I for one am glad that May is over. Truth be told, I can’t wait for June to be over as well. But May was a tough month, especially as it relates to paying down my student loan. Let’s take a look at my progress report for May.
Student Loan Repayment
In May, the beginning balance of my student loan was $11806.68. The minimum payment is $97.61 and the interest rate is 2.625%. My goal is to pay off my student loans by October at a rate of $2000 per month.
In May I was NOT able to achieve my goal. I made a $397 payment towards my student loans. The new balance is now $11,455.94, after accounting for a little interest.
I had a lot of work expenses in May, but I haven’t been reimbursed for those expenses yet. Once I get reimbursed, I’ll use some of that money towards paying down my student loan.
I have to say that it’s very unmotivating missing the $2000 payment on my student loans. It’s very easy for me to say that I can just miss another month and not contribute as much. But, part of the reason why I blog is to hold myself accountable. My goal is to get back on track in June.
To follow my progress towards paying off my student loans, visit my debt tracker for 2018.
Savings Rate
Below is my savings rate represented graphically. This graph will be updated monthly for the remainder of the year.
Since extra payments towards my student loans are calculated as savings, I wasn’t able to save as much in May as I would have liked. Moreover, I technically won’t be able to pay off my student loans by October at a rate of $2000 per month. I’m hoping that the reimbursement from work will help make up a higher contribution in June. That being said, I do anticipate June having increased work expenses as well. So, things are going to get a little bit fluid for the next couple of months. By that I mean, one month my savings rate might be high while another it might be low. Still, I’m looking forward to making steady progress towards paying off my student loan in October.
Personal Goals
I haven’t started working out in the gym as of yet. But, I have started exercising more, including running. My goal is to exercise every other day for the month of June. So far so good.
Life can be challenging at times. Sometimes it’s good and sometimes it’s bad. I said before that it’s amazing how my actions are determined by my mood and mindset. While I was really stressed for a bit, I’m starting to feel better. I do expect that it will take some time for me to feel great again, but, as the saying goes, “time heal all wounds.” Right now, I’m just thankful that things are moving in the right direction!
I’m super excited about the future. I do expect to share some good news in the upcoming months relating to my job. We’ll just have to wait and see.
Conclusion
October is just around the corner. I can’t wait to get to the point where I no longer have any student loan payments. Honestly, it hasn’t been wearing me down. But, it’s gonna be really awesome when I don’t have to think about it anymore.
I’m slowly getting back on track with my fitness goals, but I know that’s going to be a lifelong struggle.
What do you think of my progress so far? Let me know by commenting below.
Hey DP! Don’t be to hard on yourself for not making that payment goal this month. Sometimes life just happens. You made a contribution and your debt is that much smaller because of it. Inch by inch you’ll get to your goal.
For some inspiration watch the Al Pacino speech from Any Given Sunday.
Good to see your running again, keep up your progress and you’ll start to feel better as well. You can do it!
Mr. Robot recently posted…May 2018 Dividend Report
Thanks Mr. Robot. I’ll check it out.
DP –
COME ON! You have got this. You have fricken got this. Push hard, save more and knock down that student loan debt. COME ON!!!
-Lanny
October hasn’t come yet. Waiting for July/August to hit when I hope my finances will be in a much better shape to make up the difference. Trying hard to make that $2000 in June but it’s going to be tough as my accounts are currently $0 balance.
Thanks for the update. Although you didn’t pay off the loan as fast as you wanted, you are still crushing the minimum payments, which is much, much better than others are doing. And, holy cow you have great rates on those student loans…2.625%! At that rate it almost makes more sense to invest the majority in something earning more than that. Though I understand the benefit of having no debt payments to make.
My fiancée has more student debt than that and it is at 5-6.8%. After having saved enough for the all wedding expenses, we are planning on paying her debt off as quickly as we can. A “safe” 6.8% is much harder to find than 2.6%.
Keep it up!
Scott
Scott recently posted…May 2018 Income
Scott, you will get no arguments from me regarding the value in keeping that student loan given the very low fixed interest rate. It’s a decision I agonized over for a long time. The thinking was that I could make more in the market than the interest is costing me and therefore it makes perfect sense, mathematically speaking, to invest rather than pay off the student loans.
