It’s time to put the pedal to the metal! As you know, I am on a mission to pay off all debt by the mid year mark of July 1st. I have lots of motivation for this, the primary one is getting out of this apartment and back into a home! So as we are winding down the school year and looking forward to the summer, I have been doing some number crunching.
Essentially I sat down and looked at my typical, required monthly bills and balanced those with my typical income. And in this fantasy land where I never spent more than budgeted (in the required line items) and didn’t have any debt payments…in 6 months, I would have about $15,000 saved towards whatever comes next. $15,000…I’ve never had that much money at one time.
So with those number running around in my head and encouraging my motivation, we have decided as a family to go hardcore on our budget…temporarily. I know we can’t sustain this forever, but I think we can through this summer and into the beginning of the school year. So without further ado…our new monthly budget:
|Rent + Water + Storage||$1,344|
|Car & Renter's Insurance||$100|
New budget takes affect…April 1.
How It’s Going to Work
I kind of hinted to this move in my last post about going cash…so here’s how this is going to work. On the first of every month, I will take $1000 out of my bank account. That will be all the money we have to use that month…groceries, gas, fun, necessities. When it’s gone, it’s gone. And we as a family will be well aware of that as there will be nothing left in the envelope.
What I’m Counting On
So there are a couple of things I’m counting on to make this work:
- We will make use of the pool here at our apartment complex, the neighboring playground and board games for entertainment. (Although the kids may choose to use some of our monthly money to keep Netflix.)
- The summer bills ie electric don’t vary much from the winter here in the apartment.
- All of us can learn to compromise on our needs and wants with our spending money.
Really looking forward to seeing how this plays out!
The sorrow and joys of this roller-coaster overwhelm her at times, but she is committed to this course.
Hope plans to dig out of debt using any resource possible including her small business EPOH, her blog and any other resource that comes to mind!