I don’t usually do this, but….I’d like to send a shout out to Terri at Chasing Simple Dreams. Of all the people who have commented on my blog, she’s been one of my biggest supporters at 29 comments! The first one was back in December of 2013! Terri if you’re reading this, thank you so much!!!! It means a lot to me that a stranger would continue to leave words of support for all this time.

The second part of this post is about friendships. I’m 32 now and have gone through a couple phases of my life where I felt alone. Why? Here’s a list:

• Religion – See that mostly here in Texas, a lot of people network through church. Mention that I used to be a Jehovah’s Witness and the conversation and don’t go to church at all usually ends pretty quickly.
• Sexual Orientation – Called the f word by some jerk in high school close to 5 years before I came out to anyone. Even then there are straight couples who probably see me as a sinner. Or family members that would stop talking to me if they knew I was gay.
• Ethnicity – Not black or white enough, the two main groups of people in the school I went to. This extends to society in general.
• Socioeconomic class – Disabled father and mother who worked a difficult job without a fancy title or pay
• Car I drive – You drive a slow FWD car? What the heck man?? Sidenote – I bought the new car for me, not to impress others.
• Conversationally – Being shy or not feeling like I have anything to discuss
• College – Dude, what college did you go to? One you’ve never heard of. Did you play sports? Nope. What fraternity were you in? None, I went to a commuter school.
• Drinking – As I get older I realize my tolerance for alcohol is on the low-ish side. I get a buzz after 1 drink and drunk on the 2nd one. Frozen margaritas are a bit offender..
• Sports – See the college / professional league game last night? Nope I don’t follow sports. Ohh well that sucks.
• Hobbies – What do you like to do for fun man? Listen to Personal Finance podcasts, read car forums and workout. Ohhh that’s lame.
• Family – Seeing guys profiles on dating apps where they mention their friends and family are their life. Also a shit ton of instagram pictures with them looking super photogenic and on fancy trips every week practically. My family is 1500 miles away and I can go 5 days without socializing with a single human being.

Some slight exaggeration here, but you get the idea. At the root I never felt good enough for people to like me. My self-esteem was low, my POV was always me vs them.

How do I deal with it?

• I’ve accepted the past is the past. My efforts are best spent on things I do have control over.
• Having good people around. This has made my life more rich and fulfilling. I want to experience that more and grow in the process.
• Bouncing back – Sometimes I have bad days, but I still put myself out there. If people don’t want to talk to me because of the color of my skin, where I’m from or any of the other ridiculous reasons they can come up with that’s on them, not on me.
• Being assertive – Focusing on what I want in life and using my time and energy toward that.
• Seeing my progress – Some people stay in the same town and never leave. Great if that’s how you roll but if you’re miserable like I was, that doesn’t really fly.
• Modeling – YouTube videos on people who dealt with this are priceless. Helps to break the pattern pretty darn easily.

Last but not least….Get the *fuck* off social media unless you’re marketing something or that’s your career. Don’t let it run or ruin your life.  A good portion of the people on there are pretentious, narcissistic or funding their lifestyles on debt. The others work their asses off (a few of my friends work 60-80 hrs a week), sacrifice in other areas (say 6 roommates in a NYC apartment, or no car), or have help either from their spouse or parents. Focus on deep, meaningful relationships with a small number of people. I’m working on that number, but a total of 10 feels about right.

Great minds discuss ideas; average minds discuss events; small minds discuss people.

This is a famous quote by Eleanor Roosevelt I often thing about. In a few years many events that pop up in the current day won’t matter. I’m talking about things a celebrity said or did to drum up publicity. Aside from the mindless entertainment component, who really cares what happened on <insert reality show here>. I have a habit of writing these late at night so I apologize for any typos or ramblings. I like living the good life and aside from money and health, quality connections are critical. 🙂

This is the budget I’ve put together. Not disclosing my income here, but I do have monthly HSA contributions, 6% of my gross going to my Roth 401k, plus a 3% match and a 2% employer retirement contribution. I like Zero based budgets because every dollar gets a name. At the same time they can be scary because there is no money left over.

