Our Debt to Conquer in 2012
There’s been a slight change for one of our 2012 financial goals. I know it’s only the first month, but I feel like I should adjust it to reflect a new opportunity.
As regular readers know, we have one student loan between us and its our only non-mortgage debt left. Right now we’re paying around $150/month. Per our 2012 goals, I’d like to pay down the student loan principal by at least $2,000 this year (in addition to our regular monthly payments).
We’re focusing on setting aside a percentage of any windfalls (tax refunds and work bonuses) and extra income through out the year towards paying down this debt.
Dedicated Debt Reduction Stream
To accomplish this goal means that I need to increase my take home pay. For this year I’ll be using any after tax revenue generated from My Financial Reviews to reach this goal.
I’ve mention building different income streams and this is in the same vein, but the idea here is that money is sent out almost as soon as it comes in. No temptation to spend it or save it for another goal.
It’s a new blog so it will be a challenge, but I also think it’ll be motivating to have a focus with the site and any income generated.
Keeping Tabs on My Progress
I’ll have a monthly update throughout this year so you can see if I make my goal or not. I’m hoping the public accountability will light a fire and get me to my goal sooner than planned. My expectation is that the first few months will be small changes, but I hope that by April to be making extra payments on principal that match our scheduled payments.
Thoughts on Conquering Your Debt in 2012
I’d love to hear from you about your plans. What debt do you want to conquer this year?
Photo Credit: brewbooks