May 15, 2009.
That’s when we’ll have the remaining $54,737 of our debt paid off according to our budget. I actually plan my budget for 5 years down the road. It’s not as crazy as you think, though, because I do a lot of copy and pasting.
In July, we sent an extra $4,000 towards our debt (one at the beginning and another at the end of the month). Since in the last 2.5 years, we’ve paid off more than half of our total debt, I think we can conceivably accomplish the goal of debt freedom by May, 2009. (Disclaimer: “debt freedom” does not include our mortgage)
However, we have many bumps in our road to freedom.
- I’m starting my Masters next month. Although my employer pays a hefty chunk of that bill, I’ll still be on the hook for about $12,000-15,000, depending on rising tuition costs, books, and timing.
- We want to birth or adopt a child soon. Adoption can cost at least $15,000 up front, and even more for international adoptions. Although we can take advantage of many federal, state and employer benefits to mostly offset the cost, it’s a major ding up front.
- We want to do some major improvements in our home this year. We want to gut our upstairs (aka the master bedroom), refinish the old bathroom and replace the ugly carpet and linoleum in the kitchen/dining room with hardwood. Luckily our fathers agreed to lead the effort, but we won’t get the materials for free. Oh, and we’ll be paying them for their efforts anyway.
- We’re selling the Malibu, but we’ll eventually need another car. The plan is to just run the Pontiac into the ground, but with 126,000 miles on it already, who knows how fast that ground is coming at us. We also have my Ridgeline, but it’s not a practical everyday commuting vehicle.
- Stacie wants to pursue advanced education. This probably won’t be another masters or a PhD. Instead, she’s looking at certifications or additional coursework to gain more skills in her field.
- Our 5/1 interest-only mortgage resets in 27 months. We may need or want to refinance the home, and that usually costs money. The decision is still at least 1.5 years away, but time flies.
- Stuff happens.Nope, you can’t predict what God, or your fellow man, will send your way.
So there’s a number of things that can affect our goal date, but now that I’m publishing this date, we have a goal. We know what to plan against when things arise.
Do you have a goal? Do you have a date for that goal?