It’s been almost six months since I posted my last Money Makeover Challenge update. A lot has happened since then. We currently only have $347.40 total in our emergency fund and have paid $3,939.55 toward our debt since then. In June, my husband’s overtime hours were completely eliminated (about $1,200 a month!), and then I desperately and stupidly decided to use a credit card again. It’s time for a financial re-evaluation and a change of plan.
We had $1,000 saved in our emergency fund with our tax refund money in February. At the end of June, I withdrew $500 to go toward our final USAA payment because we weren’t going to have enough to cover the minimum payment of $317.15, anyway. So, I decided to go ahead and withdraw enough to pay it off. We also had to use an additional $152.60 total for cost of living expenses.
$1,000 – $500 (USAA, etc.) = $500 – $152.60 (bills) = $347.40
My goal for the starter emergency fund is the same: $20 per week. The only difference is my projected date to have it fully funded by. It’s going to take 32 weeks (8 months) at that rate. So, instead of having a fully funded emergency fund in November of 2018 according to the original plan, it’s not going to be fully funded until March 2019.
Debt Snowball Ledger
|Capital One Credit Card|
|$266.08||Start amount (August)|
|$266.08||Current balance remaining|
|Chase Slate Credit Card|
|$2,279.00||Start amount (February)|
|$2,036.50||Balance remaining (August)|
|401(k) Loan #2|
|$5,653.95||Start amount (February)|
|$5,176.22||Balance remaining (August)|
|Total Debt as of 08/21/18||$7,478.80|
Like I mentioned, we were able to pay a total of $3,939.55 toward our debt within the last six months. During that time, we completely paid off our USAA loan with $435.99 as the final payment! We went from $11,148.22 in debt during the first week of March down to $7,279.70 during the first week of this month.
My new goal for our debt is to pay $200-$250 total per month until it’s gone. At this new rate, it will take an additional two years before we’re debt-free, but I honestly don’t expect it to take that long if we’re frugal and can increase our income again.