 2019 payment

Our student loans will be paid off with our May 2020 payment

Our $13,000 6 month emergency fund will be funded in September 2020

We'll begin funding retirement at that point (we currently have this paused)

We will put our snowball towards savings, and have $60,000 for a down payment by May 2023

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We plan to buy a home in the $225,000 price range with $60,000 down in Spring 2023. On a 15 year mortgage, the total PITI mortgage payment will be approximately $1,600.00 total. We are projecting high on the interest rate since we don't know how they'll look in a few years.

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We plan to pay at least $3,000/month on our mortgage (increasing it by $100/year), invest $565/month in mutual funds, and continue to save 15% each month for retirement.

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So here's the fun part...... See you guys in October 2027 for my debt free scream, where we'll also have approximately $204,000 in retirement, and $42,000 in mutual funds before the age of 40!

Posted Mar 18, 2019, 4:19 AM UTC

188
tashaxtina•

This. Is. Amazing.

I don't have the analytical skills to create something like this for myself, so I'll just be super excited for you guys.

Woooohoooooo!

7
FiloRenOP•

You can do it, it's just algebra and some basic excel formulas!

1
balazamon0BS3•

I did the same thing, but after you make your excel sheet it becomes a game to see if you can beat it. I had estimated almost 2 years to get to BS3 and it only took 13 months.

4
ElorieBS2•

You sound like me. The moment I was done reading Dave's book I sat down, built a spreadsheet to track my net worth and project out various options for snowballing payments. That way I saw what would happen if I paid $100 less on my snowball each moth to build a sinking fund, etc. That has helped me keep on track.

You sound like you'll be in a great place soon!

3
FiloRenOP•

Thank you! I definitely need to visualize things. Putting off buying a home is hard since 99% of the world thinks we're "ready" for it right now. So knowing that we'll be ready in Spring 2023 if we stick to this plan is encouraging. Just a few more years of living below our means and we'll be in a much more comfortable place by then! Gotta just keep chugging along...

2
ElorieBS2•

Me too!

And speaking as a homeowner, it's worth waiting to have peace of mind when in your new home. I have bought two houses now and each one felt like a financial hemorrhage no matter how much liquid cash I had. It gets crazy! But having that cushion makes it all far more bearable.

2

Thats all assuming your pay stays the same... it won’t. You’ll finish faster!

Good for you guys! Killin it!

3
iLoveSevBS7•

Yay, good luck!

2