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Debt Free by Next Week

August 24th, 2013 at 10:22 am

Last week I paid off one of three of my credit cards and hope to pay off the other two by Tuesday or Wednesday. So far it feels great, but at the same time I feel like I'm tiptoeing around death. I guess the feeling of becoming debt free again is surreal and I can't believe it.

I also opened up several accounts to transfer money in to. A teen checking and savings account for my daughter at Capital One 360. She will learn to manage her own money and be responsible for saving. She's no stranger to finance because I've always spoken to her about money or taught her what NOT to do and why.

I will keep an emergency savings account with my local bank (where my checking account is also parked) and the rest of the money will be transferred to an online savings account at a decent interest rate until I decide what I want to do.

I also set up a "mad money" savings account for myself with Capital One 360. I know me and rather have a small account for impulse purchases. I do get urges every now and then, but I want to save for them now instead of just buying it.

The good thing about Capital One 360 is I can have multiple accounts. My daughter needs braces, I want to put aside money for car repairs (not that I would need it now, my car is only 2 years old) for new tires or unexpected repairs.

My paycheck can cover all of my expenses for the month, so I can save one entire paycheck a month which is a blessing.

I also want to give money as a gift to friends and family who have helped us during some rough times. The saying is true: there is more happiness in giving than there is in receiving.

4 Responses to “Debt Free by Next Week”

  1. North Georgia Gal Says:

    Way to Go!!!

  2. ceejay74 Says:

    OMG, that's awesome!! If you don't already, don't forget to set aside 10% or more of your income for retirement -- a Vanguard Roth IRA would be ideal.

  3. snafu Says:

    Kudos for clearing CC # 1 and being ready to clear the next 2 by mid week. Wonderful to be able to manage income using one pay for month-to-month expense and the 2nd for anticipated costs.

    I think it's brilliant to get teen daughter started on an account to manage her savings and taking small steps forward learning to manage money and make age appropriate financial decisions. There's nothing like 'real life' experience and some 'skin in the game' for our kids to learn about the decision making process.

  4. imarunner Says:

    thanks everyone. i'm really excited.

    ceejay74 - that was actually a question i wrote to suze orman about yesterday. i have a 401k and a traditional roth ira (rollover from old 401k) and wanted to know should i convert the traditional and pay the tax or just open up a roth ira. i like the idea of the roth ira because it will be tax free when i'm ready to withdraw. looks like that's what i should do, open a roth ira. truthfully i don't know what percentage is going into my 401K, but i know i'm saving 10% of my income anyway, just not in a retirement vehicle. will check this out and increase my 401k contribution.

    thanks for the suggestion.

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