May Debt Repayment Update

May Debt Repayment Update

May is over a third of the way done (already?) and so I may be a little late for our May Debt Repayment Update, but that doesn’t mean it isn’t happening! We got some great amounts of debt paid off, earned a bit of extra cash, and are well on our way to knocking out the Big9! Read on to hear about it!

May Debt Repayment Update- www.diyjahn.com

For those who know our journey, feel free to skip ahead. For those who are new, here’s a little introduction.

So, here’s what’s going on. We plan to give these updates on a monthly basis (at the beginning of each month). You can see past months updates by clicking on our “Frugal Living” tab – or by clicking HERE.

I’m sure you’re wondering how we got to where we are. Well, we began our journey around the middle of September 2015 when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year by this point, so we must have been much higher beforehand. Regardless, when we began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt: which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

TIt was time to pay it off and be debt free. Unfortunately, that sort of decision doesn’t come easy – and the results surely don’t come fast. We are working our way to debt freedom and hope to achieve our goals by January 1, 2019. Stay tuned as we update our progress, how we are getting there, and more by visiting regularly or signing up for our e-newsletter – here!



May Debt Repayment Update

Last month, during our April Debt Repayment Update, we told you how we paid off a WHOPPING $6,073.9. How? Well, you can go back and check that out if you’re interested. Now, the month of April may not have led to quite as high of a debt repayment, but it definitely got us some extra money to put toward debt.

Let’s see where we are for May!

Where are we at with our debt for April?

As you know, we are working on reaching our big, scary goal of paying off $50,000 in 2016. Well, I can honestly say that for a while, I wasn’t sure how possible it was going to be – I didn’t have a lot of faith in myself. To be honest, I’ve been pretty discouraged in general, lately.

However, as of this update we have officially reached the halfway mark for our debt repayment goal – over a month early! Can you believe it?

So, let’s look at the numbers for the May Debt Repayment Update:

  • $40 – this is a minimum payment to a smaller student debt which brought that debt down to $2,352.82.
  • $467.92 – this is a minimum payment for my wife’s federal debt which brought that debt down to 67,747.11.
  • $139.04 – this is a minimum payment for our car which brought that debt down to $4,641.33.
  • $2,910.61 – this is an extra payment we put toward our high interest loan (affectionately titled Big9). We brought Big9 down to $15,299.36!

In total, we paid off $3,557.57 in debt in April- which is pretty great considering we also took a family trip up to Minneapolis to visit my parents. We went to Ikea and the Mall of America and barely spent anything! We shared a hotel room for $100 (for the whole weekend), so our biggest expense was food. Not so bad!

What does this bring us to in total for debt repayment? We have officially paid off a total of $25,898.92 in 2016 AND $36,239.78 since October. Woohoo!

Where does your income come from?

I decided to add this segment in November after reading a few income reports from other bloggers. I don’t want this to sound like bragging, but rather to help you to see that it is possible to pay back your debt on a low income (we’re doing it). You can also see that it’s possible to make money on the side (we’re doing that, too). I hope that this helps you on your journey to debt freedom.

Here’s our income breakdown for the month of April:

  • $1,600 – roughly, this is my take home pay. My pay also includes our housing and utilities (since we don’t pay for those), but this is the actual cash-in-pocket amount after taxes. We use my income for all bills, minimum payments, and necessities (groceries, gas, etc.).
  • $1,800 – roughly, this is my wife’s take home pay after taxes and insurance costs.  We use her income as entirely supplemental – meaning that unless something happens, all of her income goes as extra payments toward debt.
  • $321.62 – This is my blogging income for the month. This isn’t too bad for it being so close to summer! Though, I do expect that this will dramatically decrease as the summer gets closer and as we get busier, but I hope to boost it back up in late August / early September!

Total Income for March: $3,721.62

What is in our accounts?

 

Remember in the past how we were talking about our “New Family Fund” and how we wanted to make sure we had money to start a family when we were ready? Well, that was all well and good, but we recently discovered that our flex-spending account can help us with a lot of the needs in this area and while we know that having a family is expensive, we also realize that compound interest is expensive….

On that note, we have decided to drain our “New Family Fund” for the time being and put all of our money toward paying down debt first and foremost. It’s been a hard decision because we want to start a family while we are younger, but our debt is a mess that we simply won’t be getting out of any time soon and we certainly can’t bring a baby into that…

While we don’t like the decision, it’s necessary as we work to pay off some of these higher interest debts. Perhaps we’ll go back to paying into that when our Big9 and car loan are both paid off, but for now, we are going to keep our emergency fund at $1,000 and stick with that.

Anyway, here are what the accounts look like for our May Debt Repayment Update:

  • $1,000 – Emergency fund. Our goal is to keep this right where it’s at. This is split up into two accounts. One is easy to access through our bank and has about $300 in it, the other is through CapitalOne360. They gave us a free bonus for starting and the interest rate is higher than any others around us! Plus, no fees. Why not get free money? If you use this link, we both get a little bonus for opening an account: https://r.capitalone360.com/yd7NFLaMQu How great is that?

Total Assets for our May Debt Repayment Update: $1,000

May Debt Repayment Update

Looking Ahead

Where do we hope to be, looking forward, after the May Debt Repayment Update?

Well, at this point I simply hope to make it through the summer. Our summer is crazy with me working as a Program Director at a summer camp and my wife helping with catering when she can. I work 14-18 hour days and struggle to find time to sleep, so hopefully it won’t be too insane.

On the plus side, at least we won’t have to spend much money on food as we’ll be eating here at camp most times! That should mean a little extra cash can head right into our debt repayment. We also don’t have any time to travel, so gas money should go down too. Yay for extra funds!

Goal Update

As you all know, we set a huge, big, scary goal of paying off $50,000 in debt in 2016. YIKES! I know it sounds crazy, but we think we can do it. So, we’ll be updating you on that goal each month during our debt repayment updates so that you can watch the progress.

Click HERE to read more about the goal: Financial Goals for 2016

GOAL: $50,000

Total Paid off in 2016: $25,898.92

Left to reach Goal: $24,101.08

We are over halfway there and it’s only been four full months! It’s crazy how well this challenge has been going and I can’t WAIT to see how close we get to reaching our goal. It’s going to be hard, but I know that we can do it! We will need to side hustle like crazy, sell stuff, and work our butts off to make this happen… but at the end of 2016, I know that it will all be worth it. We’ll be $50,000 less in debt and well on our way to debt freedom. Here goes nothing!

Thanks for reading our May Debt Repayment Update!

If you have any comments, let us know! We love to hear.

