Under 2 years to debt free!

We are still using the old YNAB4, cause it has been working great for us.   I've got my EF all stocked up, bills are paid and all the extras are going to my debt snowball. The calculator officially is 1 year and 11 months to being completely debt free. That is no CC debt, no mortgage, no line of credit, nothing!   I'm so stoked. Was thinking of making a countdown for our fridge to keep us motivated!   Planning on making the minimum for debt snowball every month, then at end of month anything extra will go on debt snowball as well.  

 

Any tips on how to stay motivated? What have you done to count down?  

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  • Nice!  My current date is March '23 to finish my car (finished the student loan off last month), but once I get the snowball going on that it should move up to mid '21 instead (I'm building up my buffer a little first).  Woohoo!

    My motivation is looking at all that money I won't be snowballing towards the car anymore that will be able to go towards other goals, as well as looking forward to the amount of the monthly car payment going right into my savings account to earn interest while waiting for when I need a new car.

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  • Hi. I know someone who does countdown’s for savings or debt. Maybe draw a fridge and break it up by $100 increments and do a count down. And red it out as you go. 

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  • I just paid off my fridge. We had a 6/mos 0% interest and it was due 7/16/19. I am so excited to have that paid off. 

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  • Wow. That is awesome. Since you won’t even have a mortgage payment what I would do is pick something that costs the same as that total monthly debt payment. Maybe a trip? 

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  • I'd put in categories for maxing out retirement funds.  Although I suspect that when we pay off the mortgage if we stay in our current home, we'll be deep in the putting kids through college/technical school part of life and so we'd probably put half to retirement and half to that, depending on if they get any financial aid at all.  I'd probably put up reminders of a trip to Europe or pictures of craft rooms/workshops also, as a reminder of things we could do if we had the money.  

    But really, the thing that gets me more motivated is checking on the the forecast thing our financial advisor did with all our current information and how our actions today positively or negatively affect our goals of retirement/moving to a slightly larger house with a garage/putting the kids through college.  

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      • MXMOM
      • MXMOM
      • 2 yrs ago
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      Technicolor Cheetah Those darn kids!!! We are deep into it now and I tell everyone I know with young kids, start putting the money aside NOW for school.  We are cash flowing some of it since we started way too late. I am torn daily whether to fund their school or my retirement. Experts say to fund retirement and let the kids fend for themselves but I am trying to stop the cycle of debt so I don't want them to get used to borrowing money to achieve their goals. Again, we started way too late which caused this dilemma. Also, Matt broke his arm right at the beginning of the summer meaning the money we had agreed he was paying toward school won't be there. Again, I don't want to instill the idea of falling back on debt to fund things when sh*t happens. We are rolling with the punches. 

      So hear this - if you are in Canada, start funding those RESP accounts now to the maximum to get the grants. FREE government money is on the table. Don't leave it there.  If you start when they are young, you won't feel it as much. Tell your relatives (that's you grandma) not to spend money on cute outfits or toys they won't remember when the kids are infants. Put the money into an RESP instead. And maybe to get the cute photo opportunity, have a little cap and gown baby photoshoot everytime the kid gets one of these gifts. Cute pic and smart money!

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      • Technicolor Cheetah
      • Not sure when I became a cheetah...but I'll run with it
      • technicolor_cheetah
      • 2 yrs ago
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      MXMOM 

      I remember when we were getting a loan for a larger new to us vehicle in 2014 (our Honda Civic was cramped with a booster and two carseats), the bank officer was telling us all about how he just sold his *insert luxury brand* coupe to pre-pay his 3 year old's college tuition.  In the state we live in, you can prepay semesters of tuition at state schools at today's prices.  And we just looked at each other, like, what world does this guy live in to be able to do that.   We thought we were doing well to put $75 a month per kid into their college funds, we had a mortgage and a $500 a month car payment on one income.  We've been able to increase that amount to college but our financial advisor says that we can cover today's tuition costs when the kids get to college if we put in $350 a month per kid.  Of course, when the kids are in school in 6-14 years, tuition will have gone up even more.   Hello mortgage payment.  We're doing well to put in 10% of take home, no where close to where we need to be according to our financial person.  If we get a raise this year, we'll put half to retirement and half to kids' college funds as we're already paying down the mortgage at a faster rate.

      We can't get away from school loans, especially if the kids want to go to a private college or out of state.  I don't want my kids to enter the job market with a mortgage-sized debt around their necks.  And I don't have the space or inclination to have a multigenerational household in 20 years

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  • Thanks!  It seems like it is getting closer and closer.  Our plan once it is paid off, to split the money between a couple savings accounts (1 long term and 2 shorter term (vacation and new vehicle)), so we can grow our savings. Luckily we've been putting away money in our kids education fund already, so they will have some money to give them a headstart with school. I've got 4 kids and we don't plan on paying the entire amount, but I'd like to give them some to help out.  

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