A couple points:

• Student loan is still being chipped away at. In January it was $12,845, now it’s $8,515. Tax return, half my bonus and extra money each month went toward it.
• I don’t spend $300 a month on entertainment. When I go out with friends I can often get by spending $20. At most $40 in one sitting. There is a line between groceries and entertainment. $300 seemed like a number that would cover a more outgoing month.
• This is a budget based on cashflow, not leveraging the usage of any high interest credit cards. Also avoiding the high interest rate minimum payment game.
• Raises – Possibly getting one in the coming months.
• Bonuses – This doesn’t factor them into account. The last one however was pretty substantial. I’m not banking on getting another one
• I don’t own a home, I rent. My lease rate is effective until April 2017. I’m fine with not owning, though I may upgrade to a slightly fancier place next year.
• Car Fuel – Variable – My car gets 22mpg city / 30hwy. So let’s assume an average of 24mpg. Premium fuel at Costco today was $2.09/gallon. At the normal gas stations it’s close to $2.40. I drive roughly 12000 mi per yr. 12000/24 = 500 gallons a year. 500*2.09=$1,045 1045/12 = $87. I fully expect fuel costs to rise so the $150 number sounds more like the old “normal”.
• Car maintenance = not on here. I have oil changes and tire rotations for the next 3 years / 39k miles.
• Clothing – not on here. I do buy new (inexpensive) clothes from time to time but that can also be part of the entertainment / grocery budget.
• I’m still looking at ways to make an extra $100+ a week without going nuts. I e-mailed someone about helping to post Real Estate listings on Craigslist but didn’t get a reply. There are lots of other options, the more I think about it CL is probably one of the worst places to do this.
• I have cut back buying lunch at work considerably. I estimate a $200/mo savings.
• Not actually paying car payment yet. 2nd week of May, so banking the money in the meantime.

Holy mother trucker!!! It’s been 4 years. My original name for the blog : “ONE MAN’S MISSION TO GET RID OF 45159.35 OF DEBT“. Kind of tacky perhaps, but it gets the message across.

So the purpose of this blog was to focus on the original debt I had on April 2012, none of the subsequent debt. So I write this post with that focus.

So with that said, as was said on the Suze Orman Show. So Suzy how am I doing?!?!!

Credit Cards: ~$241 balance. I’m moving away from credit card usage for many of my day to day expenses. The interest rates are high and I usually spend more than I want to. My debit card is more convenient, keeps me more accountable and helps to ensure my monthly spending stays more in check.

Navient:
On 4/8/2012:

Today 4/4/2016:

So since I started $33,459.67 has gone toward principal. Or from the total balance to begin with…$38,254.66. That was more than my entire take-home pay up until I was 29. It’s been a rough journey. As I get closer to the finish line I have decided that debt freedom isn’t the goal. The goal is to live a rich life that I enjoy. Pinching pennies isn’t the only way to make financial progress. Earning more, learning new skills, making small tweaks over time. Those things add up.

Someone commented last month that most people don’t pay attention to what they spend money on. I agree with this statement wholeheartedly, because when you pay attention you decide what to prioritize in your life. Not your bills. You spend where you want and cut back on the rest.

$8,500. Not counting interest, paying my currently monthly minimum of $453 leaves about is about 19 months away. The reality though…. Even with my $544 car note I will still have some extra to set aside on my loan. If I get a raise in a few months that money will go toward the loan.

Every night I watch videos on Udemy on web development. This year I am learning how to perform in a series of areas. I’m looking to develop my side hustle game. $100/week would cover most of my car payments. $250/wk covers that and the student loan payment. A little extra money can go a long way.

Lastly but not least, my car payment isn’t due for another month. I’m building a buffer in the meantime. By the time it’s due I will have an extra month’s payment set aside. I like this trend and maybe I’ll increase it. The APR is 1.9% or ~$600/yr in interest so not too extreme. My student loan at the current balance is $362/yr using 4.25% interest.

Some people have big debts at 10-18% interest and payments out of whack proportional to their income. I am blessed to be where I am now, but say I did have an 18% interest rate. On the SL it’d be $1532 and $5,760 on the car loan. That would be a whopping $7292  a year vs my $962 or 758% more. I know some don’t believe in credit but if you’re gonna play the game with the bank make sure your number is high enough so you don’t get ripped off. And minimize credit card debt because it will take forever to get out from up under it.

And the other bits…
401k: $14,921
Roth IRA: $3,843
Total Retirement: $18,764

It took me a while to make this decision.

I traded in my 2014 Altima 2.5SL for a 2016 Maxima SV. I have no remorse. I have no kids, not in a relationship. The last guy I dated wasn’t really even dating and he said he can’t pursue his relationship with God and act on his homosexuality. Blah. After seeing all the costs of home ownership it will be about 3 years before I can afford a house that I really like as opposed to a starter home that would need to be completely gutted. My rent is cheap at $800/mo and locked in until next year.

Do I feel hypocritical? Sure. I’m writing a blog about getting out of debt but now I’m getting into more debt.

Why did I get rid of the car I had?

