Happy Friday! Not only is it almost the WEEKEND, but it is my personal favorite day of the week: payday.
Now, suprisingly, this isn’t because my shopping fund is refilled, or I can finally spend money on some fancy item I’ve been keeping an eye on. This is my favorite day because every Friday, I get to scrape a little more money off of our Debt Snowball.
I’ve talked about Our Dave Ramsey Adventure before, and my last update was in October when we we hit $15,000 put towards debt for the year. I told you guys that our goal was to pay cash for Keaton’s spring tuition and we got so, so close to that! However, we had a LOT going on in January, and while we socked away as much money as we could, we just didn’t quite hit our goal by the time tuition money was due in February.
We had two options when we realized that we were short on our needed savings: take out a small amount of loans or enroll in a payment plan. Now, Dave Ramsey himself would probably have recommended a payment plan. However, I fully believe that half the battle to paying off debt is the mental game, and we are SO READY to start on our debt snowball, and I think we will really get rolling when we see those numbers go down every month.
Ultimately, we paid over $11,000 in cash for his school, which is $11,000 we don’t have to pay interest on! In a 10 year period that saves us close to $5,000 in interest at 6.8%! FIVE THOUSAND DOLLARS SAVED!
Now, we have our Emergency Fund in place, so we are able to start on our main goal: paying off my student loans. If you remember, our goal time frame for this is October of this year. This is probably a little ambitious due to the fact that we also want to take a few small vacations and have lots of weddings to attend (and Keaton is in two of them), but we are determined to get it done as fast as possible! I started with around $33,000 in loans back in January 2015, and am down to $27,000 with just barely overpaying on the smallest ones, so I think now that we are focusing on one main financial goal we can EASILY pay down 2/3 or more in the next 6 to 8 months.
So today, I sat down, re-did our monthly budget using this form, and found myself with a renewed excitement for what is to come this year! Keep in mind, there is plenty of room for fun in our budget, but sometimes you have to re-focus and remember what’s worth it to spend money on, and how great you feel when you accomplish your goals.
Here’s to hoping and praying that we can stay focused, Good Ole Bess keeps behaving, and we get a nice tax return to throw at our debt snowball as well!