15. I’m Back!

Written April 15 but not posted:

I’m back from maternity leave and back at work! There’s been so much going on that this blog was set on the back burner, but now I need to catch everyone up.

In addition to a new baby, we also MOVED! The goal was to downsize to save in rent and utilities and we accomplished that. I think it’s fair to present out new listing of bills as they stand now. We surely have more money each month ($1,210) to pay down our remaining debt.

Monthly Expenses April 2019

Here’s a glimpse at our debt today:

Debt April 2019

Over 5 months, we have made GREAT progress. As I mentioned…this was written in April, and since then we’ve had a new life event. I’ll post the details this week (week of May 12). Until then, Happy Mother’s Day to all the Mother’s out there!

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!

3. I’m Tired of Debt!

I am tired of debt and have a renewed focus to clear it up. We sat down and made a plan, using money from various savings vehicles we have to get started. Here is what we have saved up:

savings

So here are the components of “The Plan”:

  1. Pause our 401k contributions. Take those dollars and apply them to paying off our debt. I contribute about $200 per check to my 401k. Once I receive a paycheck without the contribution, I’ll see how much we can apply to debt.
  2. Withdraw $6,909 from Investment Savings account and pay off one of the Student Loans. That Student Loan has a minimum payment of $71.92 that we will apply each month to debt
  3. Reduce our Investment Savings account contributions by $681.85 each month and apply to debt
  4. Borrow $4,847.27 from 401k and apply to one of the Student Loans that has a balance of $5,419.37. I’ll end up paying back that 401k loan at 6% interest to myself over the next 5 years
  5. Sell stocks which should yield about $4,000. Use those funds to pay off the balance of the $5,419.37 Student Loan ($572.10). That Student Loan has a minimum payment of $56.44 that we will apply each month to debt. Use $2,663 to pay off another Student Loan. That Student Loan has a minimum payment of $28.75 that we will apply each month to debt. Finally, I’ll take the last $765 and apply it to the last Student Loan of the account.
  6. Each pay period, we will apply the minimum payments no longer due to a debt account until it is paid off

I’ll give updates with each pay check, every two weeks, in a post called Payday!

2. My Family Facts

Sometimes when I read other blogs, I can’t relate as much because I have a hard time finding the family facts. What is the family make up? What is the income, what monthly expenses are there, etc. If I find that helpful, maybe others will too.

In our household is myself, my Husband, both in our mid- 30’s, my Mother, our 2 year old and soon to be new born. Both my Husband and I are working and we are fortunate to have my mother home to take care of our child.

After taxes, we take home $204,000 annually. Our monthly expenses are below. In addition, we get paid bi-weekly so we utilize a “Bills Budget” I created to identify exactly what gets paid from each paycheck based on their due dates and how much money we have to work with. I create this for the full year and it has been a critical in managing our base budget.

monthly expenditures

Another thing that is important to our family is being able to travel, give gifts and have spending money for entertainment. We put aside money from each check for those. Now, I know that may seem like an unnecessary expense, especially when trying to get out of debt, but we are going to try to balance it (for now!).

Our total debt is listed below

debts

In the next post, I’ll write about our plan to get this paid off! I’m sure over time, we may find better ways to do things, but I’ll keep everyone in the loop. If you’re interested in hearing more about the “Bills Budget” just let me know via email at info@financiallyme.com, comment or the Contact page. If you’re enjoy this journey, and think others may too, please share!