1. The old one was slow. I really wanted a car that had some punch to it when I would floor it. Not a delay and hope it goes somewhere. After driving a 4 cylinder for 6 years before I thought I’d get used to it.
2. Black. Never ever. Again. Swirl marks, 5 minutes after I’d get it washed I’d see spots on it. No garage to put it in. Pollen galore.
3. Value. I knew I didn’t want to keep it long term and the longer I kept it the more it would depreciate.
4. Deals – Got a decent deal considering MSRP and financing at 1.9%.
5. I can afford it on my current salary. My payment is about 16% of my take home pay not including any bonuses. The old one was 7.5%…
6. The last point and this is a big one. *Motivation* – I need a big enough why to get me going. I have watched friends buy homes, 3 sets get engaged, go on trips, fancy restaurants, do a lot of traveling. I’m sure I will do more of that. I just haven’t lit the spark in my soul to want more. Paying the student loan off just felt like a chore. With little to show for it other than the paper.

   I rationalized doing nothing because I was comfortable. Comfortable people don’t try to learn new skills and make money on the side. They don’t have the desire to do their best job at work. They don’t network because they see themselves staying at a company for life or at least many many years. It’s time to get un-comfortable and start earning some extra money. Some people say when they have kids it helps inspire them to get on track. It’s a similar experience for me.

I can still budget, make my own meals, cut back in other areas I see fit.I will still be making student loan payments. Maybe not as much as a mortgage payment might be but the total is still going down. We’re looking at about 20 months till it’s gone paying just the minimums. I may start a new blog. More to come but it’s bedtime…

Navient $10,282
Car Loan – $11,454
Total Debt: $21,736

401k – $13,575
Roth IRA -$3,588
Total Retirement: $17,163

Making progress. I asked Scott Alan Turner a question and it got mentioned in Episode 51 of the Financial  Rock Star show. I changed the number of allowances on my W4 from 0 to 2 after listening to this episode. What does that mean? $82 more in my bank account with each paycheck. That makes it easier to drop a G each month on my debts.

12 Months ago. My student loan balance was $12k more, my car note was $3,632 more.

I had a thought the other day. Paying over 3x as much on my student loan each month as my car note. Most people have a car note way higher than I do. $280/mo doesn’t kill me. Gas is ridiculously inexpensive right now, around $1.60/gallon here.

My retirement accounts have been going up as a result of some upward momentum in the stock market and an employer match.

This week I had a phone interview with a recruiter. She approached me on LinkedIn. I knew nothing about the job, but long story short I wasn’t qualified for the position. Probably 2-3 times the amount of work and a week less of vacation time. Being a millennial I’m big on work / life balance. This company only had one good review and the other 7 were horrible. It’s been making me think about my future. Working for myself over the long term may be the best shot I have at long term wealth.

In the meantime, having little or no debt is really liberating in the grand scheme of things. So that will continue being my primary goal over

I don’t mind working hard but I’m not going backward for no reason.

This was completely unscripted and basically me talking to myself about getting out of debt. If it were scripted I would not use the word um 50 billion times.

Debt Free 32 – Podcast 0

One of the benefits offered by my company is a certain percentage of my gross salary is vested toward retirement. This is separate from the 3% company match. This year that number was about $1100. This boosts my 401k balance to over $12k.

I’m shifting more and more toward a retirement mindset and less from becoming debt free as I get closer to paying Navient off.

These are my loose plans and I honestly have no clue what the future holds for my career / earnings potential, living / relationship. numbers I came up with on my current salary, which for arguments sake say it’s close to the national average.

2017: $1000/mo -> +$12k -> $24,000
2018: $1200/mo -> +$14.4k -> $38,400
2019: $1500/mo (maxing out 401k) -> $56,400 (car will be paid off)
2020: $2000/mo -> $80,400
2021: $2000/mo – > $104,400
2022: $2000/mo -> $128,400
2023: $2000/mo -> 152,400 (the year I turn 40)
2024: $2000/mo -> $176,400
2025: $2000/mo -> $200,400
2026: $2000/mo -> $224,400 (age 43)

Using the 2020 numbers as an example with a future value of money calculator…

$80,400, adding $2,000 per month at age 37 @ 10% interest and continuing for 14 years. That makes me a millionaire and able to retire by age 51 assuming my income stays what it is and my cost of living doesn’t suddenly spike. If I take that $1,051,771 and don’t add anything to it, in 10 more years at 10% I’ll have $2,847,188 at 61. Is $2k a month a lot of money? To me in 2016 dollars on my current income yes. In 4 years assuming I get a 4% raise each year? Maybe not.

I don’t know what the future holds, but I do know this. If you want to have money when you’re older you need to start young. Maybe that means not buying the Mercedes or BMW but a more modest car instead. Or renting for a while and not sinking a ton of money into a house. I’m really seeing the light on how the poor stay poor and the rich get richer.

