Several months ago I wrote a post about our financial adventures and implementing a new budgeting plan (inspired by Dave Ramsey) that recommended we pay our loans with the lowest interest rates first. Do you remember it? We’ve found some success to it and are eager to share (original post can be found here).
We augmented a similar plan that Mr. Ramsey suggests in his book, The Total Money Makeover, and have been adhering to it for seven months now. We are proud to report that we have officially added Mr. Buck Williams to the Davis family. That’s right! Our sleek, Blazer-whip is officially ours!
We made our last car payment in January 2015, almost a year after purchasing it, and have been benefiting a great deal since. The monies that we used to pay on our car loan are now going directly in to savings. Once we rebuild our savings back to an amount we can live on during the summer months that E is between employment, our intentions are to deposit those extra funds on our student loan with the lowest interest rate. Our goal is to continue with the debt snowball momentum we have gained from paying off our car and tackle our student loans. Our new found success motivates us to continue to work diligently, adhere to our budget each month and, albeit slow, watch our debt decrease.
It’s been a few weeks now since losing our car loan and the rewards, though still early, have been noticeable. I am excited for the months to come and look forward to one day soon yelling, ‘we’re debt-free’!