February is here! Time sure does fly by a lot faster these days. I wanted to drop in on the blog and share our financial goal for 2018.
What is our goal? Simple…get out of debt and finish baby step 2 in 2018. This is a bit of a stretch goal, and you may think we are crazy…because we need to pay off $99,766 in 2018. We are hoping to build on 2017 which was a big year for us as well, we paid off $50K and finally broke below $100K.
As of Jan 1 here was our Debt Balance:
- Student Loans – $81,696
- Other Debt (Car+CC Consolidation Loan) – $18,070
- Total Debt – $99,766 [down from $165K+ at the highest point that I was tracking]
This sounds crazy but here is our plan for 2018.
- Maintain debt snowball at $5000 per month = $60,000
- Spring Work Bonus to Debt = $20,000
- Cash out stock options = $10,000
- Side Hustle Business Growth = $10,000
The $5000 per month is really the tricky part of this plan. It comes from about $2800 of our normal income through careful budgeting and $2200 from side hustle income which is variable but hopefully will go up throughout the year. Basically we need our side hustle to generate profit of $2200 x 12 + $10,000 = $36,400 after taxes. Pray for us! This is a big jump from 2017.
Hilary is really investing a lot of time into her T-shirt business on Amazon Merch and Etsy and we a counting on this to take off this year.
Budgeting is going to need to be on point this year…we haven’t cut our spending as much as we could. We haven’t sacrificed as much as we could. I expect this will be a theme this year. As Dave says:
“You’ll only truly sacrifice when you passionately believe in the outcome.”
Stay tuned for updates this year! Tell us what you think of our goal…are we crazy? What are your goals for 2018?