by Jim
So here we are at the end of April already. Where does time go? Let’s look into my utility consumption and debt payoff.
| Rent | Electric | Oil | Verizon | Auto/Renter Ins. | |
|---|---|---|---|---|---|
| January 2014 | $600 | $105.44 | $1019.79 | $76.35 | $369.28 |
| February 2014 | $600 | $84.46 | $388.90 | $76.59 | $134.52 |
| March 2014 | $600 | $89.10 | $358.90 | $76.54 | $118.48 |
| April 2014 | $600 | $109.67 | $359.90 | $76.54 | $126.50 |
| May 2014 | $600 | $103.98 | $ | $76.61 | $126.50 |
It’s been a cold April, but according to my electric company, the average temperature was the same as last year off by a degree. I am pretty sure in April I turned off my heat, but as of right now it is still on. I am hoping that there isn’t another oil payment this coming month. I can use that money on other things, haha. I am also not sure if it is because of my heat that my oil is still on that I am using more electricity. But compared to last year which was billed for an extra day, my household consumed close to 100 kWh more with one less day. Other than those two things, everything else is pretty straight forward.
——–
| APR | Current Amount | Last Month | Percentage of Change | |
|---|---|---|---|---|
| Store Card #1 | 24.99% | $0 | $80.40 | 100% |
| Store Card #2 | 22.9% | $420.69 | $442.44 | 4.92% |
| Credit Card #1 | 13.99% | $3190.65 | $3234.59 | 1.36% |
| Personal Loan | 15.5% | $1526.64 | $1626.38 | 6.13% |
| Car Loan #2 | 12.99% | $17827.30 | $17914.69 | .49% |
This month I put the majority of my debt paying funds into starting an Emergency Fund. For the first time in over two years, we actually have a cushion. With that and adding on the side hustle money, it puts our total up $270. I am going to have to transfer this money out of my one account or ask about their savings accounts. Even though I was adding to the E. Fund I had to throw some money at my debt. Paying off the one store card was a great feeling and propelled me into the side hustles.
Now I have a question for all of you. I plan to use the $80.40 to snowball the next card, but there is still left over money. My one credit card’s minimum payment is $67, at one time this was around $80. With it shrinking I kept it $80, should I bring this amount down to the minimum payment and put that extra $13 toward the debt that is next on the list?
Jim, I say for the sake of record keeping keep it at the $80. It will put you a touch ahead of the next debt, but so be it.
I would keep putting money aside for the oil bill. It will come back around in the fall and if you get used to putting that money elsewhere, it is hard to adjust. Plus, if oil is higher next season, you have a cushion. Can you go on a budget plan, where they will average it out over the year? That is what we do.
I would keep the minimum payment as close to the minimum as you can make it, but as a whole number. So $70, and then an extra $10 to the next debt. But if this is going to throw you off, just leave it alone. As long as that $13 is going SOMEWHERE productive!
I tried to get on this last year Mysti, and you only have a limited window to do this. The month of September I will be going on one hopefully.
As for it throwing me off, it probably won’t. But I am so used to it.
I would consider tallying your oil costs for an entire year and calculate a monthly amount. Open up a separate online savings account and create your own “budget plan”. Then you are setting aside money throughout the summer to prevent these huge bills later on. You can pay your oil bill directly out of that account so the money doesn’t co-mingle.
Are you planning to create/update your budget now that you’ve tallied expenses for another month?
Hi Angie! During the winter months, my income goes up from me taking my regular seasonal jobs. This past winter was horrendous, and it ate away a lot of the snowball money. But I think you and Mysti are right about putting money on the side. I was planning on doing this, but ultimately decided against it at the moment. But I do need to plan ahead for this.
You think it would be alright to start this in two months or so? Or do you think I should this upcoming month?
We don’t have such terrible high bills for heating as you do, but I also encourage you to start the separate account and average out your bills on your own.
For us, in the winter electricity is about $45-65, and gas is $70-100; while in the summer gas is about $30 and electricity can be $200! I calculated out our average at about $180 a month, and after I pay the two bills for the month I transfer the difference to a separate account. $180 – bills = difference.
This is the first year I’ve tried this, as we’re in a new place, and I’m hoping it really helps in the summer with the insane cooling costs. At least it’ll make those huge bills seem a little less painful.
We’re also doing this for yearly costs, like the vehicle registration and tax fee.
This oil issue is just crazy to me. I’ve never had to experience it before, living in California. On another note, your side hustle post inspired me – I’m going to try to get $100 per month in sales of “stuff” or to pick up odd jobs like babysitting. Let’s see if I can do this!
I am still a huge advocate of the easiest way to make $100 is to save $100. But it is really easy to sell stuff. I believe in you!
Congratulations on saying good-bye to Store card #1. I would put every dollar available on Store card #2 and its 22.9% interest. Yuck.
That’s exactly what I will be doing Theresa! I hate that interest rate as well, haha
woohoo! Good job paying off store card #1! Like others have suggested, card #2 should get your extra money.
Good luck!
Thanks Scarr!!
Props on getting started on an emergency fund. I find savings to be so much more difficult than paying down debt, so I have huge problems leaving sitting cash alone. I end up with my e-fund in my Roth IRA, because then I don’t touch it, but the cash is easily available (contributions can be removed any time, because they are after-tax. It’s the interest that can’t be touched until retirement age.)
Do you find the differences in your attitudes toward saving versus paying down debt?
This is a great idea and one I hadn’t thought of. Thanks for sharing this idea!
Hi Walnut,
I am having trouble saving it, but as everyone pointed out it is all in your mindset, so I am trying to stay strong at this.