Disclaimer: Some of DIY Jahn posts contain affiliate links. While I do earn money through Fronto, Ibotta, and other companies, and bonuses for referring people, all of my opinions on the company are 100% honest and my own. Also, please note that recipes, fitness tips, and financial tips are not given by a professional. To understand what this all means for you, click here.

April Debt Repayment Update

April Debt Repayment Update

March is almost over and it’s time once again to update you on our finances, but don’t worry – it’s been a good month! Not only did we take a much-needed vacation, but we also paid off a good chunk of debt due to our tax refund coming in. Hooray! We are even closer to fulfilling our goal of debt freedom. Without further ado – here’s our April debt repayment update!

April Debt Repayment Update- www.diyjahn.com

For those who know our journey, feel free to skip ahead. For those who are new, here’s a little introduction.

So, here’s what’s going on. We plan to give these updates on a monthly basis (at the beginning of each month). You can see past months updates by clicking on our “Frugal Living” tab – or by clicking HERE.

I’m sure you’re wondering how we got to where we are. Well, we began our journey around the middle of September when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year by this point, so we must have been much higher beforehand. Regardless, when we began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt: which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

TIt was time to pay it off and be debt free. Unfortunately, that sort of decision doesn’t come easy – and the results surely don’t come fast. We are working our way to debt freedom and hope to achieve our goals by January 1, 2019. Stay tuned as we update our progress, how we are getting there, and more by visiting regularly or signing up for our e-newsletter – here!



April Debt Repayment Update

At the end of last month, during our March Debt Repayment Update, we had officially paid down a total of $26,608.31 since October – woohoo! Not only that, but we had paid off $3,348.87 in February ALONE. Now, we get to update you on even more money that we have thrown at this debt of ours. We have a long way to go, but we are beginning to think our goals are possible.

Let’s see where we are for April!

 

 

April Debt Repayment Update

Where are we at with our debt for March?

This month turned out to be a great month for our debt repayment which was kind of unexpected. Why? Well, we decided to take a road trip on a whim to the East Coast. A good pal of mine from work wanted to visit his girlfriend out there (in college in Virginia) and my wife and I thought it would be a great way to see a new place for cheap.

As you may remember, I made a few goals for my birthday this past year – 20 Something Goals Before 25. One of my goals was to take a vacation somewhere new. Well, when we realized that we wanted to put everything toward debt and make our big scary goal of paying off $50,000 in 2016, we decided that a vacation may be out of the question. Well, low-and-behold we had this amazing opportunity arise – we surely weren’t going to pass it up!

So, we may have put a little bit less toward debt than we otherwise would have, but we are happy that we went and we don’t regret it for a second. My lovely wife got to see mountains for the first time ever, we drove on the Blue Ridge Parkway, we climbed to the top of Humpback Rock on Humpback Mountain, we saw the sights in Washington D.C., we hung out with my amazing uncle, and we even went to a Movie Tavern that was spectacular! All-in-all, it was a great trip.

I’m sure you’re wondering, though, how this worked for us financially for our April debt repayment update. It was simple really – and inexpensive.

  • We took a week of PTO (so no pay loss) and hunkered down in the car.
  • We bought sandwiches for the car rides (18 hours each way) and didn’t stop for food. The groceries cost about $30 for two days worth of food for us both, plus snacks.
  • The gas was split between us and my friend so that it cost about $85 each (including tolls) for the full ride to Virginia and an extra $40 for our tourist-y riding around after.
  • We ate out a few times (totaling less than $200 for the both of us) and spent our nights at my uncles house (about 4 hours North of where my friend’s girlfriend lives).
  • Oh, and we allowed ourselves to purchase two records totally about $60 (a treat for paying off so much debt).

So, for the entire vacation to the East Coast and a ton of tourist-ing (not a word, but I like it), we paid around $400 total for two people. Pretty incredible, right? Not to mention, I had earned an extra $190 from blogging that was put toward the trip and we had our normal $150 budget for the two weeks. Basically, we were over budget by about $60 – the cost of the records.

Was the vacation worth the $60? Definitely. Would I choose this again? Every time.

Anyway, let’s look at the numbers for the April Debt Repayment Update:

  • $40 – this is a minimum payment to a smaller student debt which brought that debt down to $2,392.82.
  • $467.92 – this is a minimum payment for my wife’s federal debt which brought that debt down to 68,215.03.
  • $139.04 – this is a minimum payment for our car which brought that debt down to $4,780.37.
  • $5,426.94 – this is an extra payment we put toward our high interest loan (affectionately titled Big9). We brought Big9 down to $17,725.33! Most of this was from our tax refund, but about $1,000 was extra on top of that. A great month for the Big9!

In total, we paid off $6,073.90 in debt in March – WOW! We didn’t even realize we could get that much extra toward our debt in one month with our incomes, but we sure are happy to have done it!

What does this bring us to in total for debt repayment? We have officially paid off a total of $32,682.21 since October. Woohoo!

Where does your income come from?

I decided to add this segment in November after reading a few income reports from other bloggers. I don’t want this to sound like bragging, but rather to help you to see that it is possible to pay back your debt on a low income (we’re doing it). You can also see that it’s possible to make money on the side (we’re doing that, too). I hope that this helps you on your journey to debt freedom.

Here’s our income breakdown for the month of March:

  • $1,600 – roughly, this is my take home pay. My pay also includes our housing and utilities (since we don’t pay for those), but this is the actual cash-in-pocket amount after taxes. We use my income for all bills, minimum payments, and necessities (groceries, gas, etc.).
  • $1,800 – roughly, this is my wife’s take home pay after taxes and insurance costs.  We use her income as entirely supplemental – meaning that unless something happens, all of her income goes as extra payments toward debt.
  • $215.16 – This is my blogging income for the month. Not bad for only a few months in! I hope that this continues to boost as I prepare to release my first course and some ebooks – we’ll see! Look forward to some new information coming your way.

Total Income for March: $3,615.16

What is in our accounts?

We are slowly building our savings account. And by slowly, I mean VERY, VERY slowly. Most of our money goes straight toward debt because that’s what our main priority is. That being said, we know that emergencies happen so we have an emergency fund that we never touch unless necessary.

We also have a “New Family Fund” as some of you may know, that we were putting $100 toward each month. As a lesbian couple, we know that having children is going to be very expensive and difficult. However, we also know that we want this to be a part of our life. On that note, we have decided to post-pone contributing to this account for a couple of reasons.

First of all, $100 a month is $1,200 a year that could be going toward paying off our debts quicker. It sounds small, but it adds up. Second, we found out that my wife’s flex-spending card can help us to pay for some of the needs in this area, so we don’t need to use as much out-of-pocket.