But then, I look at my age and my goal in being debt free by the time I’m 40. I think it would be really nice not having to worry about any student loan payments. And sure, I could make more in the stock market, but I’m going to feel really good once those loans are gone and all I have to do is concentrate on investing! No more decisions on should I pay off my student loans or invest. Come October, it will only be about investing!
Thanks for the comment Scott!!!
Keep working at it mate, don’t be so hard on yourself. You are doing really well. Keep up the great work!
Buy, Hold Long recently posted…April 2018 – Net Worth Update
Appreciate it BHL. Sometimes I get off the bandwagon but plan to have laser-like focus on getting rid of my student loan and maintaining good progress.
Hey DP,
It is admirable the way you aggressively try to pay off that student loan! Just keep slugging away at it and soon you can put the money you have been used to disappearing into something that actually makes more money appear!
Side note; looking back, do you think your education was worth the loan you got stuck with?
Regards,
– LD
Absolutely LD. I’m working in my career field and will soon be in a position where I will have increased money to play with all thanks to my education. Definitely worth it.
Just keep chipping away DP – I really try to focus on just one day at a time, especially when things feel tough or overwhelming. Then you just need to get down to focusing on one task at a time, or one step at a time. Manage that, and everything will take care of itself.
Cheers, Frankie
Ah, the power of focus. I completely agree Frankie and plan to do just that.
DP,
I think you are still doing pretty well with a 25% plus savings rate and elimination of student loans in sight. Keep up it good sir.
Maybe it’s confidential, but I’d love to see you write a little more about what you do for a living. I think you are on assignment outside the US if my memory serves correctly?
Tom
Tom @ Dividends Diversify recently posted…The Tussle with my Main Hustle | Part 2
Hey Tom. Yea, I’m currently working overseas, but maybe one of these days I’ll share what I do. It’s not confidential per se, I’m just private.
Hi Glen –
Thanks for the update. Regardless of the amount, anything toward debt that you brought down is still progress. Every lit bit will help. That’s still an impressive amount based on the other variables you outlined.
Overall, the savings rate is still great. Thanks again for sharing.
– Mike
Mike at Balanced Dividends recently posted…Finding Balance: Closing Time in Chi-Town
Thanks. Looking forward to increasing that savings rate for June, but we will see – not looking good.
30% saving rate is great. Dont overstreach yourself 😉
p2035 recently posted…My investment financial analysis
Thanks p2035. Over-stretching myself is what I do – hahaha.
Hey DP. Even if you can’t make October for eliminating the student loan, I suspect it might only be a month or two more, which still means no student loan heading into 2019. Keep plugging away… the end of that loan is in sight!
Nice job on those monthly savings rates!
Engineering Dividends recently posted…Recent Sell – SCG
Thanks ED. You are absolutely right! In all likelihood, even if I don’t pay off my student loans by October, I will definitely do it by December. I could have made December the goal, but I wanted to be a little bit aggressive with it, but give myself a couple of months wiggle room just in case. I would be very surprised if I still had any student loans on January 1, 2019!
It’s nice when the finish line comes into view! Go go go! 🙂
Jim Wang recently posted…Average Credit Score in America: It’s Higher Than You Think!
Thanks Jim. I just can’t wait to cross it.
Hey DP! I know how hard it can be to set goals (financial and personal). But keep taking a crack it and you will make some nice progress over time. Your savings rate is still very good too. I’m sure you’ll accomplish your goals! Keep it up! 🙂
My Dividend Dynasty recently posted…Mid-Year Goals
Thanks DD. I have a feeling you’re right. I just need to stick to it.
DP,
You may have not done as well as you would have liked, but you are still making progress. The loan balance went down and you started running. Two things to be proud of my man. Keep on keepin on! Sometimes you won’t see progress until you look back and see how far you’ve come.
Money Hungry recently posted…Dividend Income May 2018
Thanks MH. Making progress is the name of the game. Sometimes we sprint but sometimes we walk. Maybe we sometimes have to take a small rest. We just have to keep moving forward