Goal Update: Monies

This time two years ago, after I had moved to Thailand, I was feeling a lack of money.  Putting deposits on a place and money into moving after two years in America was quite rough.  Plus, circumstances had left me in some dire straights.  These issues were quickly resolved, but it was a hard time.

Moving to Moscow, I was a bit worried that the lifestyle that I had in Thailand would be at risk, that the city would be so much more expensive and that I would be unable to save anything.  I've been pleasantly surprised at how I'm doing, though.

One recent goal was getting out of debt.

During my time in Cambodia, I was able to save enough money to pay off all of my undergraduate loans before I started my graduate degree.  This was a huge boon to my financial situation, even if I did come back to America and struggle with the lack of credit history.

But, then I went back to school, and I took out loans to pay for it.  This is 2012/2013, for my Master's Degree in Library Science.

Here's what I took out:
$20,500 - Interest Rate: 6.7%
$8,000 - Interest Rate: 7.9%
$10,250 - Interest Rate: 5.5%
$4,000 - Interest Rate: 7.9%

School is fucking expensive.

But, I am happy to say that by the end of this year, this debt will be gone.  In less than 5 years, it will be completely finished, and my life will be debt free once again.  I had hoped that I would be debt free by the age of 30, but I will end up missing it by a few months.

It's taken a lot of work to get here, and many incentives for myself.  Plus, I had help in the form of family for a sizeable chunk of this.  I live a relatively frugal life, and this is one step for my next financial goals.  With the cooking that I've been doing, more frugality is happening.  Plus, I track my expenses quite religiously, to make sure that I know where my money is going.

I've been doing some things to provide me with incentives to reach this goal.

1. The Bees

I started this in Thailand, after I read something on a blog about a woman coloring in circles whenever she was able to put a few hundred dollars into her loan.  I liked the idea of putting in whatever you can and celebrating that amount.  If I was in Thailand still, it may be more pertinent, but I came into some money when I left the school, and moving wasn't nearly as expensive as it has been in the past, given the school that I'm coming to.

Each little honeycomb represents just $100.  This picture is currently accurate, so when I've finished paying off my loans, I will have a fully colored picture.  I'm very excited about this.  My net worth is getting higher by the minute!

2. The socks.

In order for me to get more of my money invested in paying off these loans, Pierre and I thought of an incentive in the form of something I love: socks.  I wanted to buy many socks before I came, but he dissuaded me of the notion that that was a good use of money.

However, now I get a pair of socks whenever I pay $1000 dollars to my loans.  This is a very useful incentive for me.  Many of them are in the wash, but here are two of my recent success stories.

3. Net Worth.

A softer incentive is the net worth that is calculated on my Mint.com account.  It counts up all my assets, subtracts all my debts, and gives me a number.  Just a few years ago, it was negative.  My debts far surpassed my assets, which I found very upsetting.  But now, I'm not only up to a positive number, but every day gets a little bit better.

School is super expensive, and this moment in time will see me working on the newest years of my 30s to make some good money and put it in useful places.  I will be an adult yet.