Anyway, here are what the accounts look like for our April Debt Repayment Update:

  • $1,000 – Emergency fund. Our goal is to keep this right where it’s at. Unfortunately, we did have to take some from this this month when our car broke down which is why we couldn’t contribute as much toward debt repayment. We did pay it back quickly, though, and it is now sitting happily at the $1,000 mark again.
  • $687.22 – New Family Fund. Each month we were putting an extra $100 toward this month and it was going well. We did put $100 toward it this month as well as the $25 bonus we got for starting an online account through CapitalOne360. Why not get free money? If you use this link, we both get a little bonus for opening an account: https://r.capitalone360.com/yd7NFLaMQu How great is that?

Total Assets: $1,687.22

April Debt Repayment Update

Looking Ahead

Where do we hope to be, looking forward, after the April Debt Repayment Update?

First: We will be completing a 30 Day Minimalist Decluttering Challenge starting April 1 (FRIDAY!) and we would love to have you join us. We are super excited to get rid of the clutter and move forward with our debt-free goals. We’ll be selling, donating, and recycling as much as we can and moving ourselves to a minimalist / zero-waste lifestyle. Anyway, if you are interested at all, check out THIS POST for more information and ideas: Declutter Your Life, Reach Your Debt Free Goals (CLICK HERE).

Second: Last month I said I would be releasing products this month, but with summer around the corner and the trip we went on, it simply didn’t happen. I’m hoping to release some products starting at the end of April and we’ll see what happens! Keep an eye out for them! If you are willing – please share this with your friends! We are working as hard as we possibly can to pay off our debt and every share helps!

Third: I will be looking to find some more clients for my Virtual Assistant Business – if you are looking for help with your blog, managing social media, figuring out a budget for yourself or your business, need some graphics or printables made, or need some content writing done, let me know! I’m happy to work with you to make it happen.

Goal Update

As you all know, we set a huge, big, scary goal of paying off $50,000 in debt in 2016. YIKES! I know it sounds crazy, but we think we can do it. So, we’ll be updating you on that goal each month during our debt repayment updates so that you can watch the progress.

Click HERE to read more about the goal: Financial Goals for 2016

GOAL: $50,000

Total Paid off in 2016: $22,341.35

Left to reach Goal: $27,658.65

We are almost halfway to our goal and it’s only been three full months! We are super excited to see what this year holds and know that we can reach our goals. However, we had some big lump sums during these first three months, so we will need to hustle like crazy the next nine months to reach this goal. We can do it (I hope..)!

Thanks for reading our April Debt Repayment Update!

If you have any comments, let us know! We love to hear.

Disclaimer: Some of DIY Jahn posts contain affiliate links. While I do earn money through Fronto, Ibotta, and other companies, and bonuses for referring people, all of my opinions on the company are 100% honest and my own. Also, please note that recipes, fitness tips, and financial tips are not given by a professional. To understand what this all means for you, click here.

March Debt Repayment Update!

March Debt Repayment Update

It’s time once again for us to let you all know where we are in our debt repayment – woohoo! As you know, we began this journey in October of 2015 and have since paid back a TON of debt. We are doing our best to smash this debt in three years so that we can begin living the lives we have always dreamed of living. Without further ado – here’s our March debt repayment update!

March Debt Repayment Update- www.diyjahn.com

For those who know our journey, feel free to skip ahead. For those who are new, here’s a little introduction.

So, here’s what’s going on. We plan to give these updates on a monthly basis (at the beginning of each month). This is our third one, but you can find the other two by clicking on our “Paying Off Debt & Saving Money” tab – or by clicking HERE.

I’m sure you’re wondering how we got to where we are. Well, we began our journey around the middle of September when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year by this point, so we must have been much higher beforehand. Regardless, when we began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt: which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

But here’s a little infographic to help you see where our debt comes from:

Where our debt comes from

March Debt Repayment Update

At the end of last month, during our February Debt Repayment Update, we told you all that we had paid off a total of $23,259.44 in debt – wowza, that’s a lot! We also told you all that we had brought out debt down to a total of $174,814.7 which was awesome.

We made a mistake though.

While we have been paying off exactly what we have told you. And we have brought our told down to the aforementioned number, we need to note that we have not been including interest in these calculations. At first, this was because we were paying of the debts that were smaller and, since the other ones were in deferment, we did not feel the need to include the interest calculations in our numbers.

However, since we have gained followers and you all are invested in our debt repayment, we want to make sure that we are all on the same page. So, since we did our first calculation of how much debt we owed and stuck those numbers into our lovely little excel sheet, we have also gained a LOT of interest. We also added another loan in October for my fourth semester of grad school.

Therefore, our loan total has changed and is not, unfortunately, back up to a total of $187,724.2

Why am I tell you this?

I want you all to know exactly what our totals are so that you can rejoice in our wins when we reach them! I want you all to be on this journey with us. Most importantly, I want to be transparent with you about what our goals are, where we are, and what we are doing to reach them.

From now on, I’ll be adding up our interest monthly and putting it into these lovely little updates so that there is no more confusion. Thank you ALL for understanding, supporting us, and walking with us on this journey!

Anyway, let’s move on to the update and see what we did this last month for our March debt repayment update!

March Debt Repayment Update

Where are we at with our debt for February?

Well, we had another BIG month for debt repayment and we are SUPER excited about it. No, it wasn’t as big as January because we didn’t have the lump sum to put toward debt. However, we DID have a fantastic month for saving money and living frugally. In fact, we put more non-lump-sum money toward our debt this month than any other month we have had so far.

Let’s look at the numbers for the March Debt Repayment Update:

  • $40 – this is a minimum payment to a smaller student debt which brought that debt down to $2,388.86
  • $467.92 – this is a minimum payment for my wife’s federal debt which brought that debt down to 66,958.89
  • $139.04 – this is a minimum payment for our car which brought that debt down to $4,919.41 (finally below $5,000!)
  • $2,701.91 – this is an extra payment we put toward our high interest loan (affectionately titled Big9). We brought Big9 down to $23,430.73.

In total, we paid off $3,348.87 in debt in March – WOW! We didn’t even realize we could get that much extra toward our debt in one month with our incomes, but we sure are happy to have done it!

What does this bring us to in total for debt repayment? We have officially paid off a total of $26,608.31 since October. Woohoo!

Where does your income come from?

