Thursday, April 05, 2007

My favorite snack is crunching numbers

I had a lot of free time on my hands today, and so I played around with our finances. The awesome news is that we are on track to be debt-free in under two years.

Now, when I say debt-free, I obviously don't count the mortgage...for a couple of reasons. One is that people our age generally don't pay off their houses. The second is the tax benefits, and the third is that you get the principle back when you sell. So our current "debt" is only cars, student loans, and our heat pump (we don't carry credit card balances). But that's still pretty cool. I also calculated that without changing Matt's current 401K investment rate, he'll be a millionaire by age 59. I'm jealous, because I don't have a 401K at the moment. (And no, there is no point in me getting an IRA, because we haven't maxed out his 401K yet). But someday, I'll beat him :-) Though I do wonder how much a million is going to be worth in 2059.

And we did it without "economic outpatient care."

There's a sign on the way home from work advertising a number to call for information on a "VAN POO." Hehehe.


Matt Green said...

I calculated the other day I have 14 months until my car is fully paid off and I am financially independent. This thought is extremely exciting, glad to hear you guys are getting close to that as well.

Courtney said...

We should have a party!

kim said...

We used our tax refund to pay off my school loans, and let me tell you, being debt-free feels GREAT! (Plus, having zero debt will make it sooooo much easier for us to get a great mortgage. :) Best of luck to you guys!!! I bet you're counting down the months! :)

What is economic outpatient care?

Courtney said...

"Economic outpatient care" is mom and dad bailing out their adult kids (i.e. post-college, in this case) in the form of paying off credit card debt, down payments, loans, etc. It's from this article.

Courtney said...

Oh, and I did want to clarify one thing...technically our heat pump purchase is "debt" in that it's not paid off yet, but we only did that because we got 12 months with no payments and no interest, and we have the money set aside each month to make payments anyways and pay it off in 11 months. We did this with our living room furniture too.