Remember those big changes I mentioned in my July debt snowball update? Well they began and the transition between jobs has been busier than I anticipated. Sometimes life gets so busy you have to draw a line in the sand and some things – no matter how much you may want to do them—you just can’t. The blog was one of those things that didn’t make the cut this time.
August was a busy month and I found the busier I am the less diligent I am, with the budget.
I have mentioned this before, but I LOVE to budget so it is saying something that I was too busy to work on the budget. When I say work on the budget, I mean inputting receipts into everydollar, checking our income, moving money around in our budget as needed to ensure a balanced budget, and finally figuring out how much extra, if any, we have towards our debt snowball each month. I know this makes me very weird and nerdy, but I embrace that about myself. I can only imagine how easy it must be for other people who are new to budgeting or hate budgeting to get off track when life gets busy.
In August we held our final garage sale.
We are completely out of the garage sale business.
The garage sale did manage to generate a little extra income. If you are thinking of holding a garage sale, be sure to read about my tips for a money-making garage sale.
After a conversation with Brian we decided to pay down a big chunk of our debt using our expanded emergency fund. If you remember in our March debt snowball update we halted our debt snowball to beef up our emergency fund. We both feel more confident in the stability of our jobs so we decided to return to the much smaller emergency fund until our debt snowball is paid off. Dave Ramsey’s plan recommends a $1,000 starter emergency fund, but we feel more comfortable with a little bit more so we left $2,500 in ours. That decision meant a big jump in our debt snowball this month, which may be exactly what we need to keep our eye on the finish line.
When you have so much debt it can become hard to picture the finish line.
Month after month it seems like you’re chipping away, but going nowhere. When this happens to you I suggest looking at the bigger picture. Calculate up how much you have paid down in the last 12 months (for us it’s been $13,495—not to mention the $5,000 garage siding we cash flowed) and it should make you feel like you’ve actually gotten somewhere instead of running in circles.
So here’s the update for August:
Income report from August
Extra from August paychecks $0
Money from Garage Sale and Varage Sale $84.04
Ebates payout $25.00
Extra income $109.04
Emergency fund for debt snowball $8,112.43
Total towards debt snowball $8,221.47
Outstanding student loan debt $38,252.53
Past Debt Snowball Updates