i actually started formulating my financial plan at the beginning of october with the help of a few great resources. what really got me in gear was a face-to-face meeting in october with shannon from the barter babes project. she got my wheels spinning on a great financial plan, how to stick to a budget and introduced me to a variety of ways to tackle my debt. after crunching some numbers i decided to move ahead with phase one of my plan at the start of november. i should add that at that time, i was a tad over $55,000 in the red.
phase one: get a heads start on my plan by using all extra funds available to bring debt down to a more manageable level. i was able to pull together $12,200.00 to do so and put $1,500.00 into an emergency fund by the end of november. not a bad start if i do say so myself!
at the end of november, i discovered two websites that really ramped up my enthusiasm. give me back my five bucks - a quest for financial independence through the eyes of a 20-something canadian blogger has been a great source of inspiration providing play by play examples from someone that was in the same boat as i am + doing marvelously post-debt! another blog called debt free forever by gail vaz oxlade was another huge kick in the backside...and an effective one at that. this article really gave me a push.
phase two: strategize. thanks to some great tips from the above noted resources, i revised my plan to get more bang for my buck so to speak. with much thought (read: 6 hours of calculations) i decided to juggle my debts. at the end of it, i had two of five debts with the highest interest rates paid off using my line of credit. when all was said and done, i was able to save a few thousand dollars in interest and be out of debt 6 months sooner than originally planned. so the end of july became my new debt free date...just in time for my 35th birthday!
phase three: pay off debt diligently. with only three debts to worry about and a solid plan, i'm feeling like these 600 days will go by quickly. my plan is two-fold: firstly, on top of the monthly minimums, i plan on making a monthly payment of $1800.00 (minimum) on the debt with the highest interest. any additional funds at the end of the month will be added to this amount. secondly, i have budgeted an additional $100 on the debts that are not my primary focus so that i continue chipping away at the principal. And of course, any additional funds will be applied. 600 days and counting!
a chance to get a leg up...
i recently learned about a contest being run by givemebackmyfivebucks and life insurance finder, the life insurance experts. they're offering $500.00 towards a lucky winner's financial bucket list. those five bills would help me reach my 600 day goal that much sooner. check it out...i for one will be giving it a go!
Recap of my 600 day financial bucket list:
1. pay down my debt of $44,231.88 before my 35th birthday...600 days and counting!
2. Generate 50-60% of $100k+ target net income for 2012
3. Double my business income in 600 days
4. Establish contingency fund of $5000.00
5. Collect all monies loaned to friends and family - $4,670.22
6. Limit of 1 dinner out per month - $30.00 max
7. Follow a very strict budget
8. Blog at least once a week about my progress
9. Seek out any opportunities that will make this plan a success- for starters, the $500 financial bucket list contest is a great start...and at least it will get me blogging more for the sake of accountability!
bye for now!
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