Monthly Progress Report – March 2014

#NoMoreStudentLoanDebt

Last month I paid $50.00 on my student loans. This month I paid : $391.05 #winning

Every month I’ll detail my #NoMoreStudentLoanDebt pay-off progress report. 

WHY? Because goals are accomplished when they are tracked.

That being said this is what I did to support my goal.

1. I created a Mr. Miyagi payment to support consistent payments and focus my attention. With everything that happened this month in terms of potential expenses this one action was truly my savings grace.

After my computer and hard drive failed, the starter on my car went out. So in addition to losing virtual access to my business I also lost my ability to transport myself from
one place to the next. All around it was a sucky, financially stressful month. BUT I didn’t lose focus because everyday I made a payment of $5.50. This small payment gave me satisfaction to know that if I didn’t do anything else but make this payment I could pay at least $2k off my loan in one year. This slice of daily satisfaction kept me motivated and focused.

WHY do I call it a Mr. Miyagi payment?

Many of us who have massive student loan debt have seen the original Karate Kid. There is a scene in the movie when Mr. Miyagi makes the karate kid wax on and wax off a dirty rusty car. The karate kid is frustrated and pissed off that he appears to being doing nothing when he’s suppose to be learning karate. That is until one day, Mr. Miyagi try’s to hit the boy and his arm immediately swipes up in a wax on motion. Essentially the repetitive motion of waxing on and off the car unconsciously created a rock solid foundation for learning how to fight his opponents.

I know right now $5.50 a day seems like I’m doing nothing relative to $160k target. But one day I’ll have $20k sitting in the bank and when it’s time to make a payment I’ll simply wax on. 😊

Additionally I’m training my mind and body to make student loan payments instead of making Starbucks, lunch, and snack payments. Making the payment everyday focuses my attention and gives me strength to say NO for the rest of the day to spending on unnecessary things.

2. Next I searched for additional sources of income.

Inbox dollars – hasn’t really panned out maybe a glitch in the auto responder.
$0.00

Checkout 51 – this works well I’m up to about $12 which again isn’t a a lot but I’m making cash back on grocery I already purchase so it’s like getting a cash back reward. These checks are sent in $20 increments.
$0.00

Mystery Shopper – this hasn’t panned out either simply because I haven’t found a shop that fits my schedule
$0.00

Meal Prep – this was exciting and helped with my thinking for next months grocery budget and meal planning
Earned: $75.00
Tithes: $7.50
Taxes:$22.50
Payment: $45.00

Plasma Donation – I donated twice this month my goal was twice a week. I’m going to switch centers so I’ll earn $25 a donation as oppose to $15 a donation. If I make it twice a week as planned that’s $200 extra a month on my loans.
Earned: $30.00
Tithe: $3.00
Taxes: $7.50
Payment: $19.50

Bonuses/Tips
Earned: $120.00
Tithe: pre-calculated
Taxes: taken from hourly wage
Payment: $120.00

New Job – still waiting on my second interview.
Earned: $0.00

Pay-off Breakdown

Minimum Mo. Payment
Total Paid: $50.00
Previous Month: $50.00
Difference: $0.00

Mr. Miyagi Method (aka $5.50 a day)
NOTE: I missed 6 days this month
Total Paid: $137.50
Previous Month: $0.00
Difference: $137.50

Change Jar
Total Paid: $19.05
Previous Month: $0.00
Difference: $19.05

Misc Income/Bonuses/Tips
Total Paid: $184.50
Previous Month: $0.00
Difference: $184.50

Total Paid: $391.05

Loans
1. $3,235.74 –> $2,844.69
2. $65,738.43 – same
3. $86,323.2 – same
4. $8,234.00 (interest) – same

Starting Debt: $159,664.00
Ending Debt: $159,252.95

So far I am super proud of myself. I increased my debt payments by nearly 400%. No I’m not deceiving myself with this statistic I am celebrating my big, SCARY, AUDACIOUS step on to this course.

The sound bite for these musing could very easily be: a mompreneur of two pays off $160k of student loan debt in less than a year by paying $5.50 a day and $391.05 in her first month, read on to learn how she did it! Wouldn’t you be more likely to read that story than this story: a mompreneur of two pays off $160k of student loan debt by winning the lottery and paying debt instead if spending her winning, read on to learn how she did it! The former is a TON more realistic, doable, and hopeful.

My point is: this is a very real thing that I’m doing and as one commenter said it’s nice that I’m not paying off my debt with one magical
lump sum of money. 1. I don’t have a magical lump sum of money sitting around 2. When I had a fairly nice lump sum I didn’t pay debt because I wasn’t taught to pay debt as a priority systematically over time.

Lastly, I’ve come to realize in the 13 posts that I wrote this month the reason why I was inspired to go on this quest publicly was to inspire HOPE.

I want my generation and peers to be hopeful about the future we are creating. I want as to know that hope is powerful enough to dig ourselves out of a $160k holes we’ve created.

So no I don’t have a magical lump sum of money but I what I do have are principles and precepts that say if I operate according to His word the King will open a window and pour out a blessing.

What I do have are many (underused) talents.

What I do have is time and a fierce determination to reach this goal. So this month I am proud of me!

Moving upward and onward… At my current burn rate it will take me FOREVER to pay off this debt. So I’ll have to get really radical this next month to get my debt snowball rolling faster.

Payment goals for month 2

1. Pay off loan #1 at $2,844.69
2. Pay Mr. Miyagi payment of $5.50 a day
3.Secure an additional earned/passive income.

I’m curious for those of you actively making student loan payments, how much did you pay this month?

#NoMoreStudentLoanDebt

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