True Student Loan Relief

Student Loan Relief, Student Loan Forgiveness and Lower Interest Rates are all over the news. There is even speculation that studen loan debt with be the bust similar to that of the mortgage.

I wanted to find out how my student loans and my strategy to get rid of them measure up to whats on the tables.

Here are the FACTS

• Loan Amount:               $ 54,180.00
• Minimum Payment:    $       352.00
• Interest Rate:                6.75%

OPTION #01: ORIGINAL SCHEDULE –Minimum Payments

• Number of Payments:   359
• Paid Off Date:                 July 2007 to June 2037
• Balance Paid:                   $    54,180
• Interest Paid:                  $   71,857.39
• Total Paid:                        $ 126,037.39

OPTION #02: Student Relief Plan (unveiled by Obama on 10.26.11)
My payment would remain unchanged because it is not greater than 10% of my discretionary income.

This is what I could look forward to after 20 years…

• Number of Payments:   240 (119 were forgiven)
• Paid Off Date:                 July 2007 to June 2027
• Balance Paid:                   $   23,693.03
• Interest Paid:                  $   60,434.97
• Total Paid:                        $   84,128.00

This program sounds good and can be beneficial, but it is not ideal. At first glance it looks like the government is forgiving over half of the principal balance. Once you calculate the total after 20 years you will see that I would have paid back the loan principal in full plus $29,948 in interest. I would  save over $40K in interest, but this is not incentive to pay minimum payments for 20 years.

OPTION #03: Debt Snowball

In addition to student loans I had $50,450 in credit card debt and car loan, which meant I paid an additional $849.92 in minimum payments.

• Number of Payments:   124 (135 were avoided)
• Paid Off Date:                 July 2007 to June 2017
• Balance Paid:                   $   54,180
• Interest Paid:                  $   29,291.41
• Total Paid:                        $   83,471.41

The final outcome is similar to the Student Loan Relief plan, but it ends 10 years sooner. Being gazelle intense will only move the dial.

OPTIONS #04: Debt Snowball with Gazelle Intensity

This is an estimate based on what has happened between JUL 2007 and APR 2012 (58 Months)

• Number of Payments:   73 (286 were avoided)
• Paid Off Date:                   July 2007 to June 2013 (decreased by 24 years)
• Balance Paid:                     $   54,180
• Interest Paid:                    $   17,331.67
• Total Paid:                          $   71,511.67

The reason this took so long is that I had an addition debt burden to be paid off. If there weren’t other debts in the way my student loans will be long gone.

In Conclusion

I am a believer that the best way to get after student loans or any debt is to have a plan of attack and get gazelle intense about it. Don’t wait on the government to do you any favors, especially if you don’t have too.

Have you heard of Daily Money Managers?

Recently, I have been introduced to a growing group of professionals. They are called Daily Money Managers. What are your thoughts on this? Below is a brief discription of what they do.

What is a Daily Money Manager?

Daily Money Management is a rapidly evolving field which has grown form both financial and social service roots. Daily money managers (DMMs) provide personal and social support assistance to clients who have difficulty in managing their personal monetary affairs. The services meet a variety of needs, from organizing and keeping track of financial and medical insurance papers, to assisting with check writing and maintaining bank accounts. Social support includes a variety of related assistance areas, such as arranging for in-home care and medical appointments, and providing information regarding community resources available to meet other needs.

12 in 2012: February Goal Update

I got the original idea for 12 in 2012 from Serendipity’s Guide To Saving.

As of February 1, 2012

1. Pay off the remained of my debt.
   I have been working on this since July 2007 and it is finally time for this goal to be completed. I have come along way from $104,616 in debt to less than $30,000. With a minium payment of $15oo per month, I have $18.000 covered.
2. Bring in an addition $12,000 in income.
   Not 100% sure how this will happen. I will continue selling stuff on eBay, donating plasma & cutting the good ole budget.
3. Actively build my financial coaching business.
   Not 100% sure what this entails, but I do know that I will be drafting a strategy during my winter break.
4. Turn in my running shoes for a yoga mat and towels.I am no longer running because my body needs a rest, so I have decided to try Bikram Yoga. I will committed to it for at least 6 months.
    
