Today is one month to the day since we put our debt snowball plan into action. Since that time we've saved some money, and it's a great feeling. With things being so uneasy at work with the legislative session underway, I was really starting to get nervous about how we would manage if one of us lost our jobs. While I still don't know how we would manage, I at least feel like I'm doing something to lessen the load - just in case.
I canceled my yoga membership. This was very hard to do because yoga essentially changed my life during a stressful time, but there's no reason why I can't incorporate yoga into my life OUTSIDE of a studio, and I do. Savings = $55/month.
In February, we paid off our king mattress we financed (interest free) almost 2 years ago. That is saving us $71/month.
This month we paid off our A/C that we financed when we bought our house. We weren't too happy when a month after moving into our house the entire unit died. With that FINALLY paid off, we now no longer owe the credit union $80/month.
I feel very happy with what we've accomplished in just one month's time. It has been hard, but I feel more energized than ever. Our goal for April is to pay off our Sam's Club credit card. This is our only credit card. I made a big payment on it the other day, so it's on its way to death. I can't wait to get through these smaller debts so we can really begin the difficult process (student loans).
Friday, March 25, 2011
Sunday, March 6, 2011
$$$$$$$$$$$$$$$
Lately I am very concerned about financial matters and, frankly, the state of the world.
However, I feel somewhat reinvigorated after buying and reading Dave Ramsey's "Total Money Makeover." For the first time in a long time (possibly ever), I feel very committed to reducing our debt and making our cushion a little more comfy.
As the book suggests, last week I wrote down all of our debt and put it in a spreadsheet. I always knew that Patrick and I had a lot of debt, but I proudly lumped us into that small group of people who have very little (read: less than $1500) worth of credit card debt. However, my arrogance led to ignorance, and I really did not truly understand the magnitude of exactly how much OTHER debt we had. Even worse, my arrogance led us to buy our most expensive vehicle to date last Fall. I'll proudly be paying on that vehicle forever - major sarcasm.
However, I am ready to take charge. With the econony not improving in my opinion, I know it is only a matter of time before the sheer job luck Patrick and I have had in the last few years to come crashing down. I'm not trying to be negative, but I am trying to prepare us for that possible moment when the comfortable isn't quite so comfy. Last month we paid off the mattress that we financed on a whim 2 Memorial Day weekends ago. Proudly, I am sleeping on a bed now that is ours and not ours + Mattress Firm via Wells Fargo. Plus, I've now added $71 per month I can send toward our next debt. And thus our debt snowball begins. My goal this month is to pay off the A/C we financed 3 years ago when ours died right after buying the house. On deck for April is our Sam's Club credit card. May's goal is to pay off the only private student loan I have, one that will never go away if I pay the minimun forever like I've been doing for years. By May's end, we should have all of our "little debt" paid off, and we'll have put a little over $300 a month back into our monthly cushion and have paid off a little over 5K. By then we'll be ready to take on the true debt which is our unbelievably HUGE student loan balances.... Oh, and don't forget that new car!!!
Patrick and I do not live extravagantly by any means. We have no home phone; we have no cable TV. We don't have smart phones, or even half way smart phones. We have a very small house (villa). But, we have an unbelievable ability to toss money right out the window. I spent a lot of time combing through our bank statement for the month of February, and I could not believe that we spent $538 on dining out!!!!!! Yes, it's true!!! Wow, the nice cell phones we could have snagged! Things are going to change. We've been clipping coupons like crazy the past few weeks, and I'm ready to rid ourselves of this crazy cycle of debt.
However, I feel somewhat reinvigorated after buying and reading Dave Ramsey's "Total Money Makeover." For the first time in a long time (possibly ever), I feel very committed to reducing our debt and making our cushion a little more comfy.
As the book suggests, last week I wrote down all of our debt and put it in a spreadsheet. I always knew that Patrick and I had a lot of debt, but I proudly lumped us into that small group of people who have very little (read: less than $1500) worth of credit card debt. However, my arrogance led to ignorance, and I really did not truly understand the magnitude of exactly how much OTHER debt we had. Even worse, my arrogance led us to buy our most expensive vehicle to date last Fall. I'll proudly be paying on that vehicle forever - major sarcasm.
However, I am ready to take charge. With the econony not improving in my opinion, I know it is only a matter of time before the sheer job luck Patrick and I have had in the last few years to come crashing down. I'm not trying to be negative, but I am trying to prepare us for that possible moment when the comfortable isn't quite so comfy. Last month we paid off the mattress that we financed on a whim 2 Memorial Day weekends ago. Proudly, I am sleeping on a bed now that is ours and not ours + Mattress Firm via Wells Fargo. Plus, I've now added $71 per month I can send toward our next debt. And thus our debt snowball begins. My goal this month is to pay off the A/C we financed 3 years ago when ours died right after buying the house. On deck for April is our Sam's Club credit card. May's goal is to pay off the only private student loan I have, one that will never go away if I pay the minimun forever like I've been doing for years. By May's end, we should have all of our "little debt" paid off, and we'll have put a little over $300 a month back into our monthly cushion and have paid off a little over 5K. By then we'll be ready to take on the true debt which is our unbelievably HUGE student loan balances.... Oh, and don't forget that new car!!!
Patrick and I do not live extravagantly by any means. We have no home phone; we have no cable TV. We don't have smart phones, or even half way smart phones. We have a very small house (villa). But, we have an unbelievable ability to toss money right out the window. I spent a lot of time combing through our bank statement for the month of February, and I could not believe that we spent $538 on dining out!!!!!! Yes, it's true!!! Wow, the nice cell phones we could have snagged! Things are going to change. We've been clipping coupons like crazy the past few weeks, and I'm ready to rid ourselves of this crazy cycle of debt.
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