February Finances and Goals

This is my first finance post, and I’m super excited to start this journey. I’m ready to be out from under this debt, and I’m excited to see our debt reduced.

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February’s pay periods are from Jan 30-Feb 12, and Feb 13-Feb 27. This is our first month of our snowball debt reduction!

Our total income this month (which does not include extra money I make from selling curb finds) is $2,749.

We have these bills (all amounts are rounded up to the nearest dollar):

  • Insurance (This includes both cars and life)                   $178.00
  • Truck Registration                                                           $45.00
  • Internet                                                                             $65.00 (this is a little higher than most months, but we had to get a replacement box)
  • Cell Phones                                                                     $42.00
  • Disneyland Tickets                                                          $99.00
  • Netflix                                                                               $8.00
  • Savings                                                                            $100.00
  • Citrus Lane                                                                      $17.00
  • Haircuts                                                                           $40.00
  • TOTAL:                                                                           $594.00

And these budgets (notice I use very broad categories… more on that later)

  • Gas                                                                                   $300.00
  • Food and Dining                                                               $400.00
  • Miscellaneous (Literally everything else)                          $200.00
  • TOTAL:                                                                             $900.00

We Owe:

  • Credit Card #1                                               $1188.74
  • Credit Card #2                                               $2516.92
  • Car Loan                                                        $10281.11
  • Truck Loan                                                     $6882.45
  • Line of Credit                                                  $466.48
  • Student Loan                                                  $9000.00 (Payments on this don’t start until March)
  • TOTAL:                                                          $30,335.70 (Ouch)

This month, our snowball payment plan looks like this:

  • Credit Card #1                                                $25.00
  • Credit Card #2                                                $44.00
  • Car Loan                                                         $321.66
  • Truck Loan                                                      $459.34
  • Line of Credit                                                   $50.00
  • Student Loan                                                   $0.00 (Like I said, payments on this don’t start until March)
  • Total:                                                               $900.00

The debt with the highest interest, in our case, is our truck loan, at a whopping 14.25% (I’m very embarrassed about that one). Following the interest snowball, we’re flinging all our extra money towards whittling away that debt first. Every other debt is currently getting the minimum payment. Once our truck is paid off, we’ll take all the money we were putting towards paying off the truck and put it towards the next highest interest debt, which is our line of credit.

Goals

  • File our taxes and put the refund towards our highest interest debt. Our taxes are filed, and we’ll be getting back around $5700. We’re planning on keeping the $700 as fun money (we’ll each get $350 to play with), and using the $5000 to pay down our truck loan. This will bring the amount we owe on the truck to less than $1500, and will reduce the amount of time we’ll be paying off our debt by almost 8 months! Woohoo!
  • Come up with a plan for our maturing CD. We have a CD that will be maturing in March, and we need to decide what to do with it. We’re debating between rolling it over into another 1-year CD at 3% interest, investing it in one of the companies we already own stock with, investing it with a company we don’t currently hold any stock with, and using part of it to pay off some of the truck. I think we’ll probably use at least half of it as a principal only truck payment, but what to do with that other half?
  • Reduce our debt by either $1,000 or $6,000. This depends largely on when our refund check comes in. Either way, it’ll also require me to make an extra $100 by selling curb finds, writing articles on Textbroker, and doing odd jobs.
  • Remain in the green this month! One thing I like about Mint is that it tells you if you’re staying within budget each month using colors. Basic, easy peasy colors. If you’re green, you’re good to go! If you’re red, you f$*&ed up somewhere and need to make some extra moolah. My goal is to stay green this month.
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