I hope everyone had a lovely Christmas and New Years! To keep us accountable and honest I’m going to post the numbers at the end of each month. This way we’ll see how we’re doing on our debt freedom journey and you will hopefully be encouraged by our progress.
Income: $4680 (actual $5736)
Savings: $120 (actual -$70)
Debt payment: $1083 (actual $1462)
Thanks to Christmas bonuses and a few side hustles, our income was nearly $1100 more than expected. This should have equaled more money going to savings (instead of minus $70, eek!) which means we need to be more diligent about paying ourselves FIRST. However, I’m extremely proud of that extra $380 debt payment, which brings us to the next category.
In December our debt avalanche went to my Banana Republic credit card which had 2 months left until payoff. But when we saw that we only owed $380.01 after our avalanche payment of $669 we jumped at the chance to start the new year with one debt wiped out. Debt number one is paid off! Yes yes yes YES!
As of January 1st we owe a total of $12,434 and some change. Sadly after $1462 in payments this is almost exactly what our balance was at the beginning of December due to Christmas shopping. We will not be making that mistake again!
We are setting our sights higher this month, with a savings goal of $175 ($100 to emergency fund and $75 to Christmas sinking fund) and a debt payment goal of $1310. When we break it down that’s the $669 avalanche from last month + $435 minimum payments across five credit cards + an additional $206 avalanche. We are digging deep!
Despite the Christmas setback we are still projected to be debt free in November 2018. Be sure to check back next month to see how we did with our January goals!
Did you achieve your December goals? Tell us in the comments below!