At the end of January, our progress on paying down our debt was pretty good. We paid off $15,000 of debt, for a new balance of ($31,000). Almost all of this was done through one-time activities, like applying the excess we had saved for property taxes to the debt, selling assets, or simply reallocating money that had been saved for another purpose to debt repayment.
February had an additional one-time occurrence of receiving our state income tax refund. Our balance at the end of February is $28,000.
Mr. Savvy's work has been sporadic, to say the least. His employer was stringing us along most of January and February, but it seems as of last week he should be back to work for a few weeks at least.
In order to speed up the debt repayment process, we have reduced my 401(k) contributions down to the minimum required to receive the match. This isn't something I take lightly, because for the last 8+ years, since the day I started my job, I have contributed the maximum allowed to my 401(k). The good news is that this is temporary and since we already have a nice start on retirement savings it shouldn't have much of an impact on us.
March will have a couple more one-time items, like a bonus from work, our federal tax refund, and possibly more selling of assets (stocks).
1 comments:
Congrats on the progress!
I stopped my 401k to pay down debt, it was a tough pill to swallow.
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