I decided to add this segment in November after reading a few income reports from other bloggers. I don’t want this to sound like bragging, but rather to help you to see that it is possible to pay back your debt on a low income (we’re doing it). You can also see that it’s possible to make money on the side (we’re doing that too). I hope that this helps you on your journey to debt freedom.

Here’s our income breakdown for the month of February:

March Income

Here’s what this breaks down to:

  • $1,700 – roughly, this is my take home pay. My pay also includes our housing and utilities (since we don’t pay for those), but this is the actual cash-in-pocket amount after taxes. We use my income for all bills, minimum payments, and necessities (groceries, gas, etc.).
  • $1,800 – roughly, this is my wife’s take home pay after taxes.  We use her income as entirely supplemental – meaning that unless something happens, all of her income goes as extra payments toward debt.
  • $500 – Crisis Line – every three months my wife has the opportunity to be on call for the crisis line. This means that she is required to answer calls for those in need 24/7. For this, she gets an extra $500.
  • $222.65 – This is my blogging income for the month. Not bad for only a few months in! I hope that this continues to boost as I prepare to release my first course and some ebooks – we’ll see! Look forward to some new information coming your way.

Total Income for February: $4,222.65

What is in our accounts?

We are slowly building our savings account. And by slowly, I mean VERY, VERY slowly. Most of our money goes straight toward debt because that’s what our main priority is.

That being said, we know that emergencies happen so we have an emergency fund that we never touch unless necessary. We also have a “New Family Fund” as some of you may know, that we put toward each month. As a lesbian couple, we know that having children is going to be very expensive and difficult. However, we also know that we want this to be a part of our life.

As I told you last month, we chose to save for having kids instead of buying a house right now because there’s never a right time to have kids, but there is a right time to buy a house.

Anyway, here are what the accounts look like for our March Debt Repayment Update:

  • $1,000 – Emergency fund. Our goal is to keep this right where it’s at. We didn’t have to touch it at all this month – woohoo! Let’s hope that it stays that way – knock on wood.
  • $562.22 – New Family Fund. Each month we put an extra $100 toward this fund. Like I said, the saving is slow going, but it’s important to us. We also add an extra $10 (part of our banking agreement that this is auto-deposited into savings each month). Every quarter, the interest for our savings is added to this as well.

Total Assets: $1,562.22

We try to keep next to nothing in our checking account at all times. We use cash for groceries and gas (or whatever else we need) and we use all the rest of our money on debt. So, I won’t be sharing our checking account cash anymore because there just isn’t anything in there.

March Debt Repayment Update

Looking Ahead

Where do we hope to be, looking forward, after the March Debt Repayment Update?

First: Later this month we are taking a trip out to the East coast. We will be visiting my uncle and staying at his place for a few days. We are hoping to use funds from our change jar to cover this, but if we need anything extra it will be taken from the normally budgeted funding (we give ourselves $300 every two weeks for groceries and gas and it would come from this).

Second: I will be releasing products this next month and hopefully this will earn us a little bit of extra funding! I also will be working hard to partner with other bloggers and exchange guest posts to hopefully bump up my reader numbers. If you are willing – please share this with your friends! We are working as hard as we possibly can to pay off our debt and every share helps!

Third: We are considering refinancing our Big9 loan. We hope to have the entirety of it paid off by the end of 2016, but we still think refinancing could help. After looking at some numbers, it looks like we would save a total of up to $700 for just this year, but there are some things we will be considering before making the choice – stay tuned to hear what we decide!

Goal Update

As you all know, we set a huge, big, scary goal of paying off $50,000 in debt in 2016. YIKES! I know it sounds crazy, but we think we can do it. So, we’ll be updating you on that goal each month during our debt repayment updates so that you can watch the progress.

Click HERE to read more about the goal: Financial Goals for 2016

GOAL: $50,000

Total Paid off in 2016: $16,267

Left to reach Goal: $33,732.55

Thanks for reading! If you have any comments, let us know! We love to hear.

Disclaimer: Some of DIY Jahn posts contain affiliate links. While I do earn money through Fronto, Ibotta, and other companies, and bonuses for referring people, all of my opinions on the company are 100% honest and my own. Also, please note that recipes, fitness tips, and financial tips are not given by a professional. To understand what this all means for you, click here.

February Debt Repayment Update

February Debt Repayment Update

I have FANTASTIC news for you all! We have officially completed our very first No Spend Challenge – which you can find out more about by clicking HERE. We couldn’t have done it without the support from all of you, your kindness and comments, and of course, our challengers who took the challenge right along beside us. Before we get all interested in how the challenge went (we’ll post a recap later this week), let’s look at how the No Spend Challenge affects our February Debt Repayment Update!

 

February Debt Repayment Update- www.diyjahn.com

For those who know our journey, feel free to skip ahead. For those who are new, here’s a little introduction.

So, here’s what’s going on. We plan to give these updates on a monthly basis (at the beginning of each month). This is our third one, but you can find the other two by clicking on our “Paying Off Debt & Saving Money” tab – or by clicking HERE.

I’m sure you’re wondering how we got to where we are. Well, we began our journey around the middle of September when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year by this point, so we must have been much higher beforehand. Regardless, when we began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt: which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

But here’s a little infographic to help you see where our debt comes from:

Where our debt comes from

February Debt Repayment Update

 At the end of last month, we had $185,603.54 left in debt. Of course, due to interest accruing and the like, it has gone up some since our last update (and will do this each month). Thankfully, we were able to put a total of $1,009.67 toward our debt in December which is more than the accruing interest (though not by a ton). In either case, we still went in the right direction!

As you may remember, we had just built our emergency funds back up only to have them depleted once more for the car issues (and then brought back up again). In our New Family Fund, we had a total of $332.03 and not too much in our checking account (which is the goal). So all-in-all, December was a great month for us financially – you can read about it HERE.

 

Where is our debt for January?

Now, as you guys may remember, we were completing our first No Spend Challenge for the month of January and while we haven’t done a full recap yet (later this week), you can read all about our progress during the challenge by clicking HERE.

Why is this important to note?

Well, you’re going to see some BIG numbers headed toward our debt and some big accomplishments. Now, I’m not saying that we CAN’T do these numbers every month, but I want to let you all know that that’s where it is coming from. We also received a lump sum check that we put straight toward debt and that was a huge portion of this month’s payoff.

So, anyway, let’s get down to business.

First of all, I am super excited to announce that my wife and I are no longer in credit card debt! We have officially paid off our credit cards in their entirety and don’t plan to ever rack up that debt again.

How much did we pay this month?

Let’s take a look at where our debt repayment is now. During the month of December, we were able to put $1,009.67 toward debt, which is great considering the car repairs, Christmas, and travelling. However, we way more than topped that in January by putting the crazy amount of $12,918.58 toward debt!

