Looking back it's easy for me to feel like I actually accomplished something good in February! Finances were finally put in order, debt is getting paid off, and an actual plan is in place!!
Total Income $11,715.71
Total Spending $11,026.08
Excess (deficit) $ 689.63
After paying all monthly bills and a few 'extras' (licensing fees for the ATV, parts for the pickup, a little bit of blow money for each of us, etc) there was actually money still left over! The best part is that the amount left over is almost as much as a regular paycheck!
Popular thought would be to take that extra $689 and put it towards our debt snowball. Well, I would like to be popular but prefer security over popularity right now! I simply advanced those dollars to March and began paying those bills. I scheduled the 'new' payment amounts based on the debt snowball calculation done earlier. It's amazing how much of a psychological job it is to stick to a plan!
Payday is this week and almost everything is already taken care of. Will I increase the debt snowball now?? Probably not. I'm likely to build a small cushion on top of the Baby Emergency Fund of $1000 already sitting in an online bank. If I'm still ahead of the game in April, then the snowball will reap the rewards.
It's funny about making larger than minimum payments towards debt. The "buyers remorse" I feel after hitting the submit button to make the payment is almost always gone before the confirmation page even loads! I feel anxious just at the thought of 'maybe just this time we can charge ~whatever~and it'll be different. ' I still get thoughts of, "Yes, I need this now...and if I wanted to save $15/month for 10 months so I can pay with cash I could...but I don't have to wait 10 months." Amazing that a princess like me can actually delay gratification!
If this keeps up, we can have our debt paid off much sooner than we had planned. I believe in our common goal. I believe in our ability to work together. I believe we are wonderful Stewards of God's Word and He is good.
Monday, March 8, 2010
Sunday, February 28, 2010
Getting ready for Autopsy
And I'm looking forward to dissection our crazy month of earning and spending. We have the money (or we had the money) and we followed through with the plan we had established. Now with March here I can rewrite the budget, maybe tweak is a better term. Tonight and Tomorrow I will get all the numbers together and see where we struggled and where we can improve.
Life is finally beginning to take a shape that I am satisfied with and am comfortable with. Should be clear sailing from here on out!!
Life is finally beginning to take a shape that I am satisfied with and am comfortable with. Should be clear sailing from here on out!!
Friday, February 26, 2010
Over half way there!
After making the regular monthly payments on our debts plus using our checks from the state and federal government we are 52% complete (not including our student loan balances). How nice it is to see things moving along!
The second column is the amount that was paid towards each of the debts. Some of the amounts are different from the original post just because they had to be updated after all the previous months payments posted. When I checked our online savings account it still had just over $10.00 so I just deposited enough to get to the $1000 mark.
When Hubby and I were looking at the debt repayment plan for the remainder of our debt he was shocked to see that we pay out $439.20 in debt repayment. "That's half a paycheck" he commented.
We then talked about how even though we paid off over $8000 our monthly payments hadn't changed much because only two cards with minimum payments were paid off. The rest was debt we'd just been ignoring...bad I know.
The other thing is that even if we had been making minimum payments, the whole idea of the debt snowball is that when one debt is paid you put that payment towards the next smallest debt. It does allow you a little wiggle room if you get into a pinch though.
As things stand now if we only continue to make the $439.20 our debt will be paid off in December 2011. It's comforting knowing that we will have $3896.71 left at tax time next year. We definitely won't receive the payments we did this year, but we should easily have that much. So realistically we will have our debts paid off February 2011at the latest! If I could choke out an extra $200/month we would only owe $1800...ugh, sometimes I just can't slow my brain down sometimes.
Imagine what we could do with $425/month!! I better not...my imagination would up and take me away and I have things to do this weekend!!
| Savings | 1000.00 | 989.14 |
| Lawyer | 2,480.32 | 2480.32 |
| NSB | 863.30 | 863.30 |
| Taxes | 1,711.81 | 1711.81 |
| Coop | 391.29 | 391.29 |
| CC 1 | 430.57 | 430.57 |
| CC 2 | 454.32 | 15.00 |
| CC 3 | 787.78 | 765.37 |
| CC 4 | 687.34 | 21.00 |
| CC 5 | 2,195.60 | 78.00 |
| Furniture Card | 2,489.04 | 117.00 |
| Vehicle Loan | 2,866.51 | 284.40 |
The second column is the amount that was paid towards each of the debts. Some of the amounts are different from the original post just because they had to be updated after all the previous months payments posted. When I checked our online savings account it still had just over $10.00 so I just deposited enough to get to the $1000 mark.
When Hubby and I were looking at the debt repayment plan for the remainder of our debt he was shocked to see that we pay out $439.20 in debt repayment. "That's half a paycheck" he commented.
