I hope everyone is having a fantastic week thus far!
I want to start doing a “month in review” here on BAD to clue everyone in on what’s occurred during the previous month. I think this will help summarize what’s going on in my life as we move forward on my debt reduction journey and allow people to quickly get up to speed that didn’t catch my weekly updates.
To summarize, A LOT occurred in April:
- I began the month (technically it was March 31st, but let’s call it April) by telling you what’s been bothering me even since I started my hardcore paydown (read it here). This was the hardest to write but most heart felt post to date. Update: I’m starting to realize time is more important than money and or gifts, and spending time with people and giving them a minute or two every couple of days is priceless.
- I vowed to help my sister by contributing to a 529 in my nephew’s name (read it here). Update: I officially opened up an ESA (not 529) account in my nephew’s name over the weekend. The first contribution will be this Wednesday.
- In the same post, I decided to re-contribute into my company’s 401K plan (read it here). Update: All the paperwork has been filed and I’m set to start contributing 4% (giving me the max. 2% company match, as well) of my paycheck this Wednesday.
- I also decided to start budgeting for $50 of “fun” money per month to use to go out with friends (read it here). Update: I’m going to set the $50 aside on the 2nd Wednesday of every month for the following 4 weeks. I don’t have any other bills, except my electric due at this time.
- I came across a roof leak in our house and freaked out! (read it here) Update: I haven’t opened any ceilings yet (mostly out of fear) but it’s been dry now since the day I ventured upon it. We’ve had some pretty good rainstorms already this year, so if it was from rainwater, I feel it would still be wet. My hunch is still ice dams.
- I got a work bonus and a raise! (read it here) Update: The bonus was quickly put into my savings account. The raise has amounted to $17 a paycheck, but every additional penny helps.
- We (GF and I) finally got around to celebrating Valentine’s Day, while also doing a fun little getaway up in Buffalo, NY (read it here).
- Lastly, I got around to putting our summer plans down on paper (read it here). It may not seem like much but I have a feeling it’s going to be a busy one this year!
For those interested in where my budget shook out:
I had some major expenses this month: 1) a tax bill close to $200. Since my I didn’t pay enough taxes last year to match my income (which was greatly increased due to pulling out my retirement fund), I owe the state of PA estimated quarterly taxes this year. 2) Our get-away cost nearly $400 in total 3) I spent more for groceries and dinner than I normally do. After my post to kick-off the month, I’m not too upset about this.
In debt reduction notes:
I reduced it by OVER $2,500!!
Pretty exciting stuff.
However, all good news aside, I had thoughts last week of stopping my debt reduction pay down altogether (obviously I’d still pay the minimums), which would have also meant writing for BAD, too. As I was sitting my car thinking about everything, I couldn’t help but wonder if instead of throwing every extra cent at debt, if I threw every extra cent into my savings. It would build quickly, giving me a large enough windfall to get through any obstacle, and when the balance was big enough, I could use it to pay off all the debt at once, alleviating my stress while giving me comfort that I won’t be in debt forever. After talking it over with GF, the feeling came to pass. With savings interest rates so low, it wouldn’t make a ton of sense mathematically, but, as I’ve always said, being in debt is a psychological, as well as, financial burden.
But what do you think? Do you ever get feelings like this? If so, did you suddenly change course, or did you let it pass? Let me know in the comments!
Have a fantastic week!