Thoughts on our Debt Free Plan for 2018. The holiday's semi killed us. We had…
Operation Get Out of Debt Update
Operation Get Out of Debt Update. It has been a minute or two since I’ve done an update on our debt journey. We are still plugging at it. Once we got our van paid off (in 4 mths…which is 3 yrs early), last November, we took a bit of a break on the strictness of our budget.
Wrenches in the Plans
I had already allotted for our one November birthday (we spend $60 per child on their bday) and our 4 birthdays in February. We had also allotted for Christmas for our 7 kids, plus 2 extra people and our family. We did really well staying within our envelope frame system.
Also, we had a 2-day hospital stay for chemo and IVIG in January, a two day stay in February and a 2 day in March. We will have those continually because of the fragility of our son and his medical needs. In February we also had 2 bridal showers, for my oldest daughter. Then, in March we had her wedding.
Loosening up the Grip
So, our “strictness” had to be loosened up because of those things. We took out no loans for any of these things. We actually have been blessed with a super wonderful adult Sunday school class that donates to our travel fund to Louisville, so that has been taken off our plates and out of our budget. I am also blessed with wonderful family/friends who donated their time and talent to pull off a wonderful wedding. If it weren’t for the talents of my mom……..we couldn’t have done all that we did.
Now that all those things are off our shoulders, and tax money is in, we are back at it.
With our tax money, we allotted for our yearly expenses. They are tucked away, in envelopes, to be used when their time comes up.
- House Taxes (due in November)
- Car Taxes (due in June)
- Fire Taxes (due in December)
- Blog upkeep (due in February)
- Cow/pig (we buy one of each yearly….we may not do the pig this year because we still have lots of meat left)
- Vacation fund
- ER fund (we just got that back up to $1000 and use that only with emergencies)
With the money that was leftover from our taxes, that headed into our general savings account.
Our next “debt” we are paying off is my student loan. We currently owe $19300 and the interest rate is 6.8%
- Regular payment
- Old van payment
- Monthly payment from kids (they pay us for their cell phones and part of their car insurance)
- Big Daddy’s “extra” from his raise
- Travel checks
- Leftover at the end of the month
- Change Jar
- Any leftover from envelopes
- 1 other source of income
We are looking to have this paid off by December of this year.
It will not be easy getting this paid off by December….it does not give us much time, but we are comfortable with extending it until February if we need too. If we pay it off by December, we have to make payments of $1903 and if we hold off till February, we will pay $1608. Those seem like steep numbers, but I have faith we can do it.