   I am focusing on completing the Insanity video set during Jan and Feb. Yoga will start in March.
    
5. Complete my 2011 Year Book @ Picaboo.com by end of January.
   Every year I use picaboo.com to create my own personal yearbook. They are costly so I won’t be printing it until my debt is paid off. I like to do this because we don’t print pictures anymore and I like to share what I have done with others. Sometimes the new year will be half over before I finish creating the book.
6. Volunteer for 12 organizations
   I love volunteering and serving others, but I have found myself in the role of coordinating volunteers instead of an individual contributor. This year, I want to sign up and show up.
    
   This goal has been modified to volunteering once per month. I have contacted the Salvation Army and I serve at my church.
    
7. Say “No” to the things I am not interested in doing.
   So often I agree to do things that are alright and take a ton of time. I agree because I don’t want to let the other person down.
8. Develope a Pre-Marital Financial Coaching Workshop
   Money is a huge factor in relationships, but seldom can couple find a place to seek council that doesn’t cost an arm and a leg. I want to put together a workshop that will help couples understand emotion and mechanics of merging finances.
9. Decrease Travel
   Thats right…I said I want to travel less. I work for an airline so I am constantly presented with the opportunity to travel some place amazing and some places not so amazing. This year I will only travel for weddings (AZ & LV), Thanksgiving (TX) and Christmas (??)
10. Learn to eat healthy
    Clearlly I eat like a single person. I want to add variety by trying new recipies. I eat what I want when I want. I want to create my own COOKBinder of the recipies that I try.
11. Complete the Instanity Workout Program
    Pretty self explanitory.
12.  Be Intentional About Building Friendship
    My friends and I go out to eat from time to time, but that is it. We don’t interact any other time or around any other activity. I want to plan activities (i.e. ice skating, rock climbing, rollar skating, volunteering, having a picnic, etc) on a monthly basis that will get us out of our comfort zones.

Bonus

1. Only go to Wal-Mart once per week

What’s New & Good: January

Source: 1.bp.blogspot.com

 

Amazing Things From January 2012

1. Started Insanity
2.  

 

Time to Boast ~ All Things Amazing

Tanner from Working for a Goal did a post on negitivity in the PF community.  In her efforts to bring shine a positive light she made a list of the things that she is proud of.

I started thinking to myself  ”Why do you think it is so negative?”. What I came up with is…As PF bloggers our focus is on overcoming challenges and hurdles, so we talk about sacrifices that we make and look for support and advice from others. It isn’t that we are negative as much as we are focused on something that is considered to be negative in our society, when really it is just a part of our lives.

In 2012, I want to do my part to shine a postive light in the PF world. While thinking about what I could do I thought about my grandfather. He is in his 70′s and for as long as I can remember he has gone to Hardee’s everyday to meet his friends. No matter what I do big or small, he tells me “You know we are going to have to do some boasting.” This means he is going to go to Hardee’s and brag on his grandaughter. So, I am going to take a note out of his book and make a space on my blog for all things good and postive.

Source: 1.bp.blogspot.com

 

Amazing Things From 2011

• I paid my debt down to under $30K.
• My dad brought my nieces for a surprise visit.
• Had a good time with my step-niece & -nephew at Thanksgiving
• Enjoyed a ton of Yamellows for thanksgiving
• Made a great new friend
• Learn that I can not be responsible for other peoples responsibilities
• Visited with my mom and converter 35MM negatives to digital pictures
• Started a successfull ebay hustle
• The sweet treats business is a success and we made money this year.
• Was featured in a local news article.
• Completed 3 half marathons, a 10 miler and a quarter marathon.
• Met up with friends for the half marathon and 10 miler.
• Ran with the local running group
• Found a church that I love attending
• I completed a budget every payday

I know that I could fill several pages of great things from 2011, but it is hard to recall them right at this moment. In 2012, I will keep track as the year passes.

12 in 2012

I got this idea from Serendipity’s Guide To Saving.

2011 has quickly passed and 2012 is finally here. I had an awesome 2011 filled with many memorable experiences. Now to get started on making 2012 AMAZING!!!!!!!!!!!!!