Yes, you read that right, we put $12,918.58 toward debt this month.

This brings us up to our first $20,000 of debt repaid since starting to aggressively pay off our debt. Remember, we had made quite a few payments before this decision, but we have not counted those in. Our total debt repayment since October is: $23,259.44!

February

As you may remember, we reached our first goal of paying 5% of our debt way back in November. We didn’t move much from there in December, but this month we have skyrocketed to 11%! Woohoo! This leaves us with $174,814.7 (not including the accrued interest which will bring us back up a little bit).

A couple of notes about this:

  1. Our credit cards were at $3,470.59 and $3,763.07 at the beginning of the month and are now at 0! Yay!
  2. We have decided to keep the car payment and pay off my private student loan next because it’s interest rate is a whopping and horrible 9%. We started the month with it at $31,170.6 and it is now down to $26,132.64.
  3. We always make our minimum payments on the debts that are out of deferment including: my wife’s federal student loans, my wife’s college student loan, and our car payment. When the other loans are out of deferment (in roughly 16 months) we’ll make minimum payments on those as well (but maybe if we work hard we’ll have some that we pay off before then!).

Where does your income come from?

I decided to add this segment in November after reading a few income reports from other bloggers. I don’t want this to sound like bragging, but rather to help you to see that it is possible to pay back your debt on a low income (we’re doing it). You can also see that it’s possible to make money on the side (we’re doing that too). I hope that this helps you on your journey to debt freedom.

My wife and I’s pay has both risen a small amount due to annual raises. My wife makes around $1,800 per month and I make roughly $1,600 a month (both post-tax, post-health insurance, post-retirement contribution). We have taken a vow to use only my income to support us – pay our bills, our groceries, our gas, minimum payments, everything and use the entirety of hers to pay extra on debt. However, as you know, sometimes her paychecks must be used for other purposes (such as fixing the car, etc.)

This month, thankfully, all of our extra funds could go toward our debt repayment (and most of my checks, too, since we were on our No Spend Challenge). We did make an extra $200 catering which was all put toward debt and DIY Jahn made some extra fund-age for us as well, though not a ton. We are hoping with the release of our new course we will bump up our income a little bit.

Here’s what our income breaks down to for the month of January:

 

February Income

My wife and I work as a team and while we know that she earns more than I do, we never hold that against one another. Our money is just that, our money. For a long time I supported her on just my income, when she got a job, she supported us both. Now we are pretty close to even. While I don’t make, in cash, anywhere near what she makes, my job also pays for the house and all bills associated (repairs, utilities, etc.) – so we are fairly equal.

The thing to remember though is that even if we weren’t: we are married. If she was making nothing, my checks would still be just as much her money as her paychecks are now. We are equals in this relationship. It matters, ya know?

Don’t forget our assets!

This is one of our first full months in which we didn’t have to utilize our emergency fund at all! I’m so excited to report that not only did our emergency fund stay the same, but we were able to see our first interest gain on our savings. Okay, so it may have been only $.19 but that’s better than nothing, right?

Each month we also contribute $100 toward our New Family Fund. Because of the way our relationship works, we know that when we want to have children, we will need a large fund for this. Since we want to have kids in a few years, we’ve started saving for this now.

I know what you are thinking: why don’t you have a “new house fund” as well. Well, we have thought about it, honestly. We have looked at and fell in love with houses. We have wanted to buy houses. There’s a lot that we have tried, but it always ends the same: we need to stay where we are until our debt is paid off because right now, we can put a lot extra toward debt each month.

The difference between saving for housing and saving for kids? Well, housing could happen at any point in life. If we need to wait 10 years to buy a house, then that’s what we will do. However, there’s sort of a timeline with kids, we want to still be young enough to truly enjoy them when we have them. So, the fund starts now and the housing fund will start next year (in theory). I hope that makes sense.

February Money

Looking Ahead

 Where do we hope to be, looking forward?

First: We have learned a ton during our No Spend Challenge. It was truly eye-opening and we will be writing about that later this week during a recap. However, this has changed the way we look at finances. We have lowered our monthly budget by $100 leaving us with $200 for groceries, $40 for fun money, and $60 for gas. We have also decided to continue our No Spend Challenge for as long as we are able – which we think will get us a few weeks into February and save us some more extra funds for debt!

Second: We have recalculated where our money goes and, barring there are no giant repairs to make on our car, we should be able to put an extra $1,700 per month toward debt ever month. Woohoo! We also hope to keep earning on the side and maybe even bump that up a little bit!

Third: We have made a really big, huge, scary goal of paying off $50,000 in debt in 2016! I know this sounds crazy, but if we reach it we will be in such a better place to reach our goals super fast. I hope we can make it! It scares me to death, but man it would be nice.

So, stay tuned for more – big things are coming our way (and yours)! Thank you for joining us on this journey, supporting us, and keeping us going. We truly appreciate it.

Disclaimer: Some of DIY Jahn posts contain affiliate links. While I do earn money through Fronto, Ibotta, and other companies, and bonuses for referring people, all of my opinions on the company are 100% honest and my own. Also, please note that recipes, fitness tips, and financial tips are not given by a professional. To understand what this all means for you, click here.

January Debt Repayment Update

January Debt Repayment Update

Happy New Year! It’s officially 2016, can you believe it? And so it’s time, once again, for a Debt Repayment Update – can you believe I’ve already done three of these? This will be my fourth since we started aggressively attacking our debt.

It certainly feels good to be in the midst of repayment. Okay, maybe it’s a little overwhelming, but on the bright side – we are on our way! It’s been 14 weeks, my blog has been live for 2.5 months, and we are just beginning our No Spend Challenge month. Find out more about that by clicking HERE.

With that being said, I promised all of my challenge-takers an inspirational quote for each day of the challenge. Most days will have tips and tricks to save and earn extra money this month, but as you all know – we always start with a debt repayment update and an income report for each month!

So, before we get bogged down in the dollars and cents, here’s the inspirational quote of the day. Feel free to pin it, share it, tweet it, like it, and whatever else you would like!

Quote - Day 1

“Debt is normal. Be weird.” – Dave Ramsey

Let’s be weird and get this debt paid off by saving as much as we can this month.

Without further ado, our debt repayment update.

For those who know our journey, feel free to skip ahead. For those who are new, here’s a little introduction.

So, here’s what’s going on. We plan to give these updates on a monthly basis (at the beginning of each month). This is our third one, but you can find the other two by clicking on our “Paying Off Debt & Saving Money” tab – or by clicking HERE.

