Payoff: Month 16

March:

cc 1,2,3,4,5: 0


Loan 1: 0
Loan 2: 5631.85
Loan 3: 8471.92

Debt: 14103.77
Paid: 758.34


April:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 5071.85
Loan 3: 8264.50


Debt: 13336.35
Paid: 767.42
Total Paid: 30571.53

Added to savings: -5000
Total savings: ~13600

YAY! for crossing $30,000 paid (Finally)!
A word on savings: We owed $3500 in federal taxes. My husband took out $5000 to cover the taxes. We should be able to repay the difference ($1500) plus what we would otherwise be putting in savings ($1600) and our state refund ($500) for a total reconciled (but not actual as of this moment) savings of $17200. I think we will hold off on this for now incase the little guy comes early. We anticipate hospital/doctor costs of around $1000 and a savings amount of $1600 in May. Total projection for May is $17800. Our debt at that point should be roughly $12,500, allowing us to pay it off with around $5000 left over.

Payoff: Month 12 & year end review

November:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 7871.85
Loan 3: 9264.81

Debt: 17136.66
Paid: 769.43

December:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 7311.85
Loan 3: 9071.73

Debt: 16383.58
Paid: 753.08


Total Paid: 27524.3

Added to savings: 1600
Total Savings: ~8850

We finish out the year with 62% of our debt paid off. We have almost $9000 saved now, which would have gone on our debt as well (proving we would have wiped out at least one more loan at this point). This is an average of just under $2300 in debt repayment per month (not including our additional savings). Under the current circumstances, I cannot quite predict a projection based on this information. We will not be able to put that much per month going ahead, and I am not sure how much of our savings will be used by the time I come off maternity leave. My soft goal is to have the debts paid off by this time next year at the latest, but that will move as other things become more clear. I am confident that if we had proceeded without pregnancy, we would have met or exceeded the April 2011 goal. I don't have the actual paperwork on this with me right now, but we have also paid off around $14400 in mortgage principal this year as well. I will try to remember to check on that and update it.

Payoff: Month 11

October:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 8431.85
Loan 3: 9474.24

Debt: 17906.09
Paid: 750.66


November:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 7871.85
Loan 3: 9264.81

Debt: 17136.66
Paid: 769.43

Total Paid: 26771.22

Added to savings: 1750
Total Savings: ~7250

As you can see from the last couple of posts, we have scaled back on our debt repayment. I am currently paying $560 to loan 2 and $250 to loan 3. Anything else which would go to these loans are going into savings. Our savings should start building quickly. I will have the OB paid in January, but I still don't know what the hospital will cost or how my maternity will work out. Once all that is taken care of, we will pay the debt again with whatever is left.

Payoff: Month 10

September

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 8991.85
Loan 3: 9664.90

Debt: 18656.75
Paid: 1995.93

October:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 8431.85
Loan 3: 9474.24

Debt: 17906.09
Paid: 750.66

Total Paid: 26001.79

Added to savings: 2000
Total Savings: ~5500

Payoff: Month 9

August:

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 11100.83
Loan 3: 9551.85

Debt: 20652.68
Paid: 2592.48

September

cc 1,2,3,4,5: 0

Loan 1: 0
Loan 2: 8991.85
Loan 3: 9664.90

Debt: 18656.75
Paid: 1995.93


Total Paid: 25251.13

I think I flipped what is loan "2" and "3" again. We paid less this month in order to bring up our waning bank balances. We also had an event over labor day weekend that I budgeted money for. We have crossed 25,000 paid ! We paid off the small loan! We have two loans and less than 20,000 left! This would all be very exciting, however, with the baby on the way we will not be seeing much movement in the debt in the coming months. I will start keeping a tally of our savings now. The goal before was to have all debts paid by April (my 35th bday). Now, we will save that money instead, and should be able to pay my dad off right after the baby is born, and pay the last loan by next December, depending on costs associated with having and daycareing the baby.

This changes everything.

Wondering where I've been?




Quite the surprise. This is me hoping no one I actually know reads this. It took three months. While they were happening, it was starting to feel long and tedious and like it was going to go on forever. I am sure helping that along was my belief that I was not going to be able to get pregnant on my own. It is really really early. I haven't even gotten in to a doctor yet. But the tests keep getting darker and darker, and there hasn't been any blood, so I am cautiously optimistic.

