How did we do in July and what do we hope to do in August?
From a previous post….
What do I hope to see for July? I’d like to see a couple of things. Our smallest debt (a Visa) is now at $4,459.91. I’d like to see that get below $4,000. There is just something psychological about seeing that first 4 change to a 3! Secondly, I would like to see us hit the 10K mark of debt paid off.
I am pleased to write that we did accomplish our goals for July! I’m not sure why, but while getting our smallest debt below $4,000 felt huge, hitting the 10K mark in our debt payoff didn’t feel quite like I had anticipated. Yes, it is a fantastic accomplishment, but for whatever reason, I wasn’t quite as excited as I thought I’d be. I’m honestly not sure what I expected. It is all good, though. We will continue on no matter what we do or don’t feel with each passing milestone!
As for the numbers, we managed to pay off $1,207.27! Given the challenges of the month, I am happy with that number! Our smallest debt is now at $3,931.92, and our overall total of baby step 2 debt is $45,281.45. In just seven months, we have decreased our debt by a grand total of $10,468.24. Not too shabby for a couple who had mismanaged our money for far too many years to count.
So what are our goals for August? This was a bit of a challenge to set given that my seasonal position will be slowing down to a snail pace. We would like to see our smallest debt below $3000, which means paying off almost a grand. If not for an expensive repair bill in July, we would have had more to throw at this debt. Since I still have a few small checks coming in from my job, now is the time to push even harder at slamming this debt. I’m praying for a smooth month ahead so we can accomplish this goal!
We also plan on starting a “cash sinking fund” with a goal of having $1000 saved by the end of the year. This fund is for our yearly auto tags, snow plowing, and semi-annual trash bill, all of which I can pay in person with cash. We have also scheduled an additional $25/week to automatically transfer from our checking to savings to cover irregular expenses (life and auto insurance) that we pay online. I’ll be kickstarting our cash sinking fund with a snowflake earned from working the polls next week. We will review these allocations during our monthly budget meeting to make sure we are on track. Winters have always been difficult for us, and I want to avoid those same challenges this year.
How did you do in July? Were you able to eliminate debt or add to your savings? What do you hope to accomplish in August?
Wow. You guys are doing great. Paying off $10K+ is nothing to sneer at. Great job!
Thank you, Cindi! $10K+ really is a lot of money!
Wow! Nicely done! Destroying >$10K of debt in seven months is an enormous accomplishment.
We need to start building a Sinking Fund account. I guess right now we’re using the emergency fund for that purpose. August is going to be a SUPER tight month for us… My husband just started a new job, and with that comes all of the bumps associated with a new payment calendar. I am hoping we can get through it without having to dip into savings. We’ll see!
Thank you! Sinking funds have been our nemesis since starting our journey. For the most part, we’ve been fortunate to cash flow what has come our way, but it has made me uneasy. Our snowball will take a hit with putting this in place, but having it will be peace of mind.
I hope all goes well with the new job! Hang in there while the dust settles!
Thanks so much! 🙂 It’ll be a challenging month – but hopefully in a fun, we-can-totally-do-this way.
The 76K Project recently posted…One Step at a Time: We Paid Off Credit Card #1!
Determination, my friend! I tell myself the challenges just make us all the stronger!
Lucy, Congratulations! I think paying off $10k in 7 mos is outstanding. The sinking fund is a great idea. I do this also for Christmas and our homeowners insurance. As we get closer to retirement, I will re-evaluate and will probably add some extra categories, like you are doing. Keep up the good work. 🙂
Thanks, Chris. I guess as the months go by, I just want it gone! This journey is a true lesson in patience! Today is the day I am tackling our sinking funds and what should/could go where. The challenge is real!
The sinking fund is a great plan. I have it for a couple of items, but last month I added more to it for annual propane and our quarterly garbage bill. I don’t know how long your kids have been adults and on their own, but did you find you budget got so much better once you weren’t supporting them? Our youngest got on her own a little over a year ago and it’s been nice for the budget.
OneFamily recently posted…Extra money
Sinking funds are something I desperately need to get a handle on. So many benefits of having it in place. We have two kids who have been on their own for several years. I do remember a huge decrease in our grocery and utility budget when they moved out.
Won’t be able to do my July end-of-month until we get home but I know it won’t be pretty. lol Had to pay 2 months of medical insurance premiums ahead plus our c/c bill for this trip will be HUGE!
Things will even out in the end but I am glad we don’t have debt at this point. -)
Sluggy recently posted…This Week on the Dining Table
Yes, but think of the fun you are having! This also goes to show the rest of us how truly freeing being debt free will be! Enjoy your trip!
What a great milestone! I hope you can reward yourself and Hubs with a small token of accomplishment next time he is home.
I’ve been giving some thought to this as I think it would also give us something to look forward when reaching these milestones!
Lucy recently posted…Sinking Funds