I’m sure you’re wondering how we got to where we are. Well, we began our journey around the middle of September when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year by this point, so we must have been much higher beforehand. Regardless, when we began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt: which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

But here’s a little infographic to help you see where our debt comes from:

Where our debt comes from

January Debt Repayment Update

 At the end of last month, we had made the realization that we had paid a whopping $9,423.67 toward debt – almost $10,000 in only 10 weeks – leaving us with $186,613.21 left to pay on our debts. While we didn’t pay a ton in November, we did get some payments beyond the minimum – so that was exciting!

As you may remember, I was really sick at the end of November and we ended up needing to use our emergency funds to pay some bills until I was feeling well enough to go back to work and get my check. We were quite withdrawn and had only $260 left by the time I was able to go back (I had to take a full week off). We also had $232.03 in our New Family Fund, which was left untouched (as a rule) and $25 in our checking account. Quite the way to end the month, I’d say!

Where is our debt for December?

 Okay, so let’s take a look at where our debt repayment is now. During the month of November, we were able to put $919 toward debt and we more than matched that this month. We put $1,009.67 toward debt this month!

The strategy we have been using is to try to always have enough to pay a second minimum payment on the debt we are trying to pay off the fastest. While we would love to put more than that, we haven’t gotten to that point yet.

However, with what we were able to put toward debt this month we have reached our first $10,000 of debt repaid since starting to aggressively pay off our debt. Remember, we had made quite a few payments before this decision, but we have not counted those in.

January

As you may remember, we reached our first goal of paying 5% of our debt back last month. We haven’t moved from the 5% realm yet, but we did manage to put $10,433.34 toward our debt this month! Woohoo! This leaves us with $185,603.54 to start the New Year. Not so bad, right?

Where does your income come from?

I decided to add this segment in last month after reading a few income reports from other bloggers. I don’t want this to sound like bragging, but rather to help you to see that it is possible to pay back your debt on a low income (we’re doing it). You can also see that it’s possible to make money on the side (we’re doing that too). I hope that this helps you on your journey to debt freedom.

My wife and I’s pay has not changed as of right now. My wife makes around $1,800 per month and I make roughly $1,400 a month (both post-tax, post-health insurance, post-retirement contribution). We have taken a vow to use only my income to support us – pay our bills, our groceries, our gas, everything and use the entirety of hers to pay off debt. However, as you know, sometimes her paychecks must be used for other purposes.

This month, my wife’s first check went toward replenishing our emergency fund. Unfortunately, half of the second check went toward repairing our car. Our airbag lights came on – apparently a sensor was broken in the computer. The repair cost $400 and led to an inspection which reported $900 more repairs needed. The car is in the shop to get these repairs completed now, so we will be paying for that with our emergency fund.

For DIY Jahn (this blog), we have earned a total of $136.46 this month. Now, a couple of things. First of all, this is lower than last month – I was involved with writing articles for a business for pay, but when I was unable to write for a few days they stopped communicating with me, so this has gone away since. I did not earn anything from that company this month (while they were the majority of earnings last month).

Instead, the entirety of the $136.46 was made from the blog. However, there is a little catch – and that’s point two: some of this cash is still incoming. Some of the companies that I work with on DIY Jahn do their payments on a month-to-month basis, so I will not being seeing those payments for a few weeks ($99). While they were earned during this month, the actual take-home pay was $37.46 for December.

As you may remember from last month, we have also decided to do some catering on the side with a friend. This is a one day event for my wife and I (roughly six hours) and we earn about $100 each. This month, we did three nights which resulted in a total of $600 extra. I know what you are thinking – why did we not put all $600 toward our debt? I wish we could have, but with Christmas coming up we did not want to break our budget for gifts (like last month). Instead, we used this money to purchase all of our gifts for friends, family, and ourselves. We also are using it as some gas money to get to our parents’ houses for Christmas.

Here’s what our income breaks down to for the month of December:

 

January Income

Don’t forget our assets!

 I’m excited to report that our assets have been replenished fully this month after a big depletion last month! As I said previously, we used my wife’s checks to help with this situation. As of the end of December, we have a full $1,000 in our emergency fund and have been able to add the monthly-contribution of $100 to our New Family Fund – leaving us with $332.03!

Now, you may notice two areas that have been taken out for this month’s debt repayment update – the coin jar and the Paypal account. Now that I am not writing articles for the aforementioned company, our Paypal account does not have any funds so I removed the section. As for the coin jar, we have decided that this will be our vacation fund (so as not to break the budget for vacations) so we have removed this section as well.

January Money

Looking Ahead

 Where do we hope to be, looking forward?

First: Well, we know that we have a big expense coming up with our car and we will not be counting this in our No Spend Challenge. Car repairs are unexpected costs, but a necessary thing if we hope to keep getting to work to earn more money. So, this is something that we will have to pay regardless of the No Spend Challenge (and I hope you won’t count it against us!). You can look for it in the debt repayment update – don’t be surprised!

Second: However, since we are completing the No Spend Challenge this month, we hope to really do a number to our debts and put some extra funds toward them (even with the car payment). Want to join us? There’s still time. Check out the post HERE.

Third: We hope to keep earning side income from catering (we have one event lined up for January 9th, but know that the events will be less now that the holiday is over). I also hope to keep earning extra with DIY Jahn and (hopefully) release my first product soon which will, in theory, help us to keep earning some money to pay off our debts!

Fourth: We’ll be reevaluating our budget as we move through the No Spend Challenge and that should change how we pay back our debts. Read about this in next month’s debt repayment update!

So, stay tuned for more – big things are coming our way (and yours)! Thank you for joining us on this journey, supporting us, and keeping us going. We truly appreciate it.

Disclaimer: Some of DIY Jahn posts contain affiliate links. While I do earn money through Fronto, Ibotta, and other companies, and bonuses for referring people, all of my opinions on the company are 100% honest and my own. Also, please note that recipes, fitness tips, and financial tips are not given by a professional. To understand what this all means for you, click here.

December debt repayment update

Good morning, dear readers.

First of all, before we talk about our debt repayment update, I want to explain why I haven’t been around the last couple of days. I have been thinking of you all often, believe me, but unfortunately I came down with the dreaded flu. I stayed in bed for the last 5 or so days (since Saturday) and am still not feeling entirely better.

Anyway, I apologize for the lack of posts, but we do not have internet at home, so now I must catch up on my posting and make it up to you all (I promise I will!).

Can you believe that it is already time for another debt repayment update? We have been working aggressively at paying off our debt now for 10 weeks. It sounds so small, but it feels SO long. I can’t believe how fast and slow time is passing all at once.

