As we start a new month, it’s time to do some evaluating of our progress. And in the past few weeks, Robert and I have crunched the numbers to figure out what we can do better. If you’ve been keeping up with us, I’m sure you know we hit a bit of a snag in August.
That snag being Robert’s car…the one we’re planning to drive until it falls apart because it is paid off. Unfortunately, it may leave our family sooner than we originally planned based off of last month. Not only did we have to put in a new starter switch, but then also a new battery a few weeks later. Yeah I know, when it rains it pours.
But along with those setbacks came some successes. We FINALLY put our cash envelope system to work for us because we realized that we should be having $500 left over from our budget every month…and we weren’t. I’ll get more into how we figured that out later. It’s a simple subtraction of expenses from income that just wasn’t evening out.
We also were able to get our first debt paid off. Yes, I said PAID OFF!! We no longer have any credit card debt. Not a single cent. I’m sorry, I just want to cheer for our little victory. *goofy dancing and booty shaking* Especially since it means we can go to the next step of our debt snowball (for more on the debt snowball, check out Dave Ramsey’s book, Total Money Makeover).
Here is our debt in order from lowest total to highest total for September 2017
Credit card: PAID OFF!!!
old hospital bill: 2,496.64 (we were actually able to put an extra $200 towards this because we paid the credit card off early in the month)
Ford Edge: 10,593.15
Student loan: 23,177
For a grand total of 36,266.79
We also figured out that we are paying at least $1,000 a month just towards our debt. Do you know how sick that made me? That’s $12,000 a year that we could put in our son’s college fund (to pay for a year of college if he did community college). That could be a small down payment on a house, a nice car paid in cash. Figuring that out honestly is what made us have a kick in the pants to do our cash envelope system so much. We want to pay this stupid stuff off so bad it’s ridiculous.
What’s our plan for September?
So of course, we plan on continuing our debt snowball. And we’ve also decided that because it is the only debt we can put it towards because it is an old hospital bill, we’re also going to use some of our HSA to get that one paid off. This is also mainly because we don’t have a whole lot of other doctor bills currently so it only makes sense to use our HSA for what it is intended for. We hope to have our old hospital bill paid off by the end of the year.
If you want to learn more about what we are doing to pay our debt, stay tuned! It’s coming friends! Leave me a comment with some encouraging words or questions that you may have. I love to hear from my readers!
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