Can this really be? We’re finally DEBT FREE!!!

we're finally debt free!!!

At 7:30 Friday morning, with one eye still shut, I logged into our bank account to check how much I’d been paid. Last week, I had calculated that as long as my take home pay was over $1,300, we’d have enough to finally pay off our debt once and for all.

To my surprise, our account had grown by $1,487.74! I double checked my math just to be sure we’d have enough to cover all our bills before transferring the final lump sum to our Home Equity Line of Credit. $1,113.51 later and we are FINALLY debt free!!!

HELOC - June 15

Now technically, we aren’t fully debt free yet – we still have:

  • A mortgage of $385,231.19
  • An appliance loan of $1,665.34 (will be done in 10 months)
  • A vehicle loan of $18,450 (will be done in about 3 years)

I know in the Personal Finance community, new vehicles (especially financed ones) are typically seen as really really bad financial decisions. And while I totally get that point of view, I still stand by our decision to purchase new. I can’t say I’d always make the same decision in the future but if you’re interested in the circumstances and reasons that led to us buying brand new, head on over here.

It’s so awesome to see that red HELOC line finally at the x axis!!!

Balance Sheet - June 15

So what now?

Now that we’re “debt free”, we can finally start focusing on our Baby Fund! In an earlier post, I had calculated how much we needed to have saved if I were to take a maternity leave of one year – my rough calculations show that we’ll need  $14,051.52. With about 6.5 months to go, this works out to be $2,161.77 per month, or ~$540.44 per week. Although we paid off more than that amount of debt in only four months, I do have a feeling that reaching this amount is going to be a stretch because:

  1. We don’t have a tax refund to look forward to (which was over $4,000 combined for the both of us)
  2. I am not working any more overtime
  3. I am having to take time off work for appointments and because I haven’t been feeling well

In any case, we’re definitely up for the challenge!

10 weeks, 1 day

Source: http://www.babycenter.com/6_your-pregnancy-10-weeks_1099.bc

We had our first actual prenatal appointment this morning, and although it’s supposedly usually too early to detect the heartbeat using the Doppler given that it’s my first pregnancy, our Doctor was able to detect the faint but very rapid heartbeat! Incredible how reassuring a tiny sound can be huh?

After our prenatal, Mr. Unchained had a physical, during which I headed down to the lab for some bloodworks. It’s crazy how queasy I get just drawing blood – all I could think was if I can’t tolerate this, how am I going to survive childbirth?!

In 2 weeks, I have another ultrasound and then another prenatal visit and then assuming all goes well, we can finally start announcing!

 

 

Mrs. Unchained 55

8 Comments

  1. Congrats, great work.

    Can I suggest you reach over and knock out that appliance loan before the baby comes? Its not very big.

    • You’re right! It wouldn’t be very difficult to do so financially – it’s just one of those things I’d have to figure out how to do since it’s a pre-authorized payment. It was through Future Shop at the time, but now that they’ve gone bankrupt it’s through some other company and I haven’t bothered to figure out how to even go online to check our statements!

  2. Ah! I love it when a paycheck comes in higher then expected.
    Congratulations on paying off your HELOC! That’s the big one at our house, but it will probably be another 18 months before we’re done with that one.
    Best of luck with baby and baby fund! What an exciting time. I hope you start to feel better. Maybe your sleep will reverse it’s self and you’ll be wide awake for the second trimester? 😆

    • YES!!! It’s always such an exciting day when paychecks are higher than what we budgeted for!
      I have heard stories of women with Idiopathic Hypersomnia (my sleep disorder) who think they’re cured during pregnancy!! The sleepiness does return post-pregnancy but it would be nothing short of a miracle to be “cured” even temporarily!! Just a few more weeks until 2nd trimester…. 😀

  3. awesome! congrats. I am with you on the new car thing. I changed my view on this. I buy a modest, reliable car new and keep it until it dies. I have an 11 year old Camry that is still going strong and will probably get another 10 years with a little luck. That is very cost effective in my view. I agree with George, pay off the appliance bill asap. I have had horrible experiences with appliance reliability. You don’t want to be paying for something that has the potential to die at any minute, just my two cents. Congratulations, it is a great feeling to be free from the debt shackles. Hard work does pay off.

    -Brian
    Pluggingandplaying recently posted…Stock-Picking: Final Candidate List for June 2016My Profile

    • Thanks for chiming in Brian! Like you, we bought new but I do hope to “drive it to the ground”, so to speak. While I see the financial aspect behind buying used and I know the depreciation, etc., when you’re buying new, most of the time, you’re buying totally blind! You have no idea how the previous owner drove and maintained their car which can be a very costly thing to discover.

      My first car, I bought 4 years old. In less than a year, we had to replace the transmission! Luckily for me, it was still covered under the Powertrain warranty but that could have been a seriously disastrous situation!

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