1. Pay off the remained of my debt.
   I have been working on this since July 2007 and it is finally time for this goal to be completed. I have come along way from $104,616 in debt to less than $30,000. With a minium payment of $15oo per month, I have $18.000 covered.
2. Bring in an addition $12,000 in income.
   Not 100% sure how this will happen. I will continue selling stuff on eBay, donating plasma & cutting the good ole budget.
3. Actively build my financial coaching business.
   Not 100% sure what this entails, but I do know that I will be drafting a strategy during my winter break.
4. Turn in my running shoes for a yoga mat and towels.I am no longer running because my body needs a rest, so I have decided to try Bikram Yoga. I will committed to it for at least 6 months.
5. Complete my 2011 Year Book @ Picaboo.com by end of January.
   Every year I use picaboo.com to create my own personal yearbook. They are costly so I won’t be printing it until my debt is paid off. I like to do this because we don’t print pictures anymore and I like to share what I have done with others. Sometimes the new year will be half over before I finish creating the book.
6. Volunteer for 12 organizations
   I love volunteering and serving others, but I have found myself in the role of coordinating volunteers instead of an individual contributor. This year, I want to sign up and show up.
7. Say “No” to the things I am not interested in doing.
   So often I agree to do things that are alright and take a ton of time. I agree because I don’t want to let the other person down.
8. Develope a Pre-Marital Financial Coaching Workshop
   Money is a huge factor in relationships, but seldom can couple find a place to seek council that doesn’t cost an arm and a leg. I want to put together a workshop that will help couples understand emotion and mechanics of merging finances.
9. Decrease Travel
   Thats right…I said I want to travel less. I work for an airline so I am constantly presented with the opportunity to travel some place amazing and some places not so amazing. This year I will only travel for weddings (AZ & LV), Thanksgiving (TX) and Christmas (??)
10. Learn to eat healthy
    Clearlly I eat like a single person. I want to add variety by trying new recipies. I eat what I want when I want. I want to create my own COOKBinder of the recipies that I try.
11. Complete the Instanity Workout Program
    Pretty self explanitory.
12.  Be Intentional About Building Friendship
    My friends and I go out to eat from time to time, but that is it. We don’t interact any other time or around any other activity. I want to plan activities (i.e. ice skating, rock climbing, rollar skating, volunteering, having a picnic, etc) on a monthly basis that will get us out of our comfort zones.

Bonus

1. Only go to Wal-Mart once per week

Liebster Blog ~ 5 Blogs I Love

Many thanks goes to HAWAII PLANNER for giving me the Liebster Award!  

“Liebster” is a German word meaning dear, sweet, kind, nice, good, beloved, lovely, kindly, pleasant, valued, cute, endearing, and welcome. What a gift to be awarded with such kindness!   As for the details…The Liebster is a way to show a little Blog Love to bloggers who currently have less than 200 followers.

The rules:

1. Thank the giver and link back to the blogger who gave it to you.
2. Reveal your top 5 picks and let them know by leaving a comment on their blog.
3. Copy and paste the award on your blog.
4. Have faith that your followers will spread the love to other bloggers.
5. And most of all – have fun!

And in alphabetical order, here are my 5 Liebster Awards, with some information culled from their bios:

• Jessica @ Budget Savvy Bride: She is The Budget Savvy Bride! In the process of planning her own budget-savvy wedding, she realized there weren’t alot of resources out there for brides like her. She decided to keep track of her wedding planning experiences in blog form, and little did she know how useful her experiences and tips would be to so many budget brides! Since getting married in May 0f 2009, she has continued sharing tips and tricks for how to save money on your big day. Her goal is to be a valuable resource for brides looking to have a fabulous wedding without breaking the bank!
• Laura Johnson @ Specializing in the Impossible: Laura’s husband quit his job, to pursue composing and freelancing as a color pencil artist. She was just starting a new job, not sure how things would play out she started a blog.
• LBC Teacher @ Homeowner by 30: She is a middle school teacher. She LOVEs living in Long Beach. Other interests include good podcasts, cooking, happy hour, feminist issues, and reading. I also like to talk about Personal Finance, but rather than make people uncomfortable by trying to bring it up in person, she started a blog. If you have a PF blog, let me know, I love to read new blogs.
• Serendipity @ Serendipity’s Guide to Saving: She is in her mid-twenties and currently live in Las Vegas, NV. She does not work in a casino nor live in a hotel, as so many people tend to perceive. She works for a non-profit,  she is insanely passionate and lives with her fiancee Rambo. She recently graduated with my AA in Criminal Justice and is currently working on my BA but it’s been a long and steady process. With whatever free time she has these days, she loves to blog, watch films, read books, spend time with those she cares about and watch bad tv. Also, she is insanely competitive with dancing on the Wii. She’s not afraid to say it.
• TeacHer @ TeacHer Finance: She 26-year-old high school teacher working to get my financial house in order and enjoy life…on a notoriously small teacher’s salary. I don’t make a big income and probably never will, but I believe that living a life of purpose – and fun!