We then talked about how even though we paid off over $8000 our monthly payments hadn't changed much because only two cards with minimum payments were paid off. The rest was debt we'd just been ignoring...bad I know.
The other thing is that even if we had been making minimum payments, the whole idea of the debt snowball is that when one debt is paid you put that payment towards the next smallest debt. It does allow you a little wiggle room if you get into a pinch though.
As things stand now if we only continue to make the $439.20 our debt will be paid off in December 2011. It's comforting knowing that we will have $3896.71 left at tax time next year. We definitely won't receive the payments we did this year, but we should easily have that much. So realistically we will have our debts paid off February 2011at the latest! If I could choke out an extra $200/month we would only owe $1800...ugh, sometimes I just can't slow my brain down sometimes.
Imagine what we could do with $425/month!! I better not...my imagination would up and take me away and I have things to do this weekend!!
Tuesday, February 16, 2010
A good Map
I've already spent 51% of the state check. I paid off my credit card and started the emergency fund savings account. The federal money should be here on Friday so I'm going to have a GREAT weekend paying off debt!!
I almost booked a vacation yesterday...I sooooo deserve one! Hubby talked me out of it wanting to stick to the original debt repayment plan :(
I'm so glad the Baby Steps are written like a good map. There is even an "expanded baby steps" to break down each step into even smaller steps (for those of us who seem to be climbing the ladder of success ever so slowly).
Tomorrow is Ash Wednesday. We attend a small church that is out in the middle of nowhere and has less than 200 members. For such a small congregation it never ceases to amaze me what a diverse group we are. Although the members range from poverty stricken to beyond wealthy, we really are a family...feuding included. For the most part it is a very healthful place for me. I look forward to the Lenten season each year. Hearing God's word more than once a week brings me such peace.
There's another reason I would like to live in a larger city. I could likely attend a church service of my denomination everyday. I just am so much more at peace at church (even when the boys are crawling over, under, and around the pew).
I almost booked a vacation yesterday...I sooooo deserve one! Hubby talked me out of it wanting to stick to the original debt repayment plan :(
I'm so glad the Baby Steps are written like a good map. There is even an "expanded baby steps" to break down each step into even smaller steps (for those of us who seem to be climbing the ladder of success ever so slowly).
Tomorrow is Ash Wednesday. We attend a small church that is out in the middle of nowhere and has less than 200 members. For such a small congregation it never ceases to amaze me what a diverse group we are. Although the members range from poverty stricken to beyond wealthy, we really are a family...feuding included. For the most part it is a very healthful place for me. I look forward to the Lenten season each year. Hearing God's word more than once a week brings me such peace.
There's another reason I would like to live in a larger city. I could likely attend a church service of my denomination everyday. I just am so much more at peace at church (even when the boys are crawling over, under, and around the pew).
Saturday, February 13, 2010
YAY!!
We received our state check today...aaahhhhhhhh. Can you feel the relief? All I'm going to do is deposit $1000 into an online savings account and let the rest sit until the federal check shows up. I think taking one step at a time as opposed to doing everything at once will be good for me. This way it's not going to feel like nothing was done. A succession of activities will be more psychologically rewarding.
I do wonder a little if I should only deposit $500 in to the emergency fund to quicken the pace a little...it only changes the 'finish line' by one month. I highly doubt that paying the extra $500 now would make me feel better than the anxiety shorting our savings account would cause. I guess that answers my question doesn't it?!
I am very happy that the federal payment will come at the same time (or close enough) to payday. Essentially I will have new decisions to make as far as who will get what money at payday as most of the credit cards slated for payment with the second paycheck will be paid already. The same amount of money will be going out each month, just where the money will be going is going to change.
We will be paying out $450/month for 15 months to complete Baby Step Two. Although we could hurry it up by using the third paycheck of the month he will receive twice this year, that money will be used for property taxes, home owners insurance, and Christmas shopping.
Time for a new budget again. Most of it I know by heart, I just need it in writing to actually show my brain that we'll be okay! I'll let you know how it works out!
I do wonder a little if I should only deposit $500 in to the emergency fund to quicken the pace a little...it only changes the 'finish line' by one month. I highly doubt that paying the extra $500 now would make me feel better than the anxiety shorting our savings account would cause. I guess that answers my question doesn't it?!
I am very happy that the federal payment will come at the same time (or close enough) to payday. Essentially I will have new decisions to make as far as who will get what money at payday as most of the credit cards slated for payment with the second paycheck will be paid already. The same amount of money will be going out each month, just where the money will be going is going to change.
We will be paying out $450/month for 15 months to complete Baby Step Two. Although we could hurry it up by using the third paycheck of the month he will receive twice this year, that money will be used for property taxes, home owners insurance, and Christmas shopping.
