100_3407It’s not working.

Our financial situation, that is.

Somehow, everything is going wrong.

In the past year and a half, we’ve paid off $13,000 in debt.  That’s good.

But, our total amount of debt is still a little less than what we make in a year.

In two years, if my husband lands a research job, our income could double.  That’s good, too.  But we’re not there yet.

It’s Time to Start Saving

Our minivan is almost 9 years old and has 120,000 miles on it.  We have nothing saved for a replacement.  We don’t even have anything planned for car repairs, and with a car this old, you know they are coming.

We currently rent, but we want to buy a house.  Again, we have nothing saved for that.

The World Doesn’t Stop While You Pay Down Debt

All our attention has been on debt repayment, as if the world somehow stands still while we pay off our debt.

Guess what?  Life still happens.

I’m 42 now, and I’m tired of putting everything on hold until the debt is paid off, especially since there is SO MUCH debt.  I’m tired of having a pitifully tiny emergency fund and always feeling like I’m on the financial brink.

I’m tired of having the slightest unexpected expense throw our finances out of whack.

I’m just tired.

So, a change is in order.

We’re going to pay a set amount on our debt every month.  I’ve used a handy online calculator that helped me figure out if we pay this set amount every month and we don’t take on any more debt, we’ll be debt free in 5 years–July, 2018.  I’ll be 47.  And I’ll be debt free for the rest of my life.

For now, any extra money I make is NOT going to go on debt repayment.  It’s going to go toward a 3 month emergency fund that I want to establish.

Once that’s in place, I’ll start putting extra money away for a car replacement fund and a car repair fund.

If there’s still extra money after that, THEN it can go on debt repayment.

For now, I wave the white flag, accept that debt will be part of my life for the next 5 years, and plan to save for my financial future so I don’t ever go in debt again.

What do you think of this plan?  Crazy or reasonable?

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