debt snowball

Emergencies – they are always out there, but if you have an emergency fund set up the emergency is usually a minor annoyance rather than a crisis. We had a couple of emergencies come up this month, but since we’re aggressively paying off our debt, we were able to reallocate money towards these emergencies rather than having to take money from our emergency fund.

Our “emergencies” were of the health care variety. I am very thankful for our health insurance, which eased the pain.

Did you know that medical expenses are the #1 reason for all personal bankruptcies?

62% of all personal bankruptcies are because of medical expenses and of that 78% of the people had health insurance.

Just because you have health insurance does not mean you are exempt from the devastating effects of medical expenses on your finances.

An emergency fund is an absolute necessity.

We found out Amelia had to have tubes put in her ears and her adenoids removed. That surgery and subsequent prescriptions cost us several hundred dollars. A few weeks after her surgery Cassidy was up all night with ear pain. A visit to urgent care informed us she had an ear infection. It turned out to be a resilient little ear infection which cost us two doctor visit co-pays and two different medicines. The tiniest bottle of ear drops cost us $90 WITH INSURANCE. Apparently, it is liquid gold!

So in April, we ended up spending several hundred dollars in unanticipated health care expenses.

Geez, I can’t imagine if we hadn’t had insurance.

We were fortunate not to have to dip into our emergency fund. We were not able to put as much money to the wedding we are in or towards our student loans. It is frustrating when these type of things pop up to slow down our debt snowball, but I’m glad that we were able to cover the expenses. We will just be set back slightly.

This month we had planned to complete saving for the wedding we are in and to fully fund our upcoming summer vacations. However, due to these emergencies, we were not able to do that. I anticipate in May we will. We were still able to put another $100 towards the wedding and $1,680 towards vacation.

As always, we were able to make the minimum payment on the student loan, which still reduces the overall amount – not much, but it’s still moving in the right direction.

As part of decluttering, we sold $62 worth of things from around our house. We also got cash back on our credit cards that we put towards vacation (a story for another day of how we are paying nearly half price for our entire vacation because of leveraging credit card offers).

Our food expenses went down, but we still aren’t hitting our goal yet. “This month we spent $784 overall for groceries and eating out. We are still a work in progress. Right now I am in the midst of the 5-week course about grocery budget makeovers. Look for a review in the coming months.

 

So here’s the update for April

Income report from April

Money from Varage Sale                                     $    62

Money from Ibotta                                              $    22

Cash back from credit cards                                $1,696

 

Total extra income                                               $1,780

 

Current outstanding student loan debt               $33,458

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