Sharing My Successes After a Long Hiatus

[Daughter_of_Hybrid]

Hi there everyone,

After joining MMM in the beginning of the summer, having been introduced to the site and the community by my dad (who else but Hybrid), I set my first 3 MMM goals:

1.  Pay off credit card (10.99% interest rate) - $1,200.
2.  Save $1,000 emergency fund.
3.  Pay off highest interest rate student loan at 6.55% - $1,200.

Today, as a fitting start to my new year, having already achieved the first two goals, I completed my third goal by making an $800 payment to pay off that student loan.

I'll admit the first goal was practically achieved for me as my boyfriend owed me some money which about equaled my credit card balance.  After introducing him to MMM and going over his spending habits and finances with him, he was able to get his finances on track and pay me back in a few short months.  Coupled with some overtime and higher paying consulting work I did at my job and a big end of year bonus, I have now completed all of my first three goals!

When I first started this journey, I was super excited and perused MMM on a daily basis.  But in realizing just how long (or so I thought) it would take me to achieve even the first of these goals, my enthusiasm soon waned and I stopped visiting MMM.  It's hard to get excited over the prospect of an MMM life when you're still stuck on phase 1 of paying off debt (and despite my first three goals, I'm still in that phase).  But through some hard work and fortunate circumstances, I am now beginning to see the light at the end of the tunnel and that enthusiasm has returned.

As yet another fitting start to my new year, I present to you my next 3 MMM goals:

1.  Pay off student loan with 4.5% interest rate - $1,830.
2.  Pay off company stock loan with 0% interest rate - $600. (this one will end on its own while I'm still on #1.)
3.  Pay off car with 5.59% interest rate - $11,000.

Assuming I don't incur any further debt, after the completion of these next three goals, I will be officially debt free!

[pachnik]

Happy New Year, Daughter of Hybrid! 

I just wanted to say that the skills you are learning and utilizing here such as goal-setting and excellent money management will really pay off in the long run.  Instead of wallowing in debt, you are getting out of it and are probably feeling very debt-averse too (maybe?).   At your age, you are off to the best start possible.

I would say 'welcome back' but I don't think that is appropriate because you were always here in spirit!

[Charlotte]

Great job!! It is so nice to see young people "get it" and turn their lives around (and way before I did!)

I wish you many, many successes in your future!

[Lil_Bit]

Good job.  Keep it up.

You should also follow this thread, it's very inspiring and seeing the goals of others keeps me motivated as well:

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/2014-financial-goals/

[Indio]

Congratulations! The first few steps are always the hardest but then you pick up speed.
Your father is probably very proud of what you achieved!

[Koala0924]

Those are great goals, and you have a winning attitude so I'm sure you will do well.  Financial success is a marathon, not a sprint. I have to remind myself of this so much. Also, I think you will find your successes will build upon themselves and you will accomplish your goals quicker than you originally thought.

[Fireman]

3.  Pay off car with 5.59% interest rate - $11,000.

Since the car is further down the list, I would suggest that you look into refinancing for a lower rate.  This will allow your dollar to stretch a bit further as you will pay less interest. 

One other thought: I've read about leveraging interest paid versus interest earned.  My understanding is that if you can earn a higher interest rate than what you pay on the note, pay the minimum on the note and use the remaining money to make money at a higher rate.  With that being said, a part of me would rather be debt free than try to leverage. 

Good luck in 2014!

[dude]

3.  Pay off car with 5.59% interest rate - $11,000.

Since the car is further down the list, I would suggest that you look into refinancing for a lower rate.  This will allow your dollar to stretch a bit further as you will pay less interest. 

One other thought: I've read about leveraging interest paid versus interest earned.  My understanding is that if you can earn a higher interest rate than what you pay on the note, pay the minimum on the note and use the remaining money to make money at a higher rate.  With that being said, a part of me would rather be debt free than try to leverage. 

Good luck in 2014!

Was going to suggest the same thing.  Maybe it's your age or credit history, but that's a high rate for a car loan.  Consider joining a Credit Union; mine has very good rates for car loans (used and new).

[hybrid]

Congratulations! The first few steps are always the hardest but then you pick up speed.
Your father is probably very proud of what you achieved!

He is!  Daughter definitely has her financial head on straight.  We share financial information pretty openly, so she has an idea what the inheritance is looking like.  As you might suspect, she was a little disheartened when comparing where Mom and Dad are compared to where she is.

Then I tell her that's because I am a full 21 years ahead of her.  When I was her age I was at the very low point of our financial careers, we were sinking in over 30K worth of debt and pondering bankruptcy.  Fortune stepped in and I got a much better paying job with lots of OT and we dug out of that hole and I am stronger for it, but I wouldn't wish that life experience on anyone.  Daughter is already 20K ahead of Dad at her age AND she has a better head for finance than I did back then, so I have nothing but boundless optimism about her future.  She is smart, works hard, and makes good decisions.  What Dad could want more????

[oldtoyota]

Congratulations! The first few steps are always the hardest but then you pick up speed.
Your father is probably very proud of what you achieved!

He is!  Daughter definitely has her financial head on straight.  We share financial information pretty openly, so she has an idea what the inheritance is looking like.  As you might suspect, she was a little disheartened when comparing where Mom and Dad are compared to where she is.

Then I tell her that's because I am a full 21 years ahead of her.  When I was her age I was at the very low point of our financial careers, we were sinking in over 30K worth of debt and pondering bankruptcy.  Fortune stepped in and I got a much better paying job with lots of OT and we dug out of that hole and I am stronger for it, but I wouldn't wish that life experience on anyone.  Daughter is already 20K ahead of Dad at her age AND she has a better head for finance than I did back then, so I have nothing but boundless optimism about her future.  She is smart, works hard, and makes good decisions.  What Dad could want more????

So sweet! =-)

[Daughter_of_Hybrid]

Thank you so much everyone for the kind words of congratulations and encouragement!

I've have been met on these forums with nothing but support and well wishes.  I don't know why I stayed away for so long - it really is a great community.

And of course, thanks Dad :)

To the folks who mentioned looking into a lower interest rate on the car - thank you very much for the advice and I will definitely look into it.  I know the interest rate is high for a car, but you're right about my age / lack of credit being a big part of it.