12. Payday!

I feel like we’re in a rut! Not much debt payoff progress these last two weeks. This may just be a bit of my impatience with the process. Anywho..time to pay bills.

According to my “Bills Budget,” this period’s paycheck covers the expenses below:

billsbudget2.1

After paying these bills, what is left from our pay is $1,635. We are taking $800 for groceries, gasoline, needs for the kids and other things we may need for the family over the next two weeks. The remaining $835 is going toward paying down Credit Card 2.

Since last payday, our debt has gone down only $464 (sad face), but next pay period we will have more to pay towards debt given the bills we pay from that check are lower. Once I get over this impatience, I’ll be able to focus again on the overall progress we have made and remain confident that we are moving steadily toward our goals

That’s all this week. Thanks for reading and the support. Also, follow me on Instagram @financially_me. Take care and share!

11. Catch Up Post!

Yikes yikes yikes! My first post of the New Year is so behind schedule AND I missed the January 4 Payday post. Let’s get caught up!

Since the New Year, my husband and I have reviewed our 2019 Financial Plan. The focus this year still is paying off the remaining debt balances. Assuming we REMAIN DILLIGENT, our debt will be paid off on September 13, 2019. That is a very short time from now and we (me mostly) cannot be more excited. I say I am most excited mainly because I have a much lower tolerance for debt than my husband. Much lower. After today’s paycheck, our debts look like this:

totaldebt1.18

Progress is beautiful! Some contributors to additional debt payments have been my husband’s bonuses. He received a quarterly bonus for Q4 2018 as well as a holiday bonus. We applied the entire holiday bonus to debt and 30% of the Q4 bonus to debt. The remainder of the Q4 bonus went to our entertainment and travel fund. As I mentioned before in The Plan, it is important that we are still able to enjoy our time now together and keeping that balance is key.

Now to pay bills! According to my “Bills Budget,” this period’s paycheck covers the expenses below:

billsbudget1.18

After paying these bills, what is left from our pay is $2,739. We are taking $1,000 for groceries, gasoline, needs for the kids and other things we may need for the family over the next two weeks. The remaining $1,739 is going toward paying off the last open Student loan account and pay down Credit Card 2.

Here is what our debt looks like today, down another $4,020 since 12/21, and down $23,923 since we started on November 23:

debts1.18.PNG

I’m liking that steady decline in the Total Debt number! As, always, thanks for reading and the support. Also, follow me on Instagram @financially_me. Take care and share!

10. How Did You Pay Off Your Debt?

While cooking dinner today, I was listening to a podcast discussing various methods to pay off debt. During the podcast, the hosts were speaking of a woman who was comparing the “Debt Snowball” method of Dave Ramsey to paying the debt with the highest interest first. In her opinion, paying higher interest first was a no-brainer because it costs less in the long run.

One of hosts mentioned that the reason some go for the”Debt Snowball,” starting with the smallest debt balance then moving to the larger, is to get a sense of satisfaction and accomplishment as you eliminate debt after debt. I totally agree!

In trying to pay down our debt, starting with the highest interest rate which was also our highest balance credit card, it seemed like the balance barely moved and I was often discouraged. Not only was I discouraged, but it was enough to think there was no point. We had multiple student loans and multiple credit cards, I really couldn’t see a reasonable end. Now, since focusing on smallest balance, we’ve paid off 3 of 4 student loans and 1 credit card. Also, those minimum payments that are no longer there have been shifted to pay off the next balance.

This last month has given us so much hope and I feel a sort of control again. We are taking this debt down!

What are your thoughts? How did you pay or how are you paying off your debt?

9. Payday!

It’s that time again! Time for bills and goal progress! From prior posts, my current focus is GETTING OUT OF DEBT! The stress of it needs to go.

According to my “Bills Budget,” this period’s paycheck covers the expenses below:

billsbudget12.21

I’m not certain what happened with our Electric bill this month but as soon as I received the bill I called our Electric company to set up a free Home Energy Analysis. I also prepped my landlord in case there are repairs they will need to make. I have never seen a utility bill so high!!

Also, based on the steps completed from The Plan, I have an extra $648 to apply to debt BUT since the electricity is so high that drops to $393, still something. After paying these bills, what is left from our pay is $2,600. We are taking $900 for groceries, Christmas dinner, gasoline and other things we may need for the family over the next two weeks. The remaining $1,700 is going toward paying down the last open Student loan account.

Here is what our debt looks like today, down another $1,400 since 12/07:

debts12.21

Still feeling good about our progress. I estimate we can be out of debt in the second quarter of 2019 if we keep it up. Thanks for reading and the support. Also, I created an Instagram account. Find Financially Me on Instagram @financially_me. Will keep you posted of any changes!

8. My Financial Advisor – the Cheerleader

I recently had an update call with my Financial Advisor and let me say I left that call in SUCH a great mood. I updated him on the progress we had made and he just genuinely ¬†expressed how happy he was that we stuck with the commitments we made. I think for my family, its important to have someone we can talk to about our plans and seek advice, even if that advice isn’t necessarily profitable for the Advisor at that point in time.

Let me tell you, talking through the items crossed off The Plan and being congratulated for each just felt good. I like a pat on the back from time to time!

financial advisor

7. Payday!

We got paid on Friday! And now it’s time to pay some bills. Looking at our “Bills Budget” we have $4,837 in payments to make, made of up the items below:

billsbudget12.07

My 401k deductions stopped this paycheck, so I do have that extra money to pay down debt. After taxes, we received $6,473.80. After paying bills, the balance is about $1,600. We are taking half of that for groceries, gasoline and other things that come up over the next two weeks. The other $800 is going toward paying off the balance of Credit Card 1.

After making this additional debt payments, AND completing Steps 1-5 of The Plan, our debt now looks like this:

debts12.07

We have paid off $18k since we started. When I look at this number, even though we have pulled money from savings, I feel quite a bit of relief! If we have any interesting updates prior to next payday, I’ll be sure to write about them! Until next time…

6. Expense Reduction – Car Insurance

I was listening to a podcast and the host mentioned she shops her car insurance every 6 months. Reason being is because Insurance companies regularly offer new incentives and discounts that are available to take advantage of. I have been with my car insurance company for 12 years!! It’s definitely time to shop.

I used a website called coverhound.com to shop multiple insurance companies at once. As you may remember, we pay $365 per month in car insurance for two leased vehicles (for a 6-month premium of $2,162.26). On CoverHound, we found a major insurance company offering the same limits for $1,489.74! This saves us $672 ever 6 months! Aww man why didn’t I think to do this sooner?

We are moving forward with purchasing the new policy and that extra money will help pay down our debt even faster. I’m really happy with this.

Tomorrow, is Payday! so look for an update on bills being paid, remaining debt balances and what we have to pay toward reducing debt. As always, if you’re enjoying this blog, please like and share it.

Expense reduction