Paying for debt blows, but finding new ways to keep motivated doesn’t :) And this morning I came across a BRILLIANT way to help put things in perspective! (Or perhaps give you a heart attack, I’m not sure which)
It comes from a good blogging friend of mine, Matt Jabs, and what he does is simple – he calculates just how much interest he’s paying on his debt EVERY SINGLE DAY! All his mortgage interest, credit cards, loans, everything. And want to know what it’s costing him? A whopping $40.13! And he gets squat from it in return. How’s that for motivation? Knowing you’re giving up $XX every single day until you pay it all off? Freakin’ crazy mang – puts a whole new realization of what debt’s doing to ya. (and yeah I know, I typed “mang” instead of “man” – I can be ghetto like that)
Now since I’m projecting Matt’s debt all over, it would only be fair that I do the same ;) We don’t have credit card debt or any loanage (thank God), but we certainly have mortgages up the posterior! And they come in at a pricey $350k at that.
So if we extract the total monthly interest we’re paying ($1,800), and then divide it by 30 days, we’re paying……drum roll please….$60 every day for our debt! WOW. That’s seriously incredible to see it laid out like that, and it’s not even including principal! I honestly thought we’d hover around $30-$40 a day just like Senor Jabs, but this REALLY puts things into perspective. $60 every day evaporating into thin air – unbelievable.
I highly recommend breaking it down yourself and seeing how it affects you. And if you’re in the mood, dropping it in the comments and letting it out for all to see. Perhaps it would feel good? ;) Either way I think knowing this # could really help step up your get-rid-of-debt gameplan.
And if this interests you as much as it does me, check out Matt’s “How much your debt costs” spreadsheet! I’m going now to add it to my best of templates/spreadsheets because I think this is some really really good stuff. You know I love me some tracking!
PS: Some of my favorite tools:
|Personal Capital (FREE) -- If you’re looking for a robust financial tracker, Personal Capital is the way to go! They’re like Mint, but on steroids and have much better tools for investment and net worth tracking. // Full review|
|Digit (FREE) -- A super easy (and automated) way to save. Every day Digit analyzes your income and expenses and will push money aside for you any time it sees extra sitting there. I've saved over $4,000 myself using them so far! // Full review|
|Acorns -- Having trouble finding money to invest? Check out Acorns – they round up all your transactions to the nearest $1.00 and drops the difference into an investment portfolio for you. Easy way to start investing! // Full review|