Accountant by Day
1Mar/136

Goodbye student loan!

As of February 2013, my student loan is 100% paid off!

For the last few months I have been making $1,000 payments towards the loan, so hopefully I will now be able to put this money to good use in other ways.

Goals for using extra money freed up from loan payoff:

1. Increase emergency fund/savings to goal amount (10 - 12k. Need to pick a number.)

2. Pay off mortgage at a faster rate, in order to get rid of PMI ASAP.

3. Buy a bicycle

4. Pay for repairs around the house, namely, gutters and tree maintenance.

After step 1, I'm not sure what order to prioritize everything in. The bicycle I want to be able to use this Spring. The mortgage will save me even more the earlier I start making increased payments. The repairs aren't urgent, but the longer I leave them, the more small damages get caused by falling branches and excess rainwater leaking into the basement...

Any opinions on which goals to accomplish first?

Comments (6) Trackbacks (0)
  1. I would probably tackle the repairs first. As an avid bicyclist, I would probably suggest getting a bicycle next. I love riding my bicycle!
    krantcents recently posted..Should Age Matter?

  2. Wooo!

    How quickly could you get the PMI paid down? If it’s relatively quick, I’d go for that in order to free up more cashflow for the other goals. If it isn’t, then bike and maintenance seem to be the next logical places.
    Nicoleandmaggie recently posted..What did I learn from the February Challenge: And March’s mortgage update

    • If I paid $1,000 extra per month I could get rid of the PMI in about 2 years. Judging from paying off my student loan, it would probably take a bit longer than that since I can’t pay $1,000 extra every single month.

      2-3 years seems like a long time to wait before bike and home maintenance…
      Kellen recently posted..Goodbye student loan!

  3. Congratulations for saying goodbye to student loan. If you can work on saving with home maintenance by making some DIY solutions, you can get the most awesome bike you want or make several increased payment on PMI, not necessarily increase rate permanently.
    Amy @ JobCred CV Builder recently posted..Interests and References as Final Step for Your CV

  4. Congrats on getting the student loan paid off, wish mine was paid off! By the way your site appears to have an issue with come Google analytics code, it’s showing up at the top of the page.
    Izzy recently posted..As a sole trader how do I account for paying myself?

  5. Wow..congrats. I loved that milestone. I didn’t have a house though when I paid off my loans so I got to bask in the debt freedom for a while. I suggest making an annual maintenance budget. There will always be costs with a home and it’s better to just plan for it.

    My advice on the tree guy and I had this happen a couple of times. It seems that tree people vary their quotes quite a lot depending on how busy they are. The cheap guy last time was the expensive one this time and vice versa. Try to do the tree stuff off season if possible. Spring is a busy time for them as is after big storms.
    First Gen American recently posted..Staying Motivated during Debt Reduction


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