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.
But here’s a little infographic to help you see 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.
Here is our November debt pie chart which resulted in our total debt becoming:
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:
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! 🙂
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