September Update

Another month of progress behind us. We are getting very close to being debt free now, and let me tell you looking back on all my posts it is a very satisfying feeling. We continued to make good inroads in September, paying down more than our monthly goal of $3,400.

Forecast	September
Consolidation Loan	$ 6,370.42
Credit Card A	$ 0
Credit Card B	$ 4,164.42
Credit Card C	$ 3,542.37
Total	$ 14,077.21

 

Actual	September
Consolidation Loan	$ 9,290.61
Credit Card A	$ 0
Credit Card B	$ 4,276.00
Credit Card C	$ 1,090.00
Total	$ 14,606.61

As you can see we are still behind our new forecast by $529.40, but way ahead of our original forecast to the tune of $1,519.99. You might be asking yourself why we have shifted our focus to Credit Card C over the consolidation loan. That is a good question! The interest free period for that card lapses in November, so I wanted to make sure it was polished off before that time. The card will be paid off and closed next month, and we will shift our focus back to the consolidation loan. By my calculations the consolidation loan will be paid off by the end of December, which will be a great achievement as it is our last interest bearing debt. Visuals below:

 

 

I may receive a $3,000 windfall in the next month or two, which will accelerate our progress, but there is some uncertainty around this amount so I have not planned it into our forecasts. If we are to receive the windfall it will simply bring our progress forward one month. As we get closer to the target we are becoming more disciplined, and motivated to pay more than our $3,400 per month goal. This month we managed to pay down $3,552.39, and though the extra $152.39 may not seem like a whole lot, I think it is a great to constantly push ourselves to do more. This gives me great hope for next year, with a scheduled pay increase, I will receive an extra $500 after tax from February that we can utilise!

It is extremely motivating to be coming towards the end of our journey out of debt, where we can set some real financial goals. We will be starting with saving 3 months of expenses, and then aiming to save/invest $4000 per month. I cannot wait for that to begin! It feels like an age since I stumbled across the FIRE movement, and it has been frustrating to a degree, reading constantly about different investment ideologies and strategies without being able to dip our toes in.
Net Worth
We continue to make good progress from a net worth perspective. Our combined super balances are up to $104,836.47, the highest ever after the market stabilising and a few more mandatory contributions. As a result our net worth including HECS now sits at $67,026.52 and excluding HECS at $90,229.86, which is a swing of around +$7k from last month. It is great to see this figure approach $100k. I would hazard a guess that by the end of November, without any substantial market corrections, we should be very close to hitting that milestone! Visuals below:

 

See you next month!