The Next Six Years

I’ve always been known for having a 100 year plan. When I was a kid, I’d dream out the rest of my life in great detail. Now that I’m staunchly in my mid twenties, I don’t look so far in the future. Life is a lot messier than my eight year old self gave it credit for.

But I can plan for some things. Right now, my financial life is a bit of a mess. But it’s not going to be that way forever. Over the next six years, I’m going to get debt free. Right in time to turn 30.

2023

Sylvia’s training will be complete. And that $400/month can be used elsewhere. While it might be a better short term strategy to use it towards debt, since all of my debt is low interest, I’ll be investing the money instead. Those four years I’ll be investing, assuming a 6 percent return on interest, I’ll have an additional $21,674.52 in investments.

2025

My credit card will be paid off. Again, since my car note and my student loan are low interest debt, I’ll be putting the $186 I’ve spent on paying this down towards investing as well. By 2027, I’ll have $4,746.02 from this account, again, assuming a 6 percent interest rate.

2026

My car is paid off! While it might seem more practical to use the money I pay on the car towards investments, I’m planning on owning this beast for a while, and I want to get it’s paint color changed, since I HATE the green that it’s in and would prefer a bright teal blue. So I’ll be saving money that I was using on my car payment to pay for a paint job. On top of that, I’ll be able to add probably another $1,000 in investments.

2027

Happy thirtieth birthday to me! And goodbye student loans. I’ll be completely debt free by the time I’m thirty. And I’ll have a pretty sizable chunk of change socked away. As of this writing, I have $18,060 in investments. Assuming I don’t contribute anything for the next six years (and this is highly unlikely), I’ll have $25,618.46. Add this to the $27,420 I’ll have invested as I pay off debt, and I’ll be sitting on a pretty $53,000.

Overall, I’m happy with my strategy

Not quite the $100,000 that I’d originally set my goals on before I sent my life spiraling sideways, but definitely nothing to sneeze at. And that’s assuming that I don’t invest anything in 2022, which is obviously not the case.

I’d love to say that I can come up with another $50,000 to have $100,000 by the time I’m 30, but looking at my career right now, the prospects aren’t looking likely. And that’s okay.

I’d rather feel settled and secure in my plan right now and then re-evaluate when I hit 30. My FI number is around $1,000,000, and I’m still a far cry away from that. But I’m on track to hit that number when I’m 67. And that’s only if I keep contributing just 15 percent to my 401(k). The goal is to obviously increase this. And I want to be financially independent by the time I’m in my 40s, but right now we’re going to be gung ho towards crushing debt and reallocating resources.

I’m choosing to focus on investing instead of slamming through my debt because the couple thousand I’d save on interest is nothing compared to the compound interest I’d gain by investing.

So here’s to honoring my little me and creating a six year plan to pay off all by debt, just in time for my 30th birthday.

Posted in Uncategorized

Moriah Joy

Moriah Chace founded this site in 2018 to narrate the money journey she and her husband were on. After their divorce, she pivoted and is now tackling living well on a low income budget. She is currently the editor at Poorer than You. And she has words in Live Better, Deal Taker, and EcoFrugals. As part time barista and a full time coffee addict, she currently attends UTA for a master's in Civil Engineering and wants to change the world one high speed train at a time.

The Next Six Years

2023

2025

2026

2027

Overall, I’m happy with my strategy

Moriah Joy

Other posts you may like:

In 2021, I’m Reclaiming a Remarkable Life

Hello World, Come Meet The New Me

A Reset on my Blog: We’re Embracing Fun

33 Comments

Leave a ReplyCancel reply

Get In Touch!

Disclaimer

About Me