This is now the second month that I’ve paid less than my target bi-monthly payment amount. As I mentioned in this post, I have a mid-month payment that is required by my servicer, but I also have an end-of-month surplus payment that I use to pay extra on my loan. My end-of-month target payment has been $1,000. So far this year, I’ve managed to hit that target, until recently. I’ve been having a long standing battle with overspending my budgeted allowance. It’s a battle that I’ve clearly been losing.
Before, it was easy to take some dollars here and there from my small checking account reserve to cover any shortfalls. But now, that account is almost exhausted. I don’t want to touch my savings (emergency fund), so I’ve had to reduce my loan payments. Last month I paid only $700 extra. This month, I paid only $546 extra. This is, of course, slowing down my debt repayment, which I am unhappy about. I’m frustrated with myself for having to make these lower payments. On the other hand, maybe what I’ve allotted for my allowance is unrealistic and I should expect to make lower payments from here on out…
A while back, in this post, I wrote about my desire to start identifying possible business ideas for my future self.
It’s important for women to have a second way to make money as it becomes very difficult to get hired or stay employed in our 50’s and beyond. With lifespans increasing, and healthcare cost skyrocketing, we need to have a business of our own (large or small) to gain income in our 50’s and 60’s (or earlier!). Right now I’m in the brainstorming phase. I want to come up with 3-5 ‘viable’ (non-absurd) ideas and then lay the groundwork to evaluate them over the coming months.
These past few days I’ve been all excited because I’ve identified another candidate for a future small business. It would blend a few of my natural interests and would involve some measure of creativity. I’ve added it to my list of ideas. There are a few different paths that I could take with this business, but they all would require me to be out of debt first in order to have the best shot at success.. Sigh. Another reason to hate the 2.5 years of student loan purgatory that I have left. Damn these debt shackles! *Angrily waves fist in air* Regardless, I’ve been daydreaming about the things I could do and they money I could make.
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“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW Archives)
Double Debt Single Woman 
It really sucks not to be able to hit those big targets. My experience is I can do it for a while — even a year or more — but eventually there’s some fatigue. I wonder if it would help to set a lower target, perhaps $800, and see if you can hit *that*, rather than aiming for $1000 and ending up with $546.
In any case, what really matters here is that the balance is still going down 🙂 Seems like you’ll hit the 50s by the end of the year? And every payment you make reduces the interest you pay on the rest….
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Yeah, maybe it is debt repayment fatigue. I think I’ll try that approach. Thanks, C!
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You have been hitting it hard for so long now that you are bound to have some months or maybe a year or so to just relax a little bit on the debt pay down. You are doing great but sometimes you need a breather. It is really great you are able to pay that amount really. That is a lot of money. Imagine the people who don’t even try. You go!
Yes, you are also right about not being tempted to pull from the emergency fund because it is sitting there all pretty, ready and waiting. Sure, $1000 a month extra was nice but so is $300 or $700 sometimes. I mean gosh look how far you have come. Please don’t stress over it.
This line right here: “It’s important for women to have a second way to make money as it becomes very difficult to get hired or stay employed in our 50’s and beyond.” I am now 46 and it such a shock to me (time just creeps up on you). I have been on my job for 16 years and the way this company is moving,we are pretty much training our overseas partners our jobs. I need to do something else, increase my 401K, pay off this mortgage, increase my emergency fund. On another note at least women are becoming more aware on the amount of money we may need in the future by using online calculators and reading blogs like this.
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Thanks for the encouragement, Nicole. 🙂
Ugh, having to train your own replacement. Companies are so harsh. 😦 Yeah, but sadly, it’s not uncommon anymore.
My job is rather safe from offshoring, but, like most jobs in the US, it can be done by contractors. So even those of us who have full-time ‘offshoring resistant’ jobs can sometimes feel the pressure that way. No one is safe! Sigh.
Yes, I say any single person, woman or man, MUST find at least one other source of income by their 50’s. Social security may or may not be there. Costs of good and services, medical care in particular, are outpacing wage growth. And most people, myself included, don’t have nearly enough saved for retirement.
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Preach!
Don’t forget ageing or sick parents. Why did no one warn us of all this real life!
And You will have plenty for retirement. Why? Because you are clearing your debt and once completed you will have freedom.
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Very curious to read what these business ideas are. One source of income forever is definitely not enough anymore.
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They are just daydreams at this point. One of them involves the good old standby of real estate, but I’m nowhere near being able deal with that with my finances in shambles. That will be in the more distant future.
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Here’s to dreaming!
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You will do it. I have faith in you. And I know – I’ve been trying to think of other ways of earning money for myself as well. For what it’s worth, the way you have been paying off your debt shows perseverence and strength and you will then apply that to whatever business idea you ultimately switch to. You will succeed.
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Awww. Thanks, Terri. 🙂
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