Well, it’s payment day! It’s also my birthday…AND two days before I fly to FinCon. I’m still getting used to my new bi-weekly paychecks. I’m also working on redesigning two websites. And writing. Lots. In the midst of all the excitement, I made a student loan payment. On Payment Day this month, I gave $350 to my lender.
That’s right. I paid only $350 this time. Here I am running a blog that’s focused on RAPID DEBT REDUCTION and all I paid was $350 this month.
Well, here’s why:
1. Quarterly Tax Bill Due
Although I’m no longer technically self-employed, I still have another quarterly tax bill to make. I held back a big chunk from my last big contract check…but not enough. I didn’t realize that I’d be a full-time employee somewhere when the bill came due, so I didn’t have another big contract check to pull the cash from. I had to scrape together another $1,000 for taxes…which I did not want to take out of savings.
2. Birthday Spending
I spent a little money on self-care. I won’t lie. I got my hair cut, a pedicure, and a massage. I also went to dinner a few times. But that’s it. That’s probably a total of $225. Ouch. Okay, that hurts to type. But, you only turn 40 once.
3. FinCon Cash
I’m a few days away from FinCon and I just bought business cards. Shipping costs were a doozy. I don’t know how I’m getting from the airport to my hotel and back. I haven’t decided whether or not I’m going to drive myself to the airport and park my car or have friends drive me. So. Many. Decisions. I also need to take some food money and some fun money. I had no idea what to budget, so I wanted to err on the side of more. But, that meant less cash thrown at the loan.
4. Waiting on Side Gig $$$
One of my side gigs is in full-swing, but I won’t get my first paycheck from them until September 25th. I thought about taking money out of savings and replenishing it with side gig money, but then decided to just make a bigger payment in October. As big as I can.
In the meantime, I’ll make that measly student loan payment. It’s a little bit bigger than what I used to pay – before I started the rapid repayment plan. The minimum payment due is $198, so I’m still paying more than the minimum. What’s exciting is: the amount of interest is so much lower now.
I was paying $198 and seeing $126 of that go to interest. Now, I’ll pay $198 and see only $32 of it go to interest. Since I’m paying $152 over the minimum, I’ll have a lot more going to the balance than I once did.
I’ll have $318 going toward the balance.
That means my new balance is $11,478.
Still making progress. But, I’ve got bigger hopes for October’s payment.