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Drumroll Please…

Posted by on Sep 17, 2009 | 12 comments

A while ago I asked what I should do with the additional money I’ll be receiving with my new raise at the end of September. Sadly, no one chose Option F! (Refresher: that option was “Put it all in my Clothing Fund and spend it frivolously.” Rats!). A lot of you had fantastic suggestions, and of course I wanted to use all of them. Finally, after doing a little basic math, I have come to a decision.

My decisions is to ….

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Increase 401(k) & Debt Payment!

Those who suggested the closest were: Carrie, Stacking Pennies, Erin A, Julie K, and Serendipity. Thanks to all though!

I decided to put 3% of my salary into my 401(k) each month, which is about $100 of pre-taxed dollars. (My employer already contributes 3% regardless of what I do, so 6% will be added monthly.)

About $100 of the raise will be added to my take home pay and back into my monthly budget (we’ll see for sure; could be more or less depending on taxes). This $100 will then beef up my debt payment to around $600. I decided to split it this way because I feel my savings is sufficient to hold me over during this time. I cannot wait to start SAVING that $600 instead!

Here’s my excel chart of all of my payments. May 2010 has become my new favorite future month. ;)

debt

Eight payments left until I am debt-free!

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  • http://www.FabulouslyBroke.com FB @ FabulouslyBroke.com

    Good call.

    I almost chose F but then I thought the better of it, being a PF blogger

  • http://www.krystalatwork.com krystalatwork

    Wow only 8 more payments!! That’s awesome, I’m so excited for you. :)

  • http://payingup.blogspot.com Julie K

    Nice MPP! I think I need to figure out how many payments I have left. It seems like there have been so many pf ladies who have paid off their cc debt in the past couple weeks…it definitely motivates me!!

  • http://thelostgoat.blogspot.com The Lost Goat

    Grats! It must be nice to see the light at the end of the tunnel like that!

  • http://linkbee.com/savingforhome SavingDiva

    Congrats on the raise! Good luck paying down your debt.

  • http://www.smallstepsforbigchange.wordpress.com SS4BC

    Man, 8 seems so small. Great choice MPP! =)

  • http://investingnewbie.wordpress.com Rachelle

    Good for you!! You should totally have a countdown to May 2010 and have a “Finally Debt Free Bash.”

  • Carrie

    Hooray!!!!!!!!!! You go! You need to throw youself a party when that debt is paid off! :) :) What an awesome accomplishment that will be!!!

  • http://endmeetend.blogspot.com/ Mrs. Smith @Making ends meet in the Queen City

    That’s great, you’ll have it paid off in no time!
    p.s.I love the spreadsheet :)

  • http://jessiesmoney.blogspot.com/ Jessie

    That is so exciting!!! Congratulations on being so close to debt free!

  • http://www.beatingdebt.org BDO

    Great decision! Keep up the good work! You are so close!

  • http://savernotaspender.blogspot.com/ Serendipity

    Thanks for the little shoutout. I am so glad you can almost taste the debt freedom. It will be here before you know it. :)