Even though we had been trying for a few months, this is really the first month I was comfortable with it happening, as we are past the halfway point and have only the two debts left. Each month it took meant more debt paid off. I've been recalculating and I think we can still be debt free by the end of 2011. That is really hard for me, since we were making such progress, and it is scary adding this new, expensive, person, so late in life, with no safety nets or fabulous retirement accounts. All I can do is hope that we know enough now to make good choices and let everyone else buy us the expensive stuff :) and give up our toys. Priorities change.

We are going to finish out the month on paper as it is (with a big payment to the student loan), but I am afraid after that the debt repayment is going to stagnante for a while. We will start building up our emergency and hospital fund instead. Hopefully after the baby comes, we can make a large lump sum payment to one of the loans.

No one knows. It is really hard keeping my mouth shut.

August Budget

Revenue:

I had an extra paycheck this month.

Fixed Expenses:

I was being ridiculously optimistic about power. Termite due this month.

Debt Repayment:

Pay off Student loan #1! Minimum payments to #2 and my dad.

Variable Expenses:

I gave us raises on our personal amounts this month. I put in a clothing budget (finally!!). I am desperate for new underwear. My panties all have holes and are unravelling. My underwire has popped out of my bra and is giving my bruises in my arm. Also, as we approach fall and winter, I desperately need work appropriate winter clothes. I wore the same four sweaters from November - March last year.

Funds:

Lowered our repair amount to help cover our trip and the clothing. I wanted to put all of my extra paycheck into savings, but gave some of it to cover other things.

May Income Statement

I really have to say, at this point, after doing this for a few months, that I really don't understand how we keep having such large net incomes. It isn't like we are gaining $2000 a month. I suppose it is from our bank balances, but even those aren't really that high. We each maintain about $350 in our accounts throughout the month. Maybe it is because we get paid at the end of the month, and haven't spent that money on bills yet when the statements are mailed? It does make sense that the end amount is $400 less than the beginning balances, because I think I got paid an extra $400 at the end of April, which we saved to pay for our hotel in May. I don't know... I just don't want to give the false impression that we are rolling in dough or that we aren't busting our budget every month, which we usually are.

Extra revenue: Birthday money

Expenses:
Yay low power! We over paid cable last month, so it is a little under this month. Termite due this month. I think netflix was double paid last month, or else I just missed it on my statement.

Debt:
Standard stuff here.

Variable:
Restaurant was high because we were out of town and had a couple of unplanned lunches. Most of our meals during the trip were covered by one relative or another. Supplies were high ... I have gotten into CVS ing. Unfortunately, some trips I get out of there for under $1, some are more like $20.

Additional expenses:
I spent almost $200 making my cousin's programs for her wedding, but my aunt offered later to reimburse me for that, which was great! That will show up in July, I think. The rest of the expenses for the wedding included our hotel, parking at the airport, and some last minute outfit additions.

Fund activity:
I have been struggling with how to handle planned expenses in the budget. I keep a separate spreadsheet with the tallies for our funds. Most things I just leave off altogether, like the boy who cuts our lawn, or our cleaning people (which my mom paid for as our Christmas gift). But I feel that I need to keep a true account of our expenses, and I also want to celebrate the fact that we actually were prepared for some things. The money isn't technically coming out of our monthly income, it is coming from our savings funds for that purpose. So, I have added "fund activity" at the bottom of the IS.

This month we took from two funds: I show the balance of the fund, the amount removed, and the new balance.

From repairs, we paid for our roof repair (YAY!) and also 2 new tires for my husband's car, since one was completely flat. From pet, we paid for my dog's boarding for our trip, which somehow tripled in planned amount, because he also had a checkup and some medicine added on.

April Income Statement

April Income Statement

Revenue:

I got an extra week's paycheck at the end of the month, which was actually brought forward to pay for the hotel in May. My inlaws paid my husband back for his expenses to travel there.

Fixed Expenses:

Power is finally going down a little bit. We couldn't find the cable bill, and even though we pay the same amount every month, my husband overpaid on purpose. Insurance is super high because we got charged 3 installments on our auto insurance and my husband and I both got life insurance. I had thought we would be charged monthly for that, but we were charged quarterly.

Debt:

We paid the planned $2000 to the last credit card, as well as the $800 for the travel expenses which were put on the card.

