Driving Towards FIRE

Debt Free and FIRE Update: July 2020

Small progress is still positive progress, right?

It’s the end of July which marks the official end of the budget for July and now we turn our attention to our August goals. For July, we stuck to the budget successfully, but we had overages in food and pet expenses. This month we had takeout a couple times and Blue’s Vet visit and surgery pushed our numbers just a bit. Our other category “miscellaneous” also exceeded our budget just a bit too. The good news is, we didn’t spend the max in all other categories and that allowed us to cover the overages in food, pet, & misc expenses. For July, our savings rate exceeded 60%! This money went directly into cash reserve savings in our high yielding savings accounts.

Numbers as of 7/31/2020:

> $845.87 Debt Paid in July.
> $169,502.66 Total Debt Paid (21 months)
> $74,466.32 Total Debt Remaining

Yesterday we learned about the state of our economy and while shocking, it’s not surprising. For Q2, America’s Gross Domestic Product fell 32.9%. That percentage highlights the fact that this is the sharpest decline over the past 2 centuries is such a short period of time. By comparison, the worst percentage drop by quarter in 2008 was 8.4% and 10% drop in 1958.

What does this mean?

It’s the Total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. It functions as a comprehensive scorecard of a given country’s economic health.  Given the state of our economy, we’ve paused most aggressive debt payoff plans to invest completely in our cash savings. Our plan has shifted to survive today so we can thrive in the future.

Who else has shifted their focus to an increased cash savings?

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