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No Spend Month Success!

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We are the end of 6 solid weeks of no extra spending. And we have rocked it! I am so proud of us.

And a pleasant side effect of all the time at home and reduced running around is that my work has taken off. We are really on solid ground again. I am beyond grateful!

Big Win – Debt Payment

I mentioned when we began No Spend Month that my goal was to save enough for our Texas Roadtrip, but as I mentioned, work has really taken off.

I had already decided that my next debt to focus on would be the Tax Debt. And once I was comfortable with the cash for the Texas trips and money for December’s budget, I was able to:

Pay $2,500 toward the Tax Debt this week!!!!

The balance due as of today is now $1,001. And I hope to pay it off in December.

I am so freaking excited!

We Leave Tomorrow

Tomorrow we leave on a 9 day trip. We are all excited for this vacation. It has been a long time since we really got out and had some fun like this.

Our first stop will be New Orleans for a day. (We won’t be spending the night there as the hotels are insanely expensive, but we will be hanging out for a few hours.) I’m looking forward to having Beignets at Cafe Du Monde, picking up an authentic Muffuletta and listening to some live music.

New Orleans is hands down our family’s favorite place to visit. I even got to thinking picking up some Beignet mix might be a great, frugal Christmas gift for the kids!

I haven’t decided the route we will take to come back, but I’m thinking of a stop in Memphis. We’ve never explored that city much and I hear good things. Would love to hear recommendations of must see places and unique to Memphis places to eat! Again, it would probably just be a few hours around the city as a stop along the trip back.

 


You Can Become Debt-Free by Using the Snowball Method for Repayment

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Wouldn’t it be great to live debt-free and not have to worry about making monthly payments to several credit cards? While it may seem impossible when you’re buried underneath debt, you can use the snowball method to start making headway on that debt. The debt snowball method works by starting with the smallest debt and getting it paid off before rolling the payment into larger debts. The snowball method doesn’t seek to save you the most money since you’re not starting with the higher interest rate, but rather the lowest amount of money owed. This method helps you stay motivated and feeling like you’re making progress toward paying off your debt. Here’s how to get started with the snowball method.

List All Your Debts from Smallest to Largest.

Every single bill you have should be listed on this. If you just got a $50 doctor’s bill in the mail with a $10 minimum payment, list it. Once you have all the debts listed, you have a better idea of how much you owe with a clear breakdown of each payment.

Pay Off Smallest Debt First

Start by paying off as much as you can on the smallest debt. Once your smallest debt is gone, take the payment from it and start applying it to the next smallest debt while making minimum payments on your other debts. The reason this method is called the snowball method is that your money starts to get freed-up and grows like a snowball rolling down a hill. Focusing on paying those smaller debts frees up money to continue paying off the more substantial debts. This method of debt repayment is excellent for people who can easily lack motivation if they’re not feeling a progressive decrease in the amount of debt.

Roll Smaller Payments into Bigger Ones

Once your small debts are paid off, you can begin rolling those payments into your more significant obligations. For example, that $125 credit card payment you were making can be combined with the $25 minimum on it for $150 for the next payment. Once your second debt with a minimum of $75 is paid off, add that to the balance for a total of $225 toward the next debt. You can see how this method quickly compounds to help a user get out of debt. If you manage to acquire a new debt that is less than the one you’re currently focused on paying off, make sure you pay it off before starting in on your larger debt. Always be able to adjust your repayment strategy to accommodate for new, smaller debts that might appear.

Live Your Debt-Free Life!

Following the snowball method is a sure-fire way to achieve your debt-free lifestyle. Sometimes your everyday spending can come to an abrupt crash if you find yourself in debt, so much in fact, that it is the same as fighting over who’s at fault in a car accident, so it’s time to take responsibility to get debt-free if you follow this simple principle. Some snowball method calculators are available online to help you decide how much you should pay on each bill as you work to pay off the smallest amount first.


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