How to Handle Unexpected Wealth

This month we were super excited to receive my husband’s Christmas bonus check.  Like most people, it was extremely tempting to use it toward a vacation for ourselves.  We are not like most people, though 🙂 We took out a tiny bit for a (much needed) night on the town, but put the rest toward paying off the car.  Seeing the balance drop drastically was an awesome sight!  Right now we are projected to have it paid off by March 2018.  Considering we just purchased the car in September 2017, I’d say we have achieved some kind of record.  Being frugal is paying off!

My plan is: Once the car is paid off, we can focus on my husband’s student loans.  If we put the amount we were paying monthly on the car toward the student loans instead (on top of the normal payment we are already making) we can have them paid off in 5 years.  Of course, that means 5 long years of penny pinching, but I know it will be worth it.

The next step after paying off the student loans is financial independence.  By then we will be in our late 30s, so I think this is attainable.  We already contribute to our own 401k and contribute religiously to our savings each payday.  Having the extra cash flow that we would have normally paid toward the student loans will be incredible.  I’m dreaming of that day already 🙂

 

 

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