TMMO June 2008 Update: So long, student loan…

It is time to rejoice, for my dear husband’s student loan is vanquished at last!

I never even set eyes on our $1200 stimulus check because Chris snagged it from the mailbox while I was at work and deposited it to our shared checking account before I got home. When the check posted the next day, it was immediately sent right back out of the account along with an additional $200 to pay off the last of his student loan.

Easy come, easy go, but I do wish I could have held the check for a minute or two while dancing happily around the house mumbling, “My precccccccccciooooooooooooooouuuuuuuuus!” to myself.

Well, thanks much, GDub. I know that as tax-paying American citizens we will wind up paying for your profligate ways and extravagant borrowing from other nations in the future, but for now I am glad to use your handouts to reduce our debt tally. Someone else will have to stimulate the economy, though. 😛

We are almost six full months into 2008, and we are now about halfway through our Debt Snowball with $24,196 paid off and just our second mortgage left before we are debt-free except for our primary mortgage. At this point a strict Ramsey-ite would continue to work on the snowball and immediately tackle the second mortgage, but we are going to stick with our strategy of putting that off until we complete Baby Steps 3 (fully fund emergency savings) and 4 (save 15% of gross income for retirement).

After doing the math, I’m just not willing to be out of the stock market with our Roth IRAs from January 2008-June 2009, the amount of time it would take us to complete our full Debt Snowball the traditional way. In fact, I’m not even willing to wait until early 2009 to make catch up contributions to our 2008 Roths since we would be missing out on some of the cheapest mutual fund prices in the past few years.

Ramsey claims that women have a so-called security gland that makes them want to have a huge heap of money sitting in plain old savings for emergencies while men want their money to be active and doing something to earn them more money. Apparently I have a combination security/action gland, because I want a huge heap of money in my retirement account actively earning me money via mutual funds. Honestly, stopping my Roth contributions for five months gave me more indigestion and anxiety than any other part of the Total Money Makeover plan.

We are also getting some of our friends on the Dave Ramsey bandwagon. We signed up for a local Financial Peace University session starting next month and running through the end of September, and paid for some friends who could use a no-nonsense, comprehensive personal finance primer to go with us: a newlywed couple who will be house hunting and starting a family soon and a friend whose preventable history of serious financial missteps has been completely maddening to watch for a logic-oriented INTJ like me.

My only concern is that the course coordinators will be annoyingly pushy about the Bible references in the materials or feel compelled to try to convert the irreverent Asian chick with no religious preference on her dog tags and her spiritual-but-not-religious husband. (I have a semi-regular Jehovah’s Witness who swings by on Saturday mornings every month to hand me pamphlets and attempt to talk me into submission. I am tempted to join the Unitarian church in Orlando as a Taoist/Buddhist just to say I have an affiliation.) Ramsey is very open about his Christianity in his radio show and in his books, but he limits himself to specific quotes from the Bible that support his common-sense approach to personal finance without getting preachy or implying that one needs to be a baptized holy roller in order to win with money.

Baby
Step
Amount
Target
Complete
Actions
1. $1000 to start emergency fund
$1000
1/25/08
1/25/08
Contributed
a combination of wedding gift money, personal savings, and bonus
commissions to a shared savings account earning 2.75% APY
2. Pay off all debt (except the home) using a Debt Snowball
$49612
2/1/10
2008
Debt Snowball


2009
Debt Snowball
  • Maggie Visa
$600
9/1/07
9/1/07
Made
two $300 payments to clear the balance, then retired card to safe.
  • Discover (Leftover wedding expenses)
$862
1/10/08
1/12/08
Paid
balance in full in January 2008; card still actively used for gasoline
ONLY. Balance paid in full each month going forward.
  • Chris Visa
$1000
1/15/08
1/15/08
Paid
balance in full in January 2008. Card retired to safe.
  • Amex (travel, Ikea couches…)
$1944
1/21/08
1/20/08
Paid
statement balance in full in January 2008. Card still actively used for
recurring utility bills, but will be paid in full each month going
forward.
  • HELOC (new A/C in 6/07)
$4200
1/23/08
1/23/08
Chris
and I both cut off federal income tax withholding from 9/07 – 12/07
after calculating that we were both overpaying. The excess money in our
paychecks was used to make aggressive $1000 payments on the HELOC every
month.
  • Maggie Car Loan
$3490
5/1/08
5/7/08
Paid
extra $1500 from 2007 tax refund and $500 from personal checking
account on 4/17/08. Paid final $559 in May 2008. I already made a large
extra payment of $1500 on the car soon after the initial purchase.
  • Chris Student Loan
$12000
6/1/08
6/17/08
Added
another $1200 to the monthly payment from the economic stimulus check
on 6/17/08. Chris paid the remaining balance out of his own checking
account. Chris was able to contribute an additional $2100 on top of his
originally-budgeted payments these past few months.
  • 2nd Mortgage
$25516
12/1/09
Remaining
amount: $25310

Putting this one on hold until after the $10,000 emergency savings
account and 2008 Roth IRAs are fully funded. Regular minimum payments
of $205 through 12/2008, then payments of $1941 from 1/2009 until
12/2009

3. Three to six months of expenses in savings
$10000
12/1/08
Six
deposits of $1607/month and one deposit of $458
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
accounts
15% of
gross income
12/1/08
(ongoing)
Fully
retroactively fund both household Roth IRAs for 2008 at $5000/each from
6/08-12/08. Reinstate monthly Roth IRA contributions for 2009 going
forward @ $416.67/month each from 1/2009. Increase 401(k) contribution
to 5% (currently at 4%).
5. College funding for children
TBD
…Er…No
kids yet. Need to see if an education savings account can be started
without actual offspring.
6. Pay off home early
$135880
3/1/16
Research
refinance into 15 year fixed rate mortgage and/or set up extra
principal only payments of $1400/month to pay off home within 6 years.
7. Build wealth by investing
TBD

Free P90X Spreadsheet Log

A few months ago reader Scott Rhamy sent me a link to a P90X workout log spreadsheet he had enhanced and ported over to Google Docs from the original Excel sheet created by Damon which is no longer online.

I haven’t had the chance to look it over very well until now, but since I just loaded up the P90X Chest and Back workout tonight for some variety, I decided to revisit the spreadsheet.

P90X Spreadsheet

After filling in some of my information and digging around a bit, I have to admit that this is one handy spreadsheet. It will track your reps and weights on resistance days and workout completion/heart rate on cardio and flexibility days. There is also a sheet to log your starting and ending fit test scores as well as fields to link to your progress photos on the Picasa online photo gallery. A body fat calculator based on caliper measurements and a circumference measurement table are also included.

For those of you following the P90X nutrition plan, there is also a Diet worksheet that allows you to log the number of portions you eat each day in the permitted food groups. The logs are divided into three phases with the recommended portion numbers adjusted for each phase. Your calorie level is also calculated for you based on your starting weight.

There are no pretty graphs for the more visually-oriented of you, but as a whole, this is a great spreadsheet for logging your P90X workouts, and best of all–it’s free!

To use the spreadsheet, you will need to click on the File button on the upper left and either click “Copy Spreadsheet” to save it under a new name in your own Google Docs account, or “Export” > “.XLS” to save it to your own computer in Excel format.

Check it out!

Scott Rhamy’s Google Docs P90X Spreadsheet