Saturday, October 1, 2016

September 2016- Small wins!

We OFFICIALLY made it below the 70K mark this month!!! I added in a debt snowflake (an additional payment) to pay off Card 1 last month. I did our budget for this month and am all set to pay off Card 2 by the end of the month.  It really is nice to see these small wins happen and be able to pay some things off. It also gives me comfort to know that once those are paid for there will be more money for the snowball and less actual minimum payments. It gives me comfort because we just never know if something is going to come up where we can't pay extra on our debts. I've been listening to The Dave Ramsey show on my commute to and from work. I'm also listening to Smart Money, Smart Kids by Rachel Cruze and Dave Ramsey so that we can start teaching our daughter early about money.  I highly recommend it if you have children. My daughter has been wanting to help out more and more around the house and I think a commission (not allowance) would be a great motivator for her to keep up the good work. I really enjoy listening to these podcasts and audio books about getting out of debt because it keeps me motivated to keep going. According to the snowball we are set to pay off our debt by September 2018, less than 2 years from now!  I'm hoping to try and pay it off sooner by selling some things lying around the house. I purchased supplies a few years ago to make hair clips for little girls but never got around to doing it. I'm more motivated now to make those, clean up the space the ribbon is taking up and sell them for a small profit to pay off one of our credit cards. Here's the dashboard for this month. I've budgeted for an additional snowflake of $998 to pay off Card 2 on my snowball, which increases the snowball amount for this month and puts us one step closer to paying off Card 3 next month.  I'm very excited about our progress. Next step on this debt free journey is to get my husband to stick to the budget that we create. I know a new phrase in our house is going to be "It's not in the budget" instead of "no we can't buy that".  I remember my parents always telling us that we couldn't afford certain things when I was growing up and I hated it. I don't want my daughter to ever hear the words "We can't afford it". Instead I will tell her it's' not in the budget or it's not something that we choose to spend our hard earned money on.



New Game Plan

I feel like the debt snowball is taking forever.  I've been listening to Dave Ramsey's podcast on my commute to work and he's gotten me motivated to get rid of this debt.  I can't wait for the day I can say scream, "We're Debt Free"! So I'm changing over to the lowest balance first method. I might switch back to the highest interest after we knock out a couple of these smaller debts. I also added to the debt snowball two lines of credit that we took out earlier this year (0% interest for 12 months and 18 months) for a sewing machine and lawn mower. Yeah I know! Which actually put us temporarily over the $70k mark again. But now we have the whole picture and I'm not being dishonest about our debt. So here's the new debt picture and debt snowball.