It seems I disappeared for a moment. No need to worry… I have been doing homework, relaxing, and just enjoying my summer. I did get everything done from my earlier to-do list and will update my new to-do list tomorrow morning.
Tomorrow is payday for me! As a teacher, I got to choose whether I wanted all my checks given to me during the 9 months I worked or if I wanted them spread out throughout 12 months. Because I knew I would not have the discipline to take a bit away from the checks in 9 months and put aside for the summer, I chose to have them dispersed the entire year. This coming paycheck will be a bit bigger because I will receive a stipend for attending a couple workshops. I am unsure whether it will be $100 or $200, but either way, it is extra money! The money will go into the savings account we have been building for when I go on maternity leave.
Another great thing about payday is that we will be making quite a few payments towards our debt. All the debt payments come out from my paycheck, while most other bills and regular items come from Hubs’ paychecks. (He gets paid every other week, while I get paid once a month.) After July’s payment to the CC bill goes through, we only have 2 more months left of that one! I can’t wait! I had been paying about $300 a month for a while, but decided to push it up to $350 so we could be done with it before the baby gets here! It will be so nice to have that extra money when the baby comes.
My ultimate goal will be to use that money to open a Roth IRA for me and one for Hubs. We won’t max them out at this point, but we need to get those started. I think we would put $50 into each account a month. Then we would probably up the amount we are putting into savings by about $75 and open a college savings account for the baby with about $25 a month. Finally we would snowball the $150 that’s left into the smallest student loan. Our car loan is 0% interest, which is why I am not in too much of a hurry to get it paid off. We have a little over 2 years left on that, and I would *LOVE* to have the students loans paid off around the time the car loan got paid off. I don’t know if it’s possible, but a girl can dream.
The thought of being 100% debt free in 2 years is amazing… except for the fact that we wouldn’t be. My grad school will be over in about 2 years, and those loans will kick in. (I already make teeny payments towards the interest already, though.) I wish I could have gone through grad school without taking out loans, but I have been taking out the smallest amount possible each semester. Also, we plan to replace my car when the other car loan is finished. I don’t think it will be a brand new car (or SUV), but it will be new to me and will have more space than my little Corolla. I keep praying that my 10 year old car just keeps going for another 2 years. If not, then we will just have to face that when it happens. I also realize we would not be able to pay for the car with cash, but would have to take out another loan. 😦
I also know that we will have hospital bills coming in once the baby gets here. I will have to set up payment plans for those, but we will be able to use the $150-$200 a month from having the CC paid off to put towards those instead of snowballing to the student loan if need be. I also know this little one will bring us a big tax deduction, so hopefully we will be able to use that money to pay off more hospital bills. The bills never quit coming, do they? I guess I am just happy that I am somewhat prepared for all of this, rather than going in blindly with no savings or idea of what is to come.
Any tips on how to adjust a budget when a baby gets here? That is the one thing I am not too sure about.