Each month I will be posting these Monthly Debt Reduction & Savings Statements. It is my intent to use these statements as a comparison against Our Starting Debt Amounts where I listed our debt as of January, 2009 – when my wife & I began our Debt Free Adventure – to summarize our progress toward debt free living.
Here is our up-to-date Debt Reduction & Savings Statement for May & June, 2009.
We’re a little behind on our goal progress, and need to play “catch up” like Lance Armstrong.
Our Current Goals
- Pay off our credit card debt by the end of 2009 (which started as $9,197 in January, 2009)
- Pay off our auto loan by the end of 2009 (which started as $6,036 in January, 2009)
- Save $6,000 toward an Emergency Fund by the end of 2009
- Pay an extra $50 in principle payments on both our student loans so as to pay them off early
- Pay double principle payments each month on both our mortgages (we have a 75/25 loan) in an effort to pay them off in only 15 years as opposed to another 28. **We are not going to start doing this until we pay down our credit cart debt.
Our Current Debt Progress
We have run into a very expensive unplanned expense that has cost us around $4,500 over the course of the last few months. It has caused me to cut back to only putting $100 on each of our 3 remaining credit cards, thus severely hampering our ability to hit our goals. Here is our specific debt reduction for the past 2 months:
- Credit Cards – (3 remaining) Once again, my wife had to charge and unplanned amount to her credit card. It was for a summer class she has to take once every two years that we had failed to budget for. Argh! We paid at total of $117.44 in finance charges over the months of May & June leaving us with a total of $6849.97 in credit card debt to date.
- Auto Loan – Over May & June I paid $96.43 in interest on my auto loan and reduced the principle by $343.57 lowering my balance to $5,167.57.
- Mortgage – I continued to pay double principle payments on our 2nd mortgage.
For the the months of May & June 2009, our high interest consumer debt was reduced by $963.66, from $12,981.20 down to $12,017.54
Our Current Savings Progress
Although we have not been having as much success with out debt reduction as we would like due to unexpected expenses, we have been very consistent with our savings!
- Emergency Fund – was boosted from deposits & interest by $203.43 bringing its balance to $1,038.61.
- Patio Fund – since our patio has been successfully installed, we have drained that fund, but are still contributing to it for 1 more month to complete the savings. Over the course of the last two months we had contributed an additional $651.40 in savings & interest earned bringing the total fund amount saved to $1426.82.
- Auto Fund & Vacation Fund – both increased by $50.55 putting them both at a total of $175.59.
- Side Hustle Fund – I also started my “Side Hustle” fund to put all the proceeds from my online endeavors. I do not have a business formed for them yet, and so do not have a business account. In the meantime I will continue to keep everything separate in this manner. I also plan to pay for business related expenses out of this fund, until I get something more permanent set up. Over the course of May & June the fund earned $230.02.
The total amount saved for May & June was $925.4 (which is just over 5% of our gross income) and brings our total cash savings to $1619.81
My debt reduction & emergency savings goals both continue to be lag behind my scheduled goals. This is okay because I’m still hopeful that some blessing will come my way enabling me to reach my goals. Just as I have had A LOT of unexpected expenses pop up over the course of the last 3 – 4 months… I also believe a blessing could be heading my way. If God would have it to be so anyway!
If you desire to track our progress, you can do so directly by following the MDRSS (Monthly Debt Reduction & Savings Statement) tag series here.
DFA is passionately dedicated to helping people break the bondage of debt & work toward financial freedom using biblical principles.
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