Each month we will share a monthly debt update to document our progress and use it as a way to reflect and keep us accountable and motivated. We are making steady progress and things are feeling like they are on autopilot. Tax season is here, so we’ll eventually need to take a step back in order to pay our tax preparation fees. We’ll cross that bridge when it comes.
I’m finding it harder to make financial plans, which is completely opposite of my normal way of operating. But setting money aside to pay for future expenses makes me anxious because I just want to put everything toward debt immediately. So lately we pay for things when they come up instead of saving for them and having it ready in advance. I am only comfortable doing this because we have an emergency fund. Emergency funds are extremely important. If you don’t have one, start creating one now.
Let’s get into it. Below is our monthly debt update.
What We Did Well
• Budget – We did very well with sticking to the budget this month. There was even a little leftover at the end of the month which will go toward the debt.
What We Can Improve
I am in no way suggesting that we are doing this thing perfectly. We are not, because we are imperfect people. But we’ve got our heels so deep in the sand and we are extremely focused. Nothing to add here this month.
At A Glance
12% of the total debt paid.
The Breakdown
| Account | Starting Balance | Current Balance |
| Vehicle | $2,832.30* | $0 |
| Rental Property #1 | $41,455.52* | $4,799.00 |
| Rental Property #2 | $51,290.16* | $50,533.79 |
| Primary Residence | $282,163.00 | $277,047.71 |
| Total | $377,740.98 | $332,380.50 |
Focus Debt – Rental Property #1
Sometimes looking at the big picture can be discouraging, so we like to focus on one debt at a time. It makes this large debt pill just a bit easier to swallow. The current snowball is Rental Property #1. Progress chart below. The current balance is $4,799.
Wins
• Milestone – We hit the 5k mark and surpassed it on Rental Property #1. Exciting!
Our Goal Tracker!
How are you doing with your financial goals? Update us, we’d love to cheer you on!
With Intention,
Sean and Simone
Keep plugging away! Do you view the debt from your rental properties any differently than from your primary residence? In theory a mortgage is a mortgage, but I wonder if there is an emotionally element to paying down the debt on your own home as opposed to a rental.
Hi IF! Yes, we view our rental property mortgages the same as we do any other consumer debt. Might as well call them credit cards to us, minus the egregious interest rates. I think when we get to the mortgage on our primary residence that will be on another level emotionally. Thanks for reading and commenting, we appreciate you!
You did a great job paying off debt. Looks like rental #1 will be paid off soon. Planning for a little 🥳🎉? Keep this debt payoff journey a fun one! It still remember that paying off a debt felt like removing 1000 pound of burden off the shoulders.
Thanks so much, Thomas! Your timing is great because we actually just paid off rental #1 and posted the new update. The celebration was small and short, but we did take some time to appreciate the milestone. Congrats on paying off your debt, I’m sure the memory never gets old. Thanks for reading and commenting. We appreciate you!