Financial Update: December 2015


Oh yeah! I went all-caps, and I'm still using exclamation points! December was a big month for our journey to debt freedom. We were extra thrifty with the month's cash budget and impressively, unbelievably responsible with the money we received as Christmas gifts from our generous family.

First off, at the beginning of the month, Matt took advantage of the upcoming holiday and listed more of his old video game consoles and accompanying games on Craigslist. They sold within 24 hours and brought in a total of $340. We added this to our checking account and put it immediately toward the Citi card balance, which was, at the end of November, $853.33. This additional income lowered the balance to $513.33. And of course, we also paid our usual $50 minimum payment to Citi, which then brought the balance to $463.33.

$463.33. Such a measly, attackable number. Once we received our paychecks for the month, distributed our income to our cash budget, and paid all of our bills, we had $750 left to use in our snowball. We could totally take out the Citi card this month and have money leftover to start chipping away at the Chase card!


We remembered.

We have our auto insurance set to auto-renew itself every six months. And on January 2, 2016, it was time. For our two SUVs, it amounted to just over $394, which would wipe out over half of our left over snowball money. We wouldn't have enough to pay the full Citi balance.


But, 'twas the season of giving, and our family blessed us tremendously with loads of cash (on top of several large, expensive gifts, like a miter saw and a bike from my parents!). I'm too stunned and overwhelmed to even type what the total amount of money we received was. We were both near tears. (Well, I was in tears.) I'll just say that, combined with our leftover income debt snowball money, the cash from his grandparents and both of our parents gave us enough money to:

1) Pay our $394 auto insurance in full,
2) Deposit $100 into a savings envelope for unforeseen medical expenses,

Our debt snowball is officially rolling now!

This month, since the Citi card is history (YAY), that regularly scheduled $50 minimum payment will go straight to the Chase card, on top of it's already regularly scheduled $50 minimum payment. So there's $100 a month right there.

Paying off that first shared credit card was such a positive, hopeful way to conclude 2015!


Regine Karpel said...

Good job.

Anonymous said...

Wow!! That's over $5000 of debt since around September, right? That is an amazing accomplishment. Keep it up! AMPS

Laura said...

Congratulations on paying off a credit card!!! Once that snowball gets rolling things go fast! You'll be amazed at how quickly you pay off the next thing... and then the next!

Lacey said...

YAY! Good job, that is so rad! You must be so motivated with that progress!