Welcome to my debt payoff update for February 2019! In these updates, I detail our progress on our debt payments for the month and highlight any updates in our financial situation.
I started this site to hold Mr. TMG and me accountable in our debt payoff journey. I also want to inspire and encourage others who are in debt (especially if you owe six figures like we do) by showing everyone that debt doesn’t have to be forever.
Whatever your numbers, I hope you find some inspiration in our story.
Let’s get to it!
Debt Payments
Here is a breakdown of our loan payments in February:
Mortgage: $1,120.05
FedLoan: $26,027.31
Guys… What. Is. LIFE?!
I’ll get into my feelings more in reflecting on the remaining balance, but in short
Check out some of our previous debt payoff updates below to see our journey:
- 2017 Debt Payoff Update: How We Paid Off $47,029.45 in One Year
- March 2018 Debt Payoff Update: $16,203.64 Paid
- June, July, and August 2018 Debt Payoff Update: $29,015.09 Paid
- September 2018 Debt Payoff Update: $9,488.99 Paid
- December 2018 Debt Payoff Update: $10,010.69 Paid
- January 2019 Debt Payoff Update: $28,111.90 Paid
I mentioned here that we’re generally following the debt snowball method, which has been working out really well for us. Mr. TMG also got a second job for a while, when Little TMG was an infant, which sucked but helped accelerate our debt snowball early on.
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We put any other extra or out-of-the-ordinary money, such as tax refunds, directly on our loans.
All of these steps have helped us get to where we are today!
Updates
We got another nice boost this month because of our tax refund!
Lots of people think it’s silly to get tax refunds, but while we’re focused on this goal of paying off our debt, it works well for us.
As I mentioned here, it’s much easier to be responsible with a huge chunk of money one time than to make good decisions with a little bit extra every month. When you’re dealing with a little extra each month,it’s easier for little expenses to creep in during the month, which decreases the total amount you have to put toward your goals.
If you want to see more tax refund goodness, check out the updates from February 2018 and March 2018, as well.
In personal news, if you are subscribed to my email list or follow me on Twitter, you know Baby TMG made his way into the world two weeks early, at the end of February.
We’ve been adjusting to life with two kids the past couple of weeks, and it’s been going pretty well. Little TMG is loving being a big brother, which definitely helps.
With two kids and a pup, our family has outgrown the coupe Mr. TMG bought when we graduated from college. It only fits one of the car seats at a time, so it would be impossible for him to pick up both kids if necessary down the line.
I’m on maternity leave now, so that situation shouldn’t arise until I’m back at work, but we’re going to save the next few months to get another car that will fit all of us.
Remaining Balances
When we set out to pay off our debt and realized we had over $670,000, I felt like I couldn’t breathe.
I truly can’t believe the progress we’ve made. It seems like just yesterday we were staring down this insurmountable goal, and now we’re getting closer and closer to living life on our own terms.
Here’s where we stand currently:
Grand Total: $499,255.64 remaining
Guys, we paid off all the interest on Mr. TMG’s med school loan!!!
Now our payments will go to attacking the actual amount he borrowed, rather than the tens of thousands of dollars in interest that had accrued.
As I’ve explained before, we filed our taxes separately while Mr. TMG was in residency so that his minimum payment would be based only on his salary in residency while we focused on my law school loans.
The minimum was nowhere near enough to cover the interest. As a result, we accrued well over $30,000 in interest from the time we started this journey back in January 2017, on top of the ~$40,000 that had already accrued while he was still in school.
Despite that interest, we were able to pay off a considerable amount last year, including all of my student loans, so I’d say we made a good decision.
Plus, now all that interest is GONE.
Whew, chillay!
And we just broke the half million dollar mark, too?
I literally cannot.
How did you do with your financial goals last month? Did you make the kind of progress you wanted to?
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Ready to get out of debt?
Hi, I’m Rho! I’m a wife, mom, and Biglaw associate who believes that true wealth is having control of your time. I help busy lawyers like you take back control of your time by teaching you how to achieve lifestyle freedom through mindset shifts and financial independence. Read a little more about me here.
