This past December, we got some awesome financial news. The short version is that some money my grandfather left me had become available. The long version involves 3 children and 6 grandchildren. I don’t think I’ve ever had a windfall before, so I was pretty excited.
We’d been on track to pay off the car this April, but this would cover everything and a bit more besides!
Today, the check came in the mail and we deposited it tonight. The money won’t be available until Where’s My Money Going? Month (I mean February) so I thought I’d write about it now so as not to interrupt the theme. But you know, when we make the last payment I just might not be able to help myself!
How is this windfall going to change our financial plan? Well, it’s speeding up our debt snowball.
We’ll take the money leftover after the payoff and put it in the account we’re using to pay for Micah’s college expenses directly (no new loans!). He has a full-tuition scholarship but has to pay certain college fees as long as he continues to write his dissertation. It’ll give the account a nice little bump.
Next, we’ll take the money we’d designated for the car through April and put it in another account we’re using for student loan payoff. We’d already have been doing it after May, but this will mean more money total. In terms of a debt snowball, this is the FINAL step, we have our biggest snowball yet and we’re not afraid to use it. I’m excited, because by conservative estimate we should be putting in at least $750/month minimum. I’m thinking more towards $1k.
Our goal is to live entirely off my full-time income and use blog income, consulting income, and Micah’s stipend all towards the loans (and a bit toward retirement too). Minimum of $750, but in a good month we may be able to put in twice that (depending on consulting work, which I can’t do as much of now that I’m working full-time).
Besides putting another debt behind us, I’m excited that we get to begin running the car into the ground. We’ll take great care of her, I hope she’ll last us another 5-7 years. What I mean is that we plan to keep this car until she starts to break down too often. Neither of us is “into” cars, so we don’t care what we drive as long as it’s clean and runs. It would be a smart idea to put some of the extra money towards our next car, but I hope that will be a long time off.