We made huge progress on our debt repayment last month. Our credit card balance is below $10,000 (from a January 1 starting point of $46,000)!
Our net worth is up considerably too (over $300,000 for the first time ever!), thanks to a tax refund, a bonus, the awesome performance of the stock market, and lots of not spending money. Check out our NetWorthIQ profile for more details.
Now we just need to keep our focus and pay off that last chunk. I think we can pay off about $2,000/month, so we should have it wiped out in five months.
4 comments:
nice work! always feels good to see progress towards goals! question: how strict/disciplined are you with your budget for your family? my family is expanding and found there are a million ways to justify increasing monthly spending as useful wants but not necessarily needs. keep up the great work!
We really don't have a traditional budget. I do have a list of income and outgos that are constant, but with two kids there seems to be quite a few little things that pop up that we "need".
I usually handle these one at a time. For example, summer clothes. Instead of budgeting, I went through what we have, determined what we need, bought as much used as I could and then hit sales for the rest. The hardest part was not buying stuff we didn't need, but I don't think having a budgeted amount would have helped me spend any less.
Make a list for yourself of questions to ask when something comes up...
1. Do we need it?
2. Can we do without it?
3. Do we have something else that can serve that need?
4. Can we borrow it?
5. Can we buy it used?
6. If we buy it new can we resell it if we keep it in good shape?
It also helps me to frame up how long we think we'd use it. Some things for newborns you really only use for two months or so. Once I realize that then I know it will just be clutter in a few months and I'm more likely to find another way to meet that need.
Wow, that's incredible!
It's very inspiring. I'm a new mom trying to get a handle on our personal finances and I can't wait to get rid of our debt.
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