For the last few, possibly 7, years I’ve been halfheartedly attempting to pay off my debt. Last year I got serious, started this blog, and really dedicated myself to being debt free.
In December 2015, it became clear that I would be able to achieve my goal in 2016. Not wanting to lose steam and find myself right back into debt I added a few more goals.
I’m so glad I did! My priorities have changed a bit so I’ve updated my goals and my action plan.
Goal 1: Help ML
Our goal is to have ML be debt free. ML has been paying his own debt but with my debt gone I’m going to be putting 66% of my extra money towards his credit card. By my taking on his credit card, he’ll be able to put more money towards his student loan. With a little luck we’ll both start 2017 debt free!
Goal 2: Home Improvement Fund
A few years ago I owed the government money, I had switched jobs that year and one of the companies hadn’t taken enough off my paycheques to cover my taxes. I ended up owing ~ $700 so I set up a tax savings account to cover if this happened again.
It’s been a few years and I’ve gotten tax rebates every year. So this year I converted the fund to a Home Improvement fund and kept putting the allocated money into it. I’m going to put 22% of my extra money to this. Hello Kitchen!
Goal 3: Emergency Fund
The extra 12% is going here. After I explored my fears regarding cutbacks I’m not as concerned about this. I still feel it’s important to have an emergency fund but I also feel that I have a decent buffer at the moment. The 12% will allow me to slowly have my entire buffer in one place.
Did you make resolutions this year? If so, up to re-visiting or re-committing to them? I’d love to hear how it’s going!