For those who know our journey, feel free to skip ahead. For those who are new, here’s a little introduction.

So, here’s what’s going on. We plan to give these updates on a monthly basis (at the beginning of each month). This is our third one, but you can find the other two by clicking on our “Paying Off Debt & Saving Money” tab – or by clicking HERE.

I’m sure you’re wondering how we got to where we are. Well, we began our journey around the middle of September when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year by this point, so we must have been much higher beforehand. Regardless, when we began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt: which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

But here’s a little infographic to help you see where our debt comes from:

Where our debt comes from

We’ve already paid off two of these accounts and almost $10,000 in just 10 weeks. We’ll explain more in this post: here goes!

December Debt Repayment Update

When we last posted, we had paid off enough debt that our new debt total was $187,517.1. This left us with $1000 in our emergency fund, $132.03 in our New Family Fund, and a couple hundred dollars in our checking account, which was great. A great way to start the month of November.

However, this month definitely did not go as we had planned (or hoped). Here’s what happened. The month of November is a big month for us.

  • Birthdays: While my birthday is technically in October, we always celebrate it in conjunction with my wife’s birthday (which is in November). We go away for the weekend in between the two birthdays – a trip to Minneapolis, a nice hotel room, some time at the water park and the Mall of America, our favorite restaurants. It’s not necessarily the cheapest trip, but usually we budget in for it and it goes well and is a ton of fun. We don’t take trips often, so we don’t feel bad for this yearly indulgence.
  • Thanksgiving: Each year we help to buy the turkey for my family Thanksgiving, we pay for gas to and from my parents and my wife’s parents’ houses, and we purchase some side dishes to contribute. It’s important to us that we contribute to the holiday meal.
  • Black Friday: We always make sure to budget for Black Friday because it’s a great time to purchase gifts for our friends without breaking the bank and spending a fortune. Read here about how we rocked BF 2015 and how Black Friday helped us to reach our goals.

Finally, we had an incident where we had to pull from our emergency fund. Bills were coming in and we needed groceries. Unfortunately, I still had the flu so I could not go to work to cash my check. So, we had to transfer some money over from our emergency fund to pay for these. This money will be paid back at the beginning of this month, so we aren’t concerned.

Where does this leave us?

First of all, let’s take a look at where our debt repayment is now. During the month of October, we were able to put the hefty sum of $8,504.67 toward our debt repayment goals. Unfortunately, money like that doesn’t come around every month. For the month of November, we weren’t able to put nearly as much toward our debt.

Instead, we put $919. With everything that went on throughout the month, though, we feel fairly good about this small amount. It was everything we could put toward debt and we know that December will be even better because of it.

December

Which brings us to our first goal! We have officially paid off 5% of our debt! This may seem like a small amount, but with the amount of debt we owe, this comes to a whopping $9,423.67!

Where does your income come from?

I’m sure you’re wondering about an income report for these numbers and I would love to share this with you.

My wife makes around $1,800 a month post-tax, while I make roughly $1,400 – leaving us with a total of $3,200 net pay. We have taken a vow to only use one income (mine) to pay our bills and to live off of while using the entirety of my wife’s to pay off debt – a choice that resulted in an extra $1,800 toward debt each and every month (Read more HERE). This month, the entirety of my wife’s check went toward birthday weekend, birthday gifts, Thanksgiving food, and Christmas gifts for family and friends.

For DIY Jahn (this blog) and the business I do along with it (mostly freelancing) – I received a total of $158. Actually, we had a total of $303, but the second hundred was technically earned in October, so I did not add this into our income.

We also have decided to do some catering on the side with a friend who works with me. This is a one day event for my wife and I (about 6 hours) and we earn about $100 each – it’s usually only around 1 night a month. So, this month, we were able to pull in an extra $200 cash.

We were paid from some online gigs as well, but the checks will be arriving after this blog is written so I will not add those into our monthly income.

Here’s what our income breaks down to for the month of November:

December income

Don’t forget assets!

This month, our assets were definitely depleted. Obviously we aren’t including retirement and health savings funds in this information – both of which are direct deposited from our paychecks.

So, at the end of the month we have around $25 in our checking account, $260 in our emergency fund (OUCH!), $232.03 in our New Family Fund, and $166 on paypal. We also have our change jar with about $50 in it as of right now.

December money

While this is not necessarily where I was hoping we would be at this point, I feel good that we have survived the biggest spending month of the year (for us).

Looking Ahead

Where do we hope to be, looking forward? Well, there are a couple of things we hope to do this coming month.

First, we hope that we will be able to build our emergency fund back up to where it needs to go. This won’t be an issue, but is something that we need to think about.

Second, we want to find ways to finish our Christmas shopping without taking away from our debt repayment goals. There isn’t much left, but my wife and I would still like to buy gifts for each other and my father.

Third, we have a goal to continue earning side income so that we can have extra funds to put toward our debt repayment.

Fourth, we would like to reevaluate our budget with the new year coming. Especially our cash budget – which I’ll be telling you more about soon.

Finally, we are planning to try a No Spend Challenge for the month of January. I’ll be telling you more about what this is in a coming blog post, but I hope that we can make the entire month without spending ANY money on ANYTHING except gas to get to work. If you’re interested in joining us, we would love to have you along for the ride. Just leave a comment below and we’ll keep you up-to-date on the plans.

Thank you for joining us on this journey – we truly appreciate your support as we move forward in paying off our debt.

November debt repayment update

It’s time once again for a debt repayment update. Now, it has been about 6 weeks since we began aggressively paying off our debt and we have an update!

Those who know our journey can skip this little section:

For those who are just joining us on our journey, we plan to give these updates on a monthly basis (at the beginning of each month). However, the last update was given only 2 weeks ago, so this one is sort of out of place, but will help us to get back on track.

Just to help you understand how we got to where we are: we began our journey around the middle of September when my wife and I got married and decided to calculate our combined debt. That being said, we had been making payments for almost a year at that point, so we must have been much higher beforehand. Regardless, when we first began religiously calculating our numbers in September, we came to the conclusion that we have $196,021.8 in debt which is terrifying.

If you want to read more about how we racked up so much debt, you can read about it in our post here (click here).

But here’s a little infographic to help you see where our debt comes from:

Where our debt comes from

Okay, so how did we do for the second half of October:

As I stated, we are working hard to pay off our debt fast. We want to be debt free as soon as possible.

When we posted last, we had paid off $7,926.86 on our loans in only 4 weeks! This left us with $188,094.9 in debt, $20 in our emergency fund, $15 in our checking account, and no savings.

