In January, I listed my resolutions for the coming year. They happened to match the Smart Cookies Financial Guidebook to Success resolutions, since that’s what I was reading at the time. I admired those smart cookies for their hard work and creative way of solving their problems. So, since it’s now June, here’s my mid year status report.
1. Reduce Debt – I have reduced my debt by about 7,000 since January 1. I had an outstanding balance on my car of $2,786 and almost $4,000 in taxes due. I still have my personal loan (Citi Financial) and a family loan, but if I continue on this track, I’ll have paid off the Citi Financial loan by December 2010. The personal family loan will be paid off next January.
2. Build a nest egg – In February, I began to achieve this goal by opening and participating in my company’s 401(K) program. A simple 5% of each paycheck (78.44) is going into my 401(k), completely matched by my employer. Surprisingly, I’ve already contributed over $700, matched by ACVA = $1400 in retirement already! And, that’s in only five months.
3. Increase Credit Rating – In all honesty, my credit score plummented in February when the “unlawful” repossession was marked on my credit. It dropped my score into the “VERY HIGH RISK” danger zone. I immediately disputed it and heard nothing back for months. Last week, I noticed that the account has been closed, the balance dropped, and my score went up 38 points. Also carrying a low-interest credit card and paying off the balance each month increased my score another 16 points in the last two months! I’m still in the “HIGH RISK” category but it IS steadily going up.
4. Advancement at work – Still working on this one. However, my boss has mentioned on a couple of occasions how much I’ve improved and how great I’ve done this past year. We’ll see the results of that effort in my review later this month. If all goes “according to plan”, I’ll have earned a 5% raise and a 10% bonus. Which, in turn, will help to pay off that loan!
So, as you can see, I’m doing very well. I’m not perfect and I’ve still splurged here and there. But, I am sticking to my long term goal of financial freedom this year. Maybe, next summer I can treat myself and my boyfriend to a relaxing beach vacation somewhere tropical, since I’ll be completely debt-free!
