Money & Frugality

Our Money Makeover Challenge #6 | A Re-Evaluation & Change in Plan

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.

EMERGENCY FUND

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

Debt Snowball Ledger

Capital One Credit Card
$266.08 Start amount (August)
$0 Payment amount
$266.08 Current balance remaining
Chase Slate Credit Card
$2,279.00 Start amount (February)
$25 Payment amount
$2,036.50 Balance remaining (August)
401(k) Loan #2
$5,653.95 Start amount (February)
$105 Payment amount
$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.

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