Money & Frugality

Our Money Makeover Challenge #12 | May 2019 Emergency Fund & Debt Snowball Progress Report + June’s Goals

EMERGENCY FUND/SAVINGS

We started with $1,580.80 in our emergency fund at the beginning of this month and have saved a total of $1,489.20: $225 on the 3rd, $569.20 on the 9th, $225 on the 16th, $220 on the $24th, and $250 on the 30th.  We now have $3,070!  At this rate, we’ll have our emergency fund fully funded in no time and be able to focus our income on other goals and fun activities for the family!

We started with $125 in our Christmas sinking fund and have saved a total of $125: $25 on the 3rd, $25 on the 9th, $25 on the 16th, $25 on the 24th, and $25 on the 30th.  We now have a balance of $250.

We started with $75 in our 10th anniversary sinking fund and have saved a total of $125: $25 on the 3rd, $25 on the 9th, $25 on the 16th, $25 on the 24th, and $25 on the 30th.  We now have a balance of $200.

DEBT SNOWBALL

We started with $4,405.83 in debt (401k loan) at the beginning of this month.  $26.25 is deducted from Ashton’s paycheck every week to repay this for a total of $131.25 paid during this five-week month.  We now owe $4,318.49.

I’m thinking about eliminating this final debt even sooner than with next year’s tax refund – maybe by November 2019, which will mark the 2-year anniversary of our Money Makeover Challenge.  By then, we should have about $9,000 in our emergency fund.

According to the amortization schedule, we’ll still owe $3,831.77 at the end of October.  I would transfer $3,800 from the emergency fund and be able to cover the remaining $31.77 from our income.  We’d be debt free and still have a fairly hefty emergency fund, then we’d jump right back onto baby step three (the 3-6 month emergency fund).

JUNE GOALS

Savings

Emergency: We won’t be able to save as much for the next few months.  Summer break is in full effect and childcare costs (summer camp) are high.  My goal is to save $50 per week during this tight time period and resume $225 per week once the children are back in school.

Christmas: Continue to save $25 per week.

10th Anniversary: Continue to save $25 per week.

Debt Snowball

Remain current on the second 401(k) loan, which is automatically deducted from Ashton’s paycheck at $26.25 per week ($105 total per 4-week month).

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