To start with – no new progress was made on debt this month. We are still putting the debt snowball on hold due to lower than expected income. We are adding to our “crisis fund” which we hope will we will convert into debt pay-off one day.
One specific number I thought I could highlight from this month was our Vacation Fund. We planned since May to go to Washington State to have Christmas with my family. Every month, we put aside money for the vacation. From this fund, we paid for our plane tickets, our rental car, and all of our on trip expenses and purchases. We still worked to be frugal on the trip, not spending excessive amounts. We are pleased to report we were at least $600 UNDER budget. SWEET! Because you know what that means… the extra $600 goes into the Crisis Fund.
Since I don’ t have any other numbers to report, I thought I’d do a quick summary of 2012 by the numbers.
This year, we sold items on CraigsList, re-purposed gift cards, and turned coins into the bank in order to drum up some extra income. We also had several items come up that we had to figure out how to cash-flow. We cash-flowed enough money to cover a Garage Reno, an MRI, a Washer, a mattress set, and the closing costs on our home refinance. And of course, squeezed every cent we could find out of the budget for extra debt payments.
Extra income for 2012: $2,121
Cash-flowed in 2012: $6,181
Over and above debt payments for 2012: $27,304
Total Debt paid in 2012: $31,018
Amount of Debt left – Aiming to be paid off in 2013. Approximately $15,500
I look at those numbers and I think wow. You mean… we put enough toward debt to pay for a new car?
I find it SO encouraging. No, we don’t have that money to use now – but yes, we are avoiding even MORE than that in would-be-interest. And once all the debt is gone, we have already established really great financial habits which will help us reach goals like paying cash for a car a lot quicker than we ever thought we could.