Variable:

We were able to include a travel fund again. The pet amount includes the $150 for the fund as well as $200 spent at the vet on the dog for his shots and grooming. We forgot to take cash. I sorted all the funds out in May. I keep a separate spreadsheet with their ins and outs and actual totals. Supplies was high this month. We did some work on our basement, which required some supplies and I needed some supplies for other projects. Bank fee was the finance charge on the credit card. My husband's discretionary was super high. He got his WOW renewed for 6 months. He also cancelled a subscription, but in the process had to pay for several issues at once. Or something.

Savings:

Not surprisingly, we had nothing for the sinking fund this month. $900 in the bank account was earmarked for repairs.

April special circumstances:

A couple of my husband's charges from his parents carried over onto the April statement. We owed $2000 to the federal taxes. We moved money out of savings to pay for that. Then we got $874 back from the state. I want to pay back the $2000 to savings, but as of yet we have not. I have really just been holding my breath to get through May, but now will look at that.

March Income Statement

March:

Income: Standard.

Fixed: Power is still high. Trash bill this month. My husband says they are redoing the trash system here so that it will be included in property tax and will also pick up more recyclables, which will be fabulous. They tried this last year, and it failed, so we are hoping it passes this year. Water was high. We have some plumbing problems we haven't addressed yet, and some leaky toilets. But, it's only like $5 more than usual... Our insurance (car) was crazy low this month. With all the roof stuff, my husband also spoke with them about some discounts he thought we should be getting, and reduced our price. I guess they were crediting us back or something? I really don't know.

A note on Bally's: I have started going back. I am trying hard to lose weight (for the wedding, and pre-baby) and am working out 4 days a week now. 2 at Bally and 2 at the gym at work. I'd like to also do wii fit on the weekends, but haven't gotten to do that yet. It's been pretty busy. I have lost 4 pounds so far. So, I am keeping Bally's for now.

Debt: Paid off my credit card. I now own a lot of veterinary work and all my dollstuffs and my transmission. Only $1000 to cc5, to allow for us to save for the roof repair. Minimums all around.

Variable: My car renewal was due. Two cats got shots. The repair is for the power guy who came out when my house lost power. I spent some extra money going out with work and friends this month. Bank fees are finance charges, as usual. Our Misc. was high this month, too, and I don't remember why now. (my book is downstairs)

Saving: $59 to sinking fund. $900 for the roof.

Highly unusual expenses which get their own category this month: My husband spent money to be with and help out his parents. They paid him back for this (but not until April). I bought and mailed invitations for my cousin's rehearsal dinner, which I had budgeted money for. I also bought shoes for my dress.

And, we still made it out with $20 to spare.

Mid month update

Happy tax day!

We had to pay $2000. But we are also getting $800 back from the state. Had to dip into savings for this. I think this has something to do with our mortgage set up right now. If'n we refi soon, maybe it will straighten itself out. I have tabled the refi for now.

We have had an estimate for our roof, and another one coming next week. They think it was a bullet! I forget exactly, but it was around $850. The people coming next week can also do our siding repair (which is probably from settling), so I am waiting to see what that looks like. We have about $1000 saved for this, and I want it done already.

Counting down to my cousin's wedding. I get an extra paycheck this month, which should cover the hotel. We also have $200 in the travel fund, and the $400 in the sinking fund to cover any other expenses. I don't expect many, but we will have parking and miscellaneous spending. I still need to get a gift, too.

My husband needs new tires. Like, one if his tires is literally completely flat. I still haven't worked out how we are going to pay for this.

The good news is, my husband's boss called him last week and gave him a promotion and an 8% raise. It seems to amount to about $360 more take home a month. It was shocking how quickly I found places for that money to go. I had so many things I wanted to fund, and hadn't yet, that the whole thing is not going to debt repayment, as I might like. Starting in May, We will begin a car fund. Both our cars are old, and I am holding my breath that they will both make it another year (let alone long enough to save for another one). My husband's car is ten years old and has over 150,000 miles. I gave us each a raise in our personal money. I think we deserve it. We have had very little fun money. Now we are up to an amount we can actually use for something we want. I doubled what we are saving for our lawn boy - both because we are going to start needing him again, and because I expect his rates to increase again this year. The rest seems to be ironing out things that were getting ignored in the budget, such as the bills being charged on our cards and the quarterly bills. It doesn't last long. But it is good to have. I am just disappointed, because somehow I thought we could get our debt repayment up to 2900 a month, but I guess that was not a realistic figure. I was not accounting for things properly.

