The graph below summarizes my short term debt progress across all of my individual loans. The blue columns represent my debt totals for individual loans as of February 1, 2014, and the green columns represent my debt totals for individual loans as of February 28, 2014. I have one less green column than I did in January because early in the month I paid off GL Student Loan 1, and now I have set my sights on my ACS Student Loan. Looking at the debt progress in this format really emphasizes how paying more than the minimum has a HUGE impact on your debt decrease.
The bar graph below represents the long term and short term progress I have made on my overall debt. The grey bar represents my original total debt amount, the blue bar is my total debt one month ago, and the green bar shows how much debt I have today!
Having ONE target loan will increase the rate at which you can pay off your debt and decrease the amount of money you will pay towards interest to help you become debt free sooner!
Because I am paying above the minimum monthly requirement on my focal loan the percentage being paid towards interest is very small—less than 2% of my total payment!! Whereas 43% of the total amount I put towards the loans I am making minimum payments on is going towards interest—that is almost half of my total payment!! The chart below gives you a visual representation of these numbers.
Knowing Where your Income Goes
The pie chart below summarizes how I spent the money I made in February. Sixty-Eight Percent of my income went towards debt—that includes my minimum monthly payments and extra cash flow, and 32% went towards my living expenses (food, rent, etc.). I actually intended to have another category here for savings and put 15% of my income into it, but I goofed on my debt payments and ended up with no money left over. Luckily my oversight didn’t result in an overdraft, but it did keep me on my toes and result in an embarrassing amount of time spent on my calculator this morning. To correct my error, I plan on increasing my goal percentage for my savings fund and decreasing my percentage of income allocated to my cash flow towards debt payoff in March.
Roadblocks: I didn’t have any expensive roadblocks this month, but I did make an addition mistake that temporarily postponed my plan to save money for a wedding because this cute boy asked me to marry him. The fund for love will have to wait for its debut in March
February Dollar Hollaaass: No extra income to report this month–I have really felt like a slacker in this department lately, but my current income is helping me reach my goals right now and I’ve been a little busy enjoying life and visitors.