Operation Bankruptcy Freedom is a go…

This week I am not doing my TMMO Status Update in light of recent news.

Source: quizzle.com

Yesturday, my employer filed for bankruptcy. Being that this is my first bankruptcy, I do not know what to expect or do in the present momement. In a conference call the new CEO said “we will be in a state of uncertaintiy for the next few months”. I have many questions that know one knows the answers to, but by the time the dust settles we will have all the answers we could have wanted.

I am forever greatful that I was wise enough to become financially literate in 2007. I can not even imagine how I would feel today had I not made the decision to become agressively play down my debt and become debt free. Even though I am not debt free at this very moment I have options. The company is operating “business as usual”, but the employees should probably work on their contingency plans. We can expect a change in benefits, pay and layoffs.

When I talk to people I ask them if they have a bankruptcy plan. The most common answer is “what do you mean?” followed by a “NO”. Sad but true.

From my days as an Air Force kid, I have taken a liking to giving every effort a name that begins with the work “Operation”.  As of 11/29/11, Operation Bankruptcy Freedom is a go.

Operation Bankruptcy Freedom

Phase I

• Temporarily half extra payments pushed to student loans
• Temporarily reduce the amount of the automatic withdraw from student loan company
• Temporarily redirect funds to a savings account that is not used.
• Keep an eye on the budget
• Dust off and update the resume

Phase IIa (only if my pay is reduced)

• Rework budget
• Resume agressive payments to the best of my ability
• Take money from savings account to pay lump sum on student loan
• Look for new job

Phase IIb (only if  I am laid off)

• Apply for unemployement
• Apply for loan defermant
• Rework budget
• Consistantly sell stuff on eBay
• Look for new job (approx 3 hrs per day)
• Build financial Coaching business (approx 3 hrs per day)

 Have you gone through a bankruptcy with an employer? If so, please share your advice.

No Budget Thanksgiving

I have to admit I did not budget for Thanksgiving like I was supposed to. My brother and I drove 4 hours to our Dad’s house and back.

I filled up my tank before we left using my gas card which was only budgeted for my regular travel not special occasion travel. I knew we would make it but I didn’t know where the money to return would come from. I had money, but it was all allocated for other things.

When we got to town I remembered I had $20 in gift cards for Wal-Mart that I picked up from the car dealership. I was able to use it a the Wal-Mart for gas, but this wouldn’t get us back home it would only last while we were in town.

I went with my friend and her family to the outlets, but I didn’t buy anything. I had $5 and a bunch of change. For lunch I was able to order off the kids menu and pay cash. I had $0.35 left.

Just before leaving I remembered I had money left on my FOOD Gift Card (Wal-Mart). I decided I would use my grocery money for gas. Luckily there was some money left to get some staples for the week.

All in all it was nice not thinking about it, but it sucked to have to worry about it.

 

Financial Bucket List

1. Pay off remaining debt.

Source:mplresearch.com

2. Fully funded emergency fund.

Source: PennyPinchinDad.com

3. Contribute to retirement on montly basis

Source: ualocal501.org

4. Take my nieces on the Disney Cruise

Source: cruise.forcleverpeople.com

Did I mention that I am trying to win “the $500 Give Me Back My Five Bucks competition, sponsored by Life Insurance Finder, the life insurance experts.