Our family goal right now is to pay off all our debt so we can have financial freedom! I’m 28, and specifically, we want to be debt free by the time we’re 30. We wandered into debt but like Dave Ramsey says (we’re huge fans) you cannot wander out – you have to have a plan!
Our plan includes working a ton and cutting our expenses back as much as possible. We have an emergency fund of $1000 so we do not have to go into anymore debt to cover unexpected crises. Then we budget every month using www.everydollar.com (and if you haven’t tried it you should!) And, after paring down our budget to just necessity, everything else is supposed to go to debt.
Here’s our income:
Me paycheck 1: 1535
Me paycheck 2: 1535
Me paycheck 3: 1728
Handsome paycheck 1: 1533
Handsome paycheck 2: 1377
Handsome overtime: 400
Handsome extra job 1: 1100
Handsome extra job 2: 685
Handsome extra weekend job 1: 175
Handsome extra weekend job 2: 315
Handsome extra weekend job 3: 110
Sale of car: 1200
Sale of motorcycle: 2100
Refund of insurance: 124
TOTAL INCOME: $13917. Definitely the best month we’ve ever had!
Giving: 974 (yikes! This should have been 1390! We’ll make up the tithe in October. I forgot to update our tithe when the last few extra paychecks came in.)
Saving: 1250 (Every month we save for insurance, Christmas, an anniversary trip, taxes and more)
Housing: 950 (This is only this low because we accidentally overpaid our water bill last month and there’s a special for our phones so they’re extra low. This could only be lowered if we got rid of Netflix (7.99) and Dollar Shave Club ($3)
Transportation: 950. (Usually, this is just gas. This month we had to pay lots of costs associated with getting a new used car – taxes, tags, brakes. I hate that we had to change cars.)
Food: 870. (Yikes this is high. 500 for groceries [100 each week] plus dog food, eating out and handsome husband’s food budget for work since he works 12+ hour days. I know we’re not supposed to eat out but we have never been able to go a single month without eating out. We stink!)
Family life: 100 (This is date night and 20 bucks each spending money.)
Debt: 4958 (1300 of this is minimums. But still very good knowing this is the best debt snowball month we’ve ever had!!! We paid off Sallie Mae, the smallest Fed Loan and are starting to make progress on our smallest loan from another servicer “My Great Lakes”)
Kids: 1240 (This is daycare, pre-k, diapers, and upcoming birth cost savings)
Misc: 2615. (I should probably break this out a little better – there are health things in here, kids stuff in here, birthday stuff, insurance stuff, etc. I really hate looking at this category in aggregate, it just seems too much money was spent on random stuff.)
So overall a good month. It would have been great if we didn’t have birthdays and family visiting three times!!!! But that’s life and the people we love are in it. We need to put at least 3800 per month to debt if we want to get out of this mess in two-three years. The more traction we can get now the better – things are only going to get more expensive with three kids.
How was your September financially? Have you heard of the debt snowball? I love your comments so feel free to share!