Fall of 2016, we went through a Financial Peace University Class… and then life hit hard from April 2017-September 2017. So, we’re picking up the pieces and resuming the journey by working through Dave Ramsey’s list of Baby Steps. We’re waiting to find out how changes in insurance premiums will affect us. Yep, the insurance company we filed the house claim with is changing our policy – lovely. Plus, all of our health insurance rates went up.
We also set some big goals for 2018 and you’ll find that progress listed as well.
We replenished this as quickly as we could and our “baby” emergency fund is currently: $1,002.86
Starting Debt Amount: $53,285.44
(original projected payoff – December 2019)
September 2016: $52,035.26 (-$1,250.18)
October 2016: $50,243.99 (-$1,791.27)
November 2016: $47,627.15 (-$2,616.84)
December 2016: $45,352.38 (-$2,274.77)
January 2017: $43,814.66 (-$1,536.52)
February 2017: $36,084.65 (-$7,730.01)
March 2017: $34,056.58 (-$2,028.07) – projected payoff at this point was – Feb 2019
During the chaos the debt increased: $62,211.73 (+$28,155.15)
December 2017: $47,172.13 (-$15,039.60) – projected payoff was – Mar 2020
January 2018: $45,587.13 (-$1,639.05)*
*Current projected payoff (without selling the house) – Feb 2020
Speed Bumps Encountered
- Broken Glasses – Fluke thing. Our youngest is really careful and this was totally not her fault. – $50
Things We’re Thankful For
- Annual Bonus – We received a bonus in January but we’re hanging on to the money till we see what happens with our taxes and how much we need out of pocket for home repairs to list the house.
- Hard working kids – Our kids work very hard and we are so proud of them.
- Merit Raise – Was more than we were expecting.
- Increase giving by another
- Time: By March
- Will use part of our annual merit raise to accomplish this.
Build our initial 2018 budget spreadsheets through August.– done!
- July – Complete through December.
- Have monthly budget meetings with husband. – 1/12 done
- Will set an appointment for these each month.
- Reduce the debt using the debt snowball and current payments (ave. reduction of $1,200/mo) – on target
- Time: till house sells (see below)
- Will accomplish this with bi-weekly zero-budgeting.
- Time: By August
- List house on the market by June.
- Purge stuff from every corner of the house – First floor 50% complete
- Sell and donate as much of our stuff as we can – have already begun.
- Cash flow repairs and home preparations – waiting for
bonus &tax info to set budget for these.
- Find a smaller place and pay cash to replace furniture.
- Pay off remaining debt, fully fund emergency fund, and invest 15% in retirement accounts
- Time: @ closing – hoping to reach baby step #4 no later than August
- Getting t0 baby step #4 is more important to us than whether we rent or buy for our next dwelling.
- Cash flow college expenses for two kids.
- Rework budget and set new goals once we move – update this list as we go!
Well, that was January… on to the next billing cycle.