My Journey to Eliminate Debt

Eliminating debt, downsizing & seeking a simpler life.

  • Published: Feb 13th, 2012
  • Comments: 11

Emergency Fund is fully funded – on to Step 4!

  Today we got internet banking set up on our new accounts. We have the mortgage account which starts with a debt of $200,544 and a 100% offset account. Our paychecks will be deposited into the offset account. The balance of that account is applied to the mortgage and interest is only charged on that reduced balance instead of being earned.

I decided to fill the FFEF so that now sits at $6000. That’s 3 months expenses. I went with the lower amount for a few reasons.

  • We will quickly be three months ahead in mortgage payments so no need to include them in the calculations
  • I have a months sick leave and a months recreation leave saved so thats 2 months leave if (heaven forbid) I got sick
  • DH has a similar amount of leave saved.
  • I just want to get on with it!!!

The next Baby Step is to invest 15% in pre-tax income for retirement – for us that will be a Self Managed Superannuation Fund – but that’ll be a post of it’s own.

In the meantime I’m setting up our budget with YNAB and crunching a lot of numbers!

 

  • Published: Feb 10th, 2012
  • Comments: 8

Tag – Your It!

Little Lamb  & Jane have tagged me in this fun question post.  A good way to get to know other bloggers a little more.

Here are the rules…
#1 – Post these rules.
#2 – Answer the 11 questions from the person who tagged you.
#3 – Create 11 new questions for the people you tag.
#4 – Tag 11 people and link them to your post.
#5 – Let them know that you tagged them.

Little Lambs Questions

1) What do you think is the biggest financial challenge you currently face? To continue to be frugal with the budget now that our monthly payments are reduced.
2) What is the best money saving tip you can share? Track your daily electricity use, turn off appliances at the wall and use solar lamps inside. We’ve halved our electricity costs by doing this.
3) What is the biggest challenge you have faced in your life and how did you overcome it?  I suffered from bad PTSD for many years. I overcame it by realising if I didn’t swallow my pride and ask for help, I wouldn’t survive it on my own.
4) What is your proudest accomplishment? Going to university when I was 38 (against medical advice) and graduating with honours, winning 2 academic awards and a scholarship.  …  guess I proved that teacher who said I wasn’t smart enough to go to uni  wrong :) ….  my time at uni was the happiest time of my life.
5) What is the best piece of advise you have been given during your life? Start where you are, with what you’ve got and do the very best you can.
6) What is the best cleaning tip you can share?  one word – Flylady!!

7) Do you clean a little each day or save it all for a specific time? A little bit each day and more on the weekends.
8) What chore is your least favourite and how do you make it more pleasant? Cooking dinner after work!   
I try and make it more pleasant by keeping it simple and quick and talking to our cat who sits on the table and watches every move I make in the kitchen intently.
9) What do you wish you did more often?
Spend more time outside bushwalking or just laying about in the sun.
10) What is one important thing about you that you would like to share? 
I’m a hippy chick wannabe. I should have been born 10 years earlier.
11) What did your mother (or other loved adult) used to do that you always said you would never do yet somehow you do it too?! 
Take nana-naps on the lounge!!  My mum used to do it and I swore I never would – but I confess I have joined the ranks of nana-nappers.

Janes Questions:

1. Describe yourself in seven words. Loyal. Mother Tiger. Empathetic. Stubborn. Open Minded.
2. Why did you decide to start a blog? When Dad was living with us I was up in the middle of the night with him nearly every night. I can’t go back to sleep once I’m woken. I’d surf the net and I started reading PF and carer blogs. It was a great way to connect with people at a time when leaving the house, except for work, was not possible.We had always planned to pay off our mortgage in five years so I decided to set up a blog to keep me motivated.
3. What is your favorite kind of cheese? You mean I can only pick one?
4. What keeps you awake at night? Worrying about money – but not so much now.
5. If you could change one thing about yourself what would it be? My weight
6. Here’s a question from Michael that he likes to ask me on the phone: “What are you wearing right now?”  A cotton gingham nightie
7. Tell us something about the person who tagged you! Jane constantly reminds me not to put off life till later.
8. Stretch out your arm and tell us what is the closest thing to you right now? A white solar lamp so I can see what I’m typing.
9. What’s your favorite flavour of icecream?  Do you lick your icecream or bite right into it? Passionfruit and only lick it, otherwise I get the dreaded ice cream headache.
10. Do you prefer the truth or a white lie that doesn’t hurt your feelings? The truth!
11. Do you like your life right now? Why or why not? Yes for the most part. I’m healthier than I was a year ago; our finances are much improved and my family are OK. I feel like we are making progress towards the downsized life we want.

Here’s my questions:

1. Favourite movie.
2. Whats your most frugal recipe?
3. Which superhero would you like to be?
4. If you would only read one book for the rest of your life, what would it be?
5. Who was your favourite teacher and why?
6. What brand name product do you refuse to give up to save money?
7. Most memorable sporting moment you’ve seen?
8. The one makup item you couldn’t live without?
9.  Do you have a nickname & how did you get it?
10.  If you could choose any job, what would it be?
11. How did you meet your best friend?

I’m tagging:
Planet Debt Free
Declutterer
Digging Out From Our Mess
Won’t go Down Without a Fight
The Quest for $85,000
One Family One Income
Head Over Heels in Debt

And if you’d like to join in – then grab feel free to grab a tag and join in!

 

  • Published: Feb 9th, 2012
  • Comments: 8

Old home loan is gone.

I logged into our bank account last night and the old home loan has been fully paid out – $0 balance The cheques to pay out the credit cards are now in the post to us. So those credit cards should be paid out by the end of next week and they will all be cancelled. Our new loan is set up and I should have internet access to that account in the next few days.

We have $2600 in our Fully Funded Emergency Fund!  Almost half way to our goal of $6000. It feels great to see the balance of that account going up so quickly. My plan is to put $700 a week in it for four more weeks and then we will accelerate our mortgage payments.

 

  • Published: Feb 6th, 2012
  • Comments: 2

Sunday /Monday chit chat!

Welcome to Sunday /Monday night chit chat – visit Carla to catch up with chatters

Start with a picture:

   This is my new challenge!  DD knows I love jigsaws and I haven’t done one for ages so she suprised me with this one.

What are you reading? – NO time for reading now I’m back to travelling for work.

Watching?House Gift with with Laurence Llewellyn-Bowen – nice and stress free at the end of the day.

Listening to?  Just loaded up a new series to start tomorrow morning -  The Dirt Eaters

Cooking/ Baking – chicken and salad tonight – too hot to cook!

Happy you accomplished this week?   I now have $2000 in my FFEF!!! It feels wonderful!

Looking forward to next week: Just  notified  our refinance will be fully finalised  this Wedensday!

Thankful for today:

The rain. I’ve spent nearly 6 hours travelling in the Central west, today and the countryside was so green after all the rain. Really beautiful!

 

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Dave Ramsey Steps

Current Step: BS4 & 6
BS1 Done
BS2: $36400 Done (refi Jan.2012)
BS3 $6000 DONE
BS4 9% emp.cont.($126000) setting up a SMSF
BS5 n/a
BS6 $0/$200,544

-----------------------------------
Baby Steps
Pre BS 1- get current on all bills
BS1 $1000 BEF
BS2 Snowball debt payoff
BS3 3- 6 months FFEF
BS4 15% income to retirement
BS5 Childrens college fund
BS6 Pay off home early
BS7 Build wealth & give!

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