January 2025 Extra Earnings

I will continue to track our extra income sources for 2025. In the past I referred to these as snowflakes, but will no longer do that. It's an old term that comes from paying off debt, one small snowflake at a time. Extra income generally comes from interest on our CD's and savings, and credit card rewards. 

January 2025

US Bank Rewards $44.78

USAA Refund $3.00

Chase Reward $4.64

USAA Interest $0.10

Claim Settlement $14.81

FNBO Interest $79.53

NFCU Interest $84.16

Total $231.02

YTD $231.01

Interest rates are likely to fall this year, so interest earned may fall. In the past we have been able to save around $3,000 per year through credit card rewards and interest. Let's see how we do this year.

We pay off our credit cards in full monthly (often more frequently) and do not pay interest on them. It is unwise to use credit cards for rewards if you are accruing interest on your purchases. 

2025 Financial Goals

Welcome to 2025!! Let's talk about the financial plan for the year. My husband will retire officially from the military on February 28, 2026. We have 14 months to prepare for this change. We have been planning for this in many ways for years, sending more to our retirement fund than many and keeping our expenses low. 

Our main goal is to stockpile cash to assist with the transition. Worst case scenario it's money will live on to supplement my husband's retirement pay (which is less than half of what we receive now). Best case scenario, he will find another job (which he wants to do) and we can use the cash towards buying a new vehicle to replace his 2007 Honda Ridgeline. 

We are shifting our retirement contributions. He will continue to contribute 17% of his Basic Pay to the TSP (Thrift Savings Plan). We will stop automatic contributions to our Roth IRA's and put that money into a CD paying over 4.5%. If he has a job before the 2025 contribution deadline (April 15, 2026) will send this money in for investment. We do max out both of our Roth IRAs (we are over 50), so this will result in $16,000 by year end and $18,666.66 by the retirement date. 

I am estimating on the high side that we can save an additional $45,000 by year end. On the low end maybe closer to $40,000. It's a fine line this year of stockpiling cash, but also enjoying the higher income while we have it. This cash will get funneled to CDs or money markets where we can be earning some interest. I think we are around 4% APR on our main savings account. I will keep my eye out for good offers! 

I will continue to save all interest earned and deposit credit card rewards money into our savings account. We do use credit cards and pay them off in full every two weeks, we do not pay interest on our credit cards. 

I will note mostly for myself that we ended 2024 with $51,826.53 in cash. We will approach or exceed $100,000 in cash by year end or when my husband retires. 

I have no doubt, based on years of experience, that we will make great progress on our goal. Just having a goal and working towards it means we will get close, meet it, or even exceed it. 

December Snowflakes

This is the final report of 2024 on our interest, credit card rewards and other extra income! 

NFCU Rewards $50.00

Amex Reward $55.79

Chase Reward $2.96

Amazon Rewards $14.73

USAA Subscriber Distribution $171.47

USAA Interest $0.09

FNBO Interest $78.58

NFCU Interest $81.33

Total $454.95

YTD $3,385.86

As expected, the final tally for 2024 exceeded $3000! The average amount is $282.16 per month. 

Earlier in the year, the credit card rewards money was going to the van loan. That loan is now paid off! Now all extra income is being saved. In 2025, we will be accumulating as much cash as possible as we prepare for my husband to transition out of employment with the military. 

November Snowflakes

I'm tracking money coming in this year from interest, credit card rewards, and other miscellaneous places. 

Amex Rewards $57.11

US Bank Rewards $36.36

Chase Rewards $7.76

USAA Interest $0.10

NFCU Interest $78.40

FNBO Interest $81.64

Total $261.37

YTD $2,930.91

In the past credit card rewards money was going to the van loan. That is now paid off! All extra income is being saved. In 2025, we will be accumulating as much cash as possible as we prepare for my husband to transition out of employment with the military. 

Van Loan Paid Off!

On November 22, we made the final payment on our van loan. The final payment was $654.37. I expect a little bit of interest may come back to us, since banks ask for 10 days of interest on final payments to cover any float while payment clears.

We were sending over $1,200 a month towards this loan. In the last few months we increased it by another $950. All that money is now going to be saved to prepare for my husband's retirement from the military and into civilian employment. 

We are debt free except for our mortgage. 

Our Van Loan

We purchased a new 2023 Honda Odyssey late August 2022. We paid for it with cash and a loan at 3.49% for 48 months. The principal balance started at $40,399. We have consistently made payments of much more than the minimum for just over two years and have a balance today of $5,725.96.

We currently plan to pay off this loan before the end of the year, possibly before the end of November. I have never been one to want to hold debt any longer than necessary...paying the bank interest sucks! 

The less debt we hold, the fewer expenses we have relative to our income, the more space we create for flexibility. The ability to adapt to increasing prices and inflation. The flexibility to put our money into places that earn us money. The flexibility to spend on things with meaning to us, like family vacations.

We are also about 14 months away from my husband retiring from the military. He may get another job because he likes to work, but we are also minimizing our expenses to live on the pension he will receive and our retirement savings. The less debt we are obligated to the better! 

I highly encourage anyone reading to get your house in order. Cut unnecessary expenses, establish an emergency fund, pay off debt as fast as possible. Regardless of income, we have personal responsibility to ourselves, our family and community to be a good steward of the resources given to us. 

October Snowflakes

I'm tracking money coming in this year from interest, credit card rewards, and other miscellaneous places. Reward money is going towards paying down our van loan. Each month I calculate the total and send it in towards the principal of the loan. Interest is just accumulating in our bank account to add to cash savings this year. 

Amex Rewards $38.93

Chase Rewards $19.81

Lumbee ROC $39.61

USAA Interest $0.11

NFCU Interest $80.70

FNBO Interest $103.89

Total $283.05

YTD $2,669.54

Still on track to 'earn' more than $3,000 this year. I notice that tracking this extra income from interest and rewards from credit cards brings me to a place of gratitude. It's like appreciating the cherry on top of an ice cream sundae or the cool breeze on the hot beach. May you find gratitude in your life and in your financial situation.