I’m always messing around with my spreadsheets and making new scenarios for this debt pay down. Well I kept tinkering with it because I was coming up short on being able to pay the auto loan in time.
Well I forgot about the snowball. (duh! such a dork sometimes). once the Emergency Fund was back up to par, that money would then go towards paying off the auto loan in time. Which brings me to the next part.
Remembering the last part and repurposing a small savings account ($500) recently has now made it possible to add the new plans of saving up for what I am calling a “generational growth excursion”. I realize some people may not agree with that. And I totally get it, as I have $70,000 of debt to pay off. I argued with it myself for a while. But this is an opportunity of a lifetime I couldn’t pass up for various reasons. Here me out: it will be the first time I am paying cash for a large purchase. None of the excursion is being paid on credit. And what is needed beyond the $3,000 will be raised:
- asking friends and family to donate their recyclables to us
- setting up for weekend hire (garage cleaning, painting, mow the lawn, car washes, etc…)
- grocery shopping trips – earning 5% cash back rewards with immediate payoff
Even with the mentioned above, the budget would still need to be whittled down a bit. Here is what was revised on the monthly budget in more detail:
- clothing budget – $50 brought down to $0. This will be tough not buying any clothes. The child has mass amounts (even though she says she has none). And I can buy anything needed from my personal allowance (I am gong to stretch my $20 bi-weekly faaaaarrrr). Maybe I can participate in a clothing swap and/or hope for gift cards & clothes gifts when holiday or celebrations arise.
- Household/Food – $700/m to $650/m – savings us $50/m. This adds some restraint, but will not be too much if eating out is done rarely and work meals continue to be packed. So far in the last two weeks, we have not been out to eat at all.
- Cellular x2 – $100 to $85 – $15 savings per month. I happened to log in to see what the most basic plan was for data on the prepaid phones. At least for my phone since 90% of it tethers off wi-fi. Well, we are at the lowest plan, but found my provider lowered the plan rate for whatever reason. Glad I checked it!
- Internet/Ph/Cable – The $35 savings is tentative right now. I will explain in a future post when I get it set up. But essentially it’s moving my house phone to Google Voice (free) with the use an Obi phone adapter (one time purchase). I’m not stranger to Google voice – been using it for years – as its a great way to provide an alternative number to dates or businesses. I didn’t connect my home phone before because there was talk that years ago that GV was going away. But now I hear its not. Once installed, I will rid of the the cable once again. Leaving the house with wi-fi only at the “standard” rate (these companies drive me crazy).
Total added savings per month: $115
with potential to save up to $150 (aka $1,800/yr).
Other: re-purposed savings account became the EF account; sinking funds account became the excursion fund account and dropped automatic transfers down a $100/m; added annual payments (aka, sinking funds) as a line on the expense report for now. but will be dropped into the EF account. really I just need to set up the money to be automatically transferred.
And that my friends, will just have us skimming by in November to make $7,000 in debt be paid off and $3,000 available towards an excursion equaling $10,000 I never thought I had to pull a trick like this.
ps – I would show you my debt payoff calculator scenario, but I want to leave an element of surprise to the amount snowballed this month. will post when all is past tense in the next week or two. :)
pss – I know you’re asking, “but what about paying the $2,394.40 of student loan interest before the deferment ends?” I’m using a 3rd paycheck in December to kick that too the curb. I never knew I had such monies. Focus works (hope I can keep it up all year).