When getting out of debt, there are two things that you can do: increase your income or decrease your expenses. Well, I will be doing both come April.
If you remember back a few posts, I mentioned that my wife and I live in different states during the week. In that post, I also mentioned that I had applied for two positions, one in Baltimore and the other in Washington DC. Well, I got the call yesterday that they want to hire me in Washington. This is big news for us both emotionally and financially.
In terms of our finances, this new job will increase our income by approximately $4,000. I will be doing the same job but since I will now work in Washington, I get a cost-of-living pay increase. Another great thing about the new job is that we will no longer have to pay rent in Pennsylvania. The new job will help us cut our expenses by $4,800!
Since we have been living on less than we make, ALL of these new earnings and savings will be put towards debt. That is an $8,800 new shovel! It will feel great knowing that we will be able to pay things off almost twice as fast.
Oh, remember when I told you why I wasn’t going to sell my car? I’ve been thinking and I may be willing to sell my car when I start this new job. I will be taking the train to work everyday because we live right next to the station. I was thinking that it may be beneficial to buy a cheaper car (with cash) and just drive that the mile to the train station. It will free up an additional $200 a month for debt repayment and eliminate the car debt all together. Not to mention the savings on insurance!
Well, I know there wasn’t any tips in this article, but I thought it would be nice to share with you our financial outlook for the coming months. I think it will make things a lot less stressful in our house and hopefully you will see some larger payoffs at the end of the month!
Have a great weekend!