Last but not least, here’s another big kicker. There are people making $100k+/yr now who could easily speed this whole process up considerably and still have a decent life.

It’s late as I write this, but I just hope someone thinks about this before making a huge purchase that makes then a total slave to a job, bank or other financing company.

Student Loan Progress Month 46 – Navient $11,124

Car Loan Progress:

401k update:

401k balance update Feb 15, 2016

Betterment:

Brokerage Roth IRA:

Brokerage account. my apple stock is down whoa. Glad I’m diversified.

Got my tax refund back. It was a good chunk of cash. Split the money up about 50% between two debts, my student loan and credit card payment that has been lingering. Credit card should be paid off again come my next paycheck. Between last month and this month I’ve paid about $1721 down on my balance.

I officially owe *less* on my student loan than my car. It’s a good feeling. Now I’m basically starting a race. Race to the finish line. Can I pay off the student loan before 12/31/2016? I think so, god willing. I could stop my 401k contributions and def hit the mark but not giving up my match.

Betterment charges a higher fee if I don’t deposit a min of $100/mo to my Roth so just doing the minimum for now. Not pulling out of the market in a panic, not going 100% into bonds. I do think it will get worse before it gets better. I am optimistic it will bounce back though. Quantitative Easing on student loan debts is a topic that has come up in political debates. I’m against bailouts and for people accepting the consequences of their own actions.

More layoffs at my company. There were at least 15 people I have worked with personally in the last 3 months who were let go. Makes me think loyalty to a company is dead. While you’re there you try to be a linchpin and indispensable. However if your work doesn’t result in a promotion or even a decent raise it may be time to look elsewhere.

The idea of having a safe secure job is dead. Skills are everything. We are moving toward a society when a full time employer with great benefits is going the way of the dinosaur. People running their own businesses can allocate more money toward their retirement, in some cases are free to make their own schedules and will often work more hours than a typical 9 to 5 er. There are of course risks, some crash and burn miserably.

As I get closer to being debt free I think about more and more about the concept of f’you money. I see people driving brand new Porsche, Mercedes-Benz and Lexus cars. They buy fancy homes and put expensive items inside those homes. Then they work 60-80 hours a week to pay for these things.

Jacob Lund Fisker author of Early Retirement Extreme sums up this situation fairly well.

In real life, the prisoners of Plato’s Cave are those who are prisoners or slaves to their wages and their culture.  A wage slave is a wage earner who is entirely dependent on their wages.  While the wage slave is free to leave the current job, he is not free to leave the job market altogether and he can likely not imagine the possibility of doing so.  He is still entirely focused on the wall.

The wall shows other people not as who they are, but as what they own.  There goes a man in his new sports car, what is not seen is that the car is bought on credit and the man is stressed because he is having trouble making the payments.

Wage slaves have jobs where they can go and spend their most productive hours writing high powered memos so they can be more productive, while other people spend their time ignoring memos so they can be more productive too… … This endless working and playing is called “making a living”, yet people are so busy “making a living” that they have no time for living.  A wage slave is a person who is not only economically bound by mortgages, loans, and other obligations, but is also mentally bound by an inability to perceive that there are other options available. Like the prisoners in Plato’s cave.  Their chains are not physicals; the chains are mental, which in some sense makes them worse because it turns the prisoners into their own prison wardens.

Is spending the most productive years of your life chained to the job market to collect a lot of rarely used stuff that gathers dust in the closet or takes up space in junkyards a wise choice?  Were you really born just to die, leaving a large pile of discarded consumer goods? I realize that not wanting a house full of things makes me look weird and even “unpatriotic”.  After all, more is better and who does not want to be better?   But perhaps conformity is not the only way to live.  In fact, by taking the other end of the bargain, saving as much as other people are spending on wants, it is possible to retire and live on invested savings after just 5 years of full time work.  Rather than increasing the amount of work to acquire more stuff, reducing this superficial need reduces the amount of necessary work.  It is possible to reduce the amount of work all the way down to zero: financial independence.  Indeed, playing the shadow game for five years provides a permanent way out of the cave!  Alternatively it is also possible to return to the cave for a few months every year to earn money for the next adventure out of the cave.

I see people with fancy titles big homes and hair turning white in their 30s.  That and looking stressed out all the time. Is it really worth it?
Is all this stuff we buy to impress people we don’t really like worth it?
Have we not learned from the overconsumption of the Baby Boomers & Generation X?  Is lifestyle inflation something we’re just come to accept as the baseline?

I don’t want to be a slave to money or things that will just lose value over time. Not every one gets it, but a few do. It’s a movement, and it’s growing. 🙂