Nearing the end… Only 1 payment left!

I said to myself, “Self, great day!” … was a statement that my Economics professor in college would often say.  We are finally down to one student loan payment remaining.  It’s funny.  I told myself that I want my student loans paid off before my oldest child turns 10.  I can’t remember why I picked that magical number in the first place.  I think I estimated how much we could realistically pay, and then projected out.  Well… he turned 8 this past January.  So I would say that we far exceed that goal.  The most exciting thing of all, is that we won’t be paying that 7.5% interest rate any longer.  Instead, we will be investing that money and receiving about the same level of return back .  Again, a great day.

We can’t wait to start really making big differences in our finances.  The first changes we will make are:

  • Booking that Hawaii vacation (see Hawaii Vacation Temptation)
  • Fully-funded emergency fund (3-6 months of expenses) by end of year
  • 15% for retirement, including maxing out Roth (currently we only do 4%, with a 3% match)
  • Increasing the mortgage payment so it is paid in full within 15 years of the origination date
  • Improving our quality of life (no more rice and beans or beans and rice)
  • Maxing out the 529 college savings plan on all the kids
    • Contributing $3800/year/child would give a tax credit of $950 for 5 kids ($190 each)
Let the fun begin!