So, October 15 we began our new aggressive and exceptional frugal budget. I got my paycheck from work and it was right around $726 as always. We split this check apart and decided to make it last these past two weeks and put all of my wife’s checks toward our goals (you can read here about how we saved $1800 a month to put toward debt in only one night).

We decided to use the envelope budgeting system (I’ll post more about how to do this soon) and it worked amazingly. I won’t lie, it was really hard. we left $480 in the back to pay for bills and took out $220 cash to pay for groceries, gas, and anything else we wanted over the last 2 weeks. When it got toward the end, it was really difficult to not revert to spending money, but the nicest part was, when the cash was gone – we had to stop spending .We didn’t have a choice. It kept us accountable and we saved hundreds of dollars over the past few weeks.

So, we decided that my wife’s paycheck would go entirely toward our aggressive debt repayment plan. Our first step in the plan was to pay off her parents and David’s Bridal (we felt these were the most urgent debts we owed). We thought we had completed them both, but apparently we miscalculated and owe David’s Bridal $15. We will be paying that off soon though! Either way, we have 1 less debt on our plate.

In the past two weeks, we have put $216.52 toward our debt. It doesn’t seem like a lot, and in fact, it isn’t. We paid the minimum payment on our car, $139.04 and the minimum payment on our LC loan $92.48. Most of our other debt payments come out at the beginning of the month, so these were the only two we had to pay for these past two weeks.

November

Here is our November debt pie chart which resulted in our total debt becoming:

$187,517.1

Now, it may not seem like we even made a dent this month. However, we used our funds to reach goals in other areas (that affect our debt repayment directly).

Last month, we had only $20 in our emergency fund. So, in the past two weeks we have managed to build this fund back up to $1,000. I’ll be writing more about why we put our money into an emergency fund instead of putting it toward loans soon, stay tuned! Anyway, our goal was to reach $1,000 for this fund, which is where we want to keep it until our debt is repaid. So we reached our goal!

We also started a new family fund, which may sound silly. Anyway, we have decided to put $100 toward this fund every month to aid in TTC expenses when we attempt to get pregnant in a couple of years. We know it is a ways away, but we want to make sure that when we decide to start a family, we have the funds to try! This month we have $132.03 in this fund.

We have $387.64 in our checking account right now. We will be putting this toward our student loan payment at the beginning of November.

We also have $200 in cash in our change jar. We are using this to help pay for our celebratory birthday weekend which is coming up next weekend. Since my wife and I have birthdays that are roughly a month apart, we celebrate them together by taking a weekend away to Minneapolis. I’m sure I’ll be writing about it soon if you’re interested! 🙂

So, here is what our accounts look like as we begin this month:

november money

You’ll notice a slot for paypal and I think this slot is the biggest change since last month of anything. I have began trying to make extra income online with side hustles. I’m doing some freelance writing to earn money for us to pay off our debt.

I was recently hired by a company that allows me to write articles and get paid per word. Just with a few extra hours of work this week I earned $145 (I’ll write more about this when I create my “how to make money online” series. stay tuned!)

We will be putting the money from this extra job towards loans, but first we will be using this extra money to help us buy gifts as the holidays approach. We still have a budget and plan to be frugal, but this will ensure that we aren’t taking money away from other areas that are more important (such as our debt repayment plan). Since this money isn’t accounted for yet, it’s a great area for us to utilize to buy our family Christmas gifts!

Alright, well this is where we are for the past two weeks! Thank you for joining us on our journey.

Leave us comment below please! 🙂


Disclaimer: Some of DIY Jahn posts contain affiliate links. Also, please not that recipes, fitness tips, and financial tips are not given by a professional. To understand what this all means for you, click here

Mid-October debt repayment update

It’s been a little over a month since we began our aggressive debt repayment plan and we have an update for you all!

For the most part, I plan to give these updates on a monthly basis, but since this one is a little odd, I thought I would do it now. This one includes some payments which we won’t be able to make in the future, so it’s a lot larger than most months, but we are pretty excited about it.

At the beginning of this month (starting in early September, so not exactly this month), we had first calculated our debt. That being said, we’ve been making payments for almost a year now so we had well over $200,000, but I’m not sure exact numbers. Regardless, when we first began religiously calculating our numbers last month, we came to the conclusion that we have $196,021.80 in debt.

Let me repeat that. $196,021.80 in debt.

Does it cause your breath to catch? Probably not because you don’t have to repay it. But holy shit, it’s fucking terrifying (excuse my language). It’s a suffocating mountain and we have no idea how to get out of it. But we are working toward it.

How did we get this debt, you ask?

Well, it’s pretty easy to rack up debt these days. It started innocently enough, we both decided to go to college and get a degree so that we could get jobs in the future (what a catch 22 of our society…ugh). Anyway, we met in college. We both went on to grad school and got masters degrees. We then bought a car (used, about ten years old, but still a loan on it to pay for it). We then got married and racked up some bridal debt. Then we had credit cards that we used for emergencies and repairs and those built up too. So, that’s how it happened. Here’s a handy little pie chart you can look at if you want to see some specifics – It’s definitely not pretty.

Where our debt comes from

So that’s what happened. And what can we do? Nothing really. It happens. It happened. It’s done. We can’t go back, all we can do now is go forward.

And so we are. We are working our asses off to pay off our debt as quickly as we possibly can so that someday we can have a baby, buy a house, raise a family, be debt free. Isn’t that the dream? We don’t hope to be reach. We don’t hope to buy a beach house or never work or take monthly vacations to the Bahamas. But to own a small house and raise our future babies without $200,000 of debt would be amazing.

So, back to  business. Since we began our aggressive debt repayment journey we have repaid $7,926.86 – since the beginning of September! Woohoo! This a huge contribution for us.

So, how did we do it? Thus far we have cut our expenses and took all of our extra cash and put it toward loans. We are working on a full budget (you’ll get to read more about that soon!) and we are trying to work on gaining some extra income. As of right now, this was done mostly with extra money and a cut in expenses. We are learning to live frugally (follow our blog to learn more about our frugal living!) and stay within our means.

What does this month’s repayment do for us? Well, our debt is now down to $188,094.9 and we are one step closer to getting to where we need to be!

Here’s a pie chart showing you this months repayment!

october

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How are you working to repay your debt? Do you have ideas? Did this post inspire you? Do you have suggestions for us? Let us know! We love to hear from you! Share your stories in the comments below. Don’t forget to follow DIY Jahn for more on debt repayment, living simply, and DIY crafts that are fun and exciting!