Hey, Broke on Purpose Fam! We’re here with our March 2016 Debt Payoff Report. You all are usually used to me writing it up but this time, Mr. Broke on Purpose decided to get in on the action and share his thoughts below. Be sure to show him some love so I can get him to do this more often!
March Madnesssssss!! From the NCAA Big Dance all the way to the Final Four this month is filled with total exhilaration and epic heartbreak. This month also marks the conclusion of the 1st quarter of the year. Add to that the change in weather and March is a pivotal month. From here you can choose to solidify the paths to your financial goals or experience setback that could make you second guess things within the Broke on Purpose plan. Unlike the players in the NCAA, your success isn’t left up to chance. It’s all to you!
According to our Facebook Memories Broke on Purpose is officially 1 Year Old! Most people discovered Broke on Purpose when my wife and I posted our ten-month total payoff at the beginning of the year, but we actually didn’t start living this lifestyle until March 2015. Reflecting on the year brings up memories of sacrifice and disappointment but also revelations of great accomplishments. The disappointments around missing out on material things, like expensive athletic shoes and clothes to match. The disappointment of making the decision to cancel a much needed, week-long tropical vacation ( that one hurt!). Truly understanding that these sacrifices were for the better. During this year memories of the things that were done to accumulate the debt. Memories of nights spent working on computer programs in college with plans of finding a great job or sitting at the car dealership signing the paperwork for a new car that you felt you deserved. At those moments, the understanding of debt as a whole is not realized. The understanding that right now, a full 10 years later, were paying back student loans and just finished paying off those “deserved” cars and shopping trips.
Once it’s time to pony up for the debt the idea that ” I can pay the minimum payment” becomes the norm. But now, after understanding debt as a whole and how debt affects other parts of life, the thoughts become ” How much is this REALLY costing me?”. Not only the amount of interest you’ll end up paying in the long run, becomes an issue, but the question if there’s a true need or necessity for the purchase and the willingness to say ” I can do without it” or ” I can wait”. The discipline to make those decisions becomes easy once you understand and accept the end goal for your life….a life with options.
March Debt Payoff Breakdown
The month started with $3678 remaining on my wife’s Navient Student Loan. We were successfully able to pay off $3116 thus leaving only a balance of $562. That accomplishment brought a smile to my face. Our calculations show that this remaining balance will be paid off by April 7th (as of April 2nd this balance was paid off thanks to some early freelance payments coming in). The conclusion of this debt will allow us to focus our efforts on our next target in our snowball, which is a student loan totaling $41,717.22. Of that total , $3,318.01 is unpaid interest.
Our total debt payoff year-to-date is $39,425.00. This total also marks our 1 – year – anniversary of working our Broke On Purpose plan. So with all the excitement that surrounds a birthday, we want to use that energy to power forward and elevate us to higher heights in our second year. After some discussion Melody and I have declared that we will pay off at least, $30,000 of this AES loan by the end of the year.
So tell us, how was your month living Broke on Purpose. Did you tackle debt, did you pay off a large amount on that credit card? Did you make the move and cut up those credit cards? Share your successes with us below.
To learn more about how my wife and I were able to really take control of our debt be sure to pick up your copy of the Broke on Purpose Ebook and Financial Worksheet bundle.