July Update – One Year On

It’s hard to believe it has been over a year since the beginning of our journey to financial independence. In that time we have paid down $31,096.56 in debt, averaging $2,591.38 per month. This is a huge achievement for us, and at times it hasn’t been easy mentally to stay the course. There have been unexpected expenses that have popped up from time to time, but on average, we have remained on track. At the time of writing we have $22,708.94 of consumer debt remaining. This is more than forecast, but I expect this to reduce dramatically after August as my wife is currently overseas, and has around $5,000 saved for her trip, which would be quite difficult for her to spend across the time she is there. I suspect she will return with around $2,000 which will be allocated straight towards our consolidation loan.

Here are the current numbers:

Forecast July
Consolidation Loan  $ 11,970.42
Credit Card A  $ 0
Credit Card B  $ 4,425.99
Credit Card C  $ 3,688.44
Total  $ 20,084.85


Actual July
Consolidation Loan  $ 11,000.00
Credit Card A  $ 2,274.94
Credit Card B  $ 4,546.00
Credit Card C  $ 4,888.00
Total  $ 22,708.94

I decided it was better to pay down more of the consolidation loan first, even though part of me wants to close out the smaller interest free cards.

Like I said, a bit behind forecast, but any remaining cash from my wife’s trip will be allocated to debt. We still have the goal of being debt free by the end of February 2020. At this point we will need to pay down $3,244 a month, which is a bit above our average over the last year, but we’ve both agreed to tightening our spending as much as possible to make this a reality in the coming months. Here is how we are tracking visually:


July 2019


Net Worth
Our net worth increased nicely this month due to my mandatory HECS repayment being made with the lodgement of my tax return. Our combined assets are now sitting at $103,121.34, while my HECS balance was reduced by $3,702.96 resulting in a net worth of $57,209.06 including HECS, and $80,412.40 excluding HECS. How good is the effect of paying down debt and contributing to super? It makes the difference between months massive! Although we don’t feel it, we are getting wealthier every day. Of course this is best represented visually:

NW July

It’s crazy to think our net worth number has almost doubled since October 2018. This gives me great optimism for the future when we finally start purchasing parcels of assets outside of super instead of paying for stupid decisions in the past!


8 thoughts on “July Update – One Year On

  1. A great update. I love seeing a FI report that’s chasing down debt. $22000 in a year is something to be proud of. Think about how quickly that will grow in investments once you hit the $0 debt mark.
    I’m always astonished by how much of an effect just tracking spending has on increasing savings. I’ve seen our networth triple in three years just because we’ve focused on keeping track of our expenses.


    • Thanks Hank! We are almost there. It’s crazy to think that I’ve basically spent my whole adult life in debt. I can’t wait for the weight to finally be lifted in the next 6-8 months


    • Thank you! Yeap we sure are. The three cards are interest free, with the loan bearing 10.90%. One of the cards interest free period lapses in November however so the plan is to pay that off at the last possible moment before that time, or low enough that it’s insignificant


  2. Congratulations! It’s an awesome achievement to have paid down $31k in over a year and to see your net worth trending up.

    Look forward to your next update.


  3. It’s really interesting to see your progress on your debt, and kudos to you for sharing your progress vs forecast. Really keeps you honest.

    I was in a similar position – I had over $20k of debt spread across multiple credit cards before I consolidated it all into a lower cost loan, so I know how hard it is trying to repair your situation


  4. It does sure does, and I think it will be a great testament to our achievements down the road. This blog is really something I want to be able to show my future children about how you can change your circumstances.

    Can’t wait for that final payment!


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