Time for a new budget again. Most of it I know by heart, I just need it in writing to actually show my brain that we'll be okay! I'll let you know how it works out!
Wednesday, February 10, 2010
Settled Down (a little bit!)
I've relaxed a bit after my rant the other night. So maybe selling his pickup is not in our best interests right now...but $3000 cash just gets my juices flowing!!
So now I am back into my 'follow the budget and everything will be fine' mode of thinking. Nothing short of winning a major lottery will make this debt go away over night. I just have to remember that every little step counts and as long as we continue to chip away at it steadily the results will be noticeable.
I have to remember that our payments from both federal and state governments will be enough to not only catch us up but to pay a significant portion of our credit card debt.
I start to get worked up when I think about paying off this first $15,375.19 and knowing we have nearly twice as much in student loan debt to pay AFTER that. I wonder how people stay focused on the finish line when it is so far away.
I hear of people sacrificing luxuries for years to pay off debt...how? I don't know how I'm going to get through the next 12 months and people have done this for YEARS? That's what I call dedication. I have no doubts that we will get all this debt paid, I only wonder when will we be able to sit back, relax and finally not have any regular monthly payments other than utilities!
Pay day was today, maybe that's why I have been able to relax a bit. I love payday!
Tomorrow is Faith's due date. Although I am at peace with her passing, I miss her terribly.
So now I am back into my 'follow the budget and everything will be fine' mode of thinking. Nothing short of winning a major lottery will make this debt go away over night. I just have to remember that every little step counts and as long as we continue to chip away at it steadily the results will be noticeable.
I have to remember that our payments from both federal and state governments will be enough to not only catch us up but to pay a significant portion of our credit card debt.
I start to get worked up when I think about paying off this first $15,375.19 and knowing we have nearly twice as much in student loan debt to pay AFTER that. I wonder how people stay focused on the finish line when it is so far away.
I hear of people sacrificing luxuries for years to pay off debt...how? I don't know how I'm going to get through the next 12 months and people have done this for YEARS? That's what I call dedication. I have no doubts that we will get all this debt paid, I only wonder when will we be able to sit back, relax and finally not have any regular monthly payments other than utilities!
Pay day was today, maybe that's why I have been able to relax a bit. I love payday!
Tomorrow is Faith's due date. Although I am at peace with her passing, I miss her terribly.
Sunday, February 7, 2010
On Board...sort of
Well, Hubby just got a call from #1 (19 yo ds). A friend of his just had his pickup break down and offered $3000 for ours...CASH!!! Hubby said no. WHAT?!? I knew I should have taken the call!! The title would have been signed before the kid got here!
We could easily buy a clunker for him to drive back and forth to work for less than $1000 and use what is left to get closer to the end.
One of the things Dave Ramsey says is that to finish the first two baby steps ($1000 baby emergency fund and debt free except the house) is to sell anything and everything...sell so much that your kids think they are next. I have no problem with this concept; I elect to not cause an all-out war.
In my eyes, Hubby is okay with paying off the debt as long as he doesn't have to give anything up. He won't sell his pick-up, golf clubs, golf cart, guns, bow hunting stuff, anything. Maybe that can be our next 'in depth' conversation; what is he willing to do?
Being out of debt would bring me so much security. We could begin baby step three (building an emergency fund worth 3-6 months of expenses) and it wouldn't even take very long. Does my sense of security not matter? Why do material possessions mean more to him than the financial well being of our family (and our marriage). Does he not understand that everything can be replaced and not have debt tied to it? What if the house burned to the ground? What would be important then?
I'm going to make a list showing the value of everything we can sell and see if that makes any difference in his thinking...don't worry, I won't hold my breath!
We could easily buy a clunker for him to drive back and forth to work for less than $1000 and use what is left to get closer to the end.
One of the things Dave Ramsey says is that to finish the first two baby steps ($1000 baby emergency fund and debt free except the house) is to sell anything and everything...sell so much that your kids think they are next. I have no problem with this concept; I elect to not cause an all-out war.
In my eyes, Hubby is okay with paying off the debt as long as he doesn't have to give anything up. He won't sell his pick-up, golf clubs, golf cart, guns, bow hunting stuff, anything. Maybe that can be our next 'in depth' conversation; what is he willing to do?
Being out of debt would bring me so much security. We could begin baby step three (building an emergency fund worth 3-6 months of expenses) and it wouldn't even take very long. Does my sense of security not matter? Why do material possessions mean more to him than the financial well being of our family (and our marriage). Does he not understand that everything can be replaced and not have debt tied to it? What if the house burned to the ground? What would be important then?
I'm going to make a list showing the value of everything we can sell and see if that makes any difference in his thinking...don't worry, I won't hold my breath!
Subscribe to:
Posts (Atom)
Posts
