Why do we PF bloggers do what we do? What is YOUR ultimate goal with all this torture (is it torture?) of cutting expenses, frugality and paying down our debts aggressively? Some days I doubt what I am doing and other days I feel strong. Today it feels like this is a never ending hole that I can’t wait to get out of.
I always say that if I got the chance on a do-over on my life I would make the same choices because I like how I turned out, what I learned and where I ended up. But would I really?
My ultimate goal is FI:Financial Independence. Remember how good it felt when you didn’t have any bills to pay when you were a teenager, just a cellphone and the rest your money was yours? I do remember that and I’m sick of sending off my hard-earned money to everyone else. I want to pay myself.
The only way to do that is to get out of debt and never ever get into debt again. I know that FI for me is a loooong way off, I’ve got a bunch off stuff left to do before I reach that day. For now, my immediate plan is to get rid of my Student loan and once that is done to keep throwing extra bits of money to my mortgage, my only remaining debt. Once I’m done with my student loan I will have about $1,350 a month in ‘disposable’ dollars at my current income. I will be able to use this to pay down my mortgage, save a bigger e-fund, renovate my house… travel. Whatever I want to do! Except go back in debt, of course. It is only that vision that keeps me going because frankly. This stuff gets booooring and it’s hard to keep giving my money away to my past self. It honestly sucks. The only thing that keeps me doing is the carrot at the end of the stick; to get my money back.
I’ve calculated that my debt-free date could be December 2015, including my current mortgage on my current path. What’s your debt-free date?
Check out this awesome snowball debt calculator and see what the difference is when you pay just a few dollars extra here and there; What’s the cost? and for further reading consider David Bachs’ book The Automatic Millionaire.
Ps; IMG source here.