I am also struggling with the fact that I am "saving" about $500 a month into these funds. I could pay things off faster if I didn't. But I feel better knowing that we are building money towards these things, should they happen. Our travel and pet funds are about to take another hit. The repairs we have are outpacing what I am saving for them by far. I have decided to put caps on some of these things. If I manage to hit the cap, then I can cut back the saving there until I have to use the money.

February income statement

February income statement

Revenue

I got an extra week's pay in one of my paychecks. My husband deposited some birthday money. I believe some of the bank balance is for our March mortgage, but I am not quite sure. It just seems high to me.

Fixed

Power was super high. Just look at that. Ugh. We had some snow and some very cold days. We are finally seeing the lowered cable price, though that does include a partial refund for the month, so future cable should be around $80. I still think that is super high for the basic stuff. We had our termite bill for the quarter.

Debt repayment

Just when I thought #2 was paid, it hit me with a $5 interest charge from the previous month. I now have that paid off again. I own my carpet (#3). We paid off most of cc#4 which is my main card. I was going to pay the whole thing, but then the fiasco with the roof, and I opted to save some money for that instead. That was a very hard decision to make. Minimums to all else.

Variable

Most of these are discussed in the cash jar post. Some highlights: Pet. Is very high, because we adopted our dog, and purchased items for him. This figure includes the money we also still set aside for the pet jar. The only thing I can say for myself, is I did that all with cash. Mostly money from my extra paycheck that month. We bought our convention tickets for this summer, so that is set. Bank fees are finance charges. Other than the dog, we really stuck to (or below) our budget for this month.

Savings

We added $120 to the sinking fund from the cash jars for the month. We saved $500 towards our roof repair, instead of paying off a credit card.

Looking back, I am not sure I calculated the bank balances properly, and we way overspent on the pet category (and power!) but we came out positive and did really well overall, I think.

On Dave Ramsey

So, I had never heard of Dave Ramsey before I started doing some reading and research about debt - then the name was everywhere. I happened across him on TV one night, and since have been watching him every night and listening to his radio program while at work. He has a little too much religion in his finances for my taste, but his financial advice is sound and I have only disagreed with him a couple of times. I like to try to guess his answer to the question before he does. I find him very inspiring and he keeps me revved up and focused on my goal. He makes me feel like it is possible.

I am rethinking my plan. I had the same basic idea - to tackle the debt smallest to largest, and to build emergency fund, but I was trying to do it all at once, and I didn't want to just pay minimums on the larger debts. I have done 100 different spreadsheets and the thing about his plan is... we get out so much faster. We can be out of credit debt in July, and loan debt in May 2011. And then have over $20,000 saved by the end of 2011.

The thing that worries me about it is the combination of not having much savings and not using the credit cards. I am scared we are going to run into some areas where we may need to use the credit card if we don't have the savings built up. We already know we need roof work - we don't know the extent yet.... We also have some plumbing problems. And two old and rickety cars. We have an out of state wedding to go to in May. It is really stepping out on faith to try to tackle these things without credit or savings.... I guess we will do what we can now and cross these bridges when we get to them.

The numbers:

What and who we owe (as of last statements):

Husband's credit card: 5205.76
My Credit card: 3509.91 (eek. I already know that is lots higher now)
Other credit card: $549.69
Best Buy: $300 - some odd dollars (we don't get paper statements. This is the remainder of my computer which must be paid off by June)
Carpet: $1542 - we have 12 months to pay this off

Total Credit card debt: 11107.36
This is the minimum debt I intend to have paid off by the end of the year.

Other Debts:
These debts I consider Long Term Liabilities, since they are intended to be paid out over time and we are on payment plans for them. Once we get to a point where the other debts are paid off and we are living on cash, I will reevaluate increasing our payments to these loans.

Student Loan 1: 10449 As of last statement. This may not include my final term loan and the return of overage money from the school.
Student Loan 2: 5011.84
Personal family loan: 16063.72 I think (I may be off a month or two)

Total loan debt: 31524.56

Total debt: 42601.92

Oh, and that doesn't include our mortgage, which is at about $260,000

Savings: (Not including retirement, because I haven't even looked into those numbers yet and they are fluctuating wildly.)

My savings: I just locked myself out of my account. Great. It's around $2000
Husband's Savings: 4227.61

Total Savings: around 6000
Emergency savings goal: min $32,000
Min Goal by 2011: $8000 + 6000= $14,000

I will discuss all of this in greater detail over time.