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Serious Beginnings
In March 2016, we started using Dave Ramsey’s Everydollar App. Using this app has allowed us to create a zero-dollar budget. We also can analyze each month our Income, Expenses, and Debt. Throughout the year, our focus was on building our Emergency Fund of $1,000 and learning the art of budgeting.
By Summer of 2017, we had been able to successfully build our Emergency Fund and when emergencies happened, we were able to rebuild the emergency fund. We were now able to move to Baby Step #2 which is the Debt Snowball. The Debt Snowball is when you begin paying off your lowest balance debt first, then keep moving with along paying off the next lowest balance debt.
In September 2017, we paid off our first lowest balance credit card which ended up being around $232.51. In October 2017, I received a small bill for the interest incurred the previous month for this same credit card which totaled $4.79. By the end of October 2017, we had officially paid off $237.30.
Small Setback
In November 2017, my SO was laid off from his work. Fortunately, we were able to receive Unemployment Insurance but it was only half of his regular wages. During this time, I received a raise at work which helped us maintain our monthly bills but did not allow us to pay towards anymore of our debt. The great thing is that we never had to dip into our Emergency Fund. During this time we stopped any extra subscriptions and cut spending in other areas.
New Horizons
Fast forward to February 2018, we officially were able to pay off our next lowest balance credit card. We used a small portion of our tax return to pay off the $154.52 balance. To celebrate, my SO took the liberty in burning the credit card. Find an image of the card after his burning session below.
This will now add $25.00 extra a month to reducing our Debt. To help us create an action plan for paying off our debt, we are following Dave Ramsey’s debt snowball concept. In addition to following his concept, I will be actively looking for ways to make extra income to put towards our debt.
With me working a full-time job and having a family, my time capacity is limited. With this limitation, I am looking for alternative ways to increase income. By cutting spending, selling items that we own, completing side jobs and utilizing money making websites like online surveys we hope to help supplement our income. This extra income would then be put towards our debt.
What have you done to cut your spending and to increase your income recently?
