2008 Goal Round Up and Debt Snowball Progress

Well, this year is drawing to a close. It's been a year with a lot of ups and downs. Some bad things happened, some good things happened, and we rounded it out with a gorgeous new baby for my oldest friend (which really puts things in perspective, let me tell you!).

I hit most of my goals for 2008. I made some good financial progress this year and feel like my debt is in a less scary and manageable place.

So, my 2008 goals were:

Get My Networth to -$28000 - DONE I'll be updating my Networth this week but I can tell you that it is below -$28,000

Get my Prosper Loan down to less than $2000 - DONE It is at $1985!

Pay off my Banana Republic Card - DONE

Pay off my American Express -DONE

Get Emergency Fund to $1000 - NOT DONE Currently it stands at $455.

I am happy that I accomplished so many of these goals. I really tried for that last one, but I just couldn't make it happen. I'm okay with not hitting that goal, because I know that I just have to work a little harder on it for next year.

Debt Snowball Progress

I have made tremendous progress on My Debt Snowball over the past few months. I paid off my American Express card right before Christmas, which was Step #4 in my Snowball. 

Here is where we are:

1. Banana Republic Card - PAID 

2. Medical Bills - PAID 

3. Car - PAID 

4. American Express - PAID

5. Prosper - Balance $1985.93 - Minimum $119.01

6. Bank of America - Balance $4701.29 - Minimum $102

7. Student Loan - Balance $23821 - No Minimum

Once my car was paid off, I was finally in a position where I was actually making more money than my bills, so I eased off and quit my extra jobs. I'm still working on making a little more money on the side, and will need to amp that up in the New Year since in February a line of passive income that has been helping me pay down my debt will come to an end. 

This Blog

I started this blog with the hopes of tracking both my personal progress, writing about finances, and keeping up with my writing skills. I'm hoping in the New Year that I will be able to get back to regular posting and start growing my readers and subscribers again. I should have a Networth update and my final list of goals for 2009 up in the next couple of days. In the meantime, I wish everyone an enjoyable New Years!

Resetting My Debt Snowball and Making a New Budget

Since I quit my second and third jobs and got a raise at my first job I've needed to rework my budget.
I know that I will have less money coming in, but my income will be less erratic. When I was working on my Snowball before, I found that I wasn't really paying my set minimums on to my debt, I was just chucking everything I could on there and not following the plan.
I've decided to go to greater lengths to budget my money accurately, so I've reset my snowball and created a budget that involves giving me some "fun" money.

So, here is my budget:

I earn $1345.48 a month.

$850 - Living Expenses (this is a fixed rate that I contribute to our joint account)

$91 - Savings

$80 - Gas (this is a bit of an estimate, since gas prices are odd right now)

$101.01 - Prosper Loan

$105 - Bank of America Credit Card

$15 - AmEx (Minimum Payment)

$100 - Disposable Income

This gives me a potential $3 wiggle room every month. The gas money and the fun money will come straight out of my weekly paycheck and be moved to my ING Direct Checking Account and I will stop using my normal debit card. By isolating this money I think it will be easier to keep on track with this budget. I've put $50 in the account as an initial floater because that $45 won't immediately clear when I transfer it over.

The income from the sale of my business will go straight on to my debt. Any additional income over $50 will break down as 50% to debt, 25% to Savings, 25% to Disposable income fund. Anything less than $50 will be snowflaked towards my debt.

So that's my new plan. I guess we'll see how it goes!

Debt Snowball Progress #2

It's been just over a month since I could report progress on My Debt Snowball. 

A few weeks ago I reordered my Snowball based on paying off the smallest debts first rather than leaving the ones that aren't interest bearing for last. Due to this restructure and working very hard at my second job (and some extra work at my first), I was able to write a check yesterday for Step 2 in my Snowball and pay off my Medical Bills!

My Debt Snowball now looks like this:

1. Banana Republic Card - PAID ($20 Minimum to Medical)

2. Medical Bills - PAID (106.40 Minimum to AmEx)

3. American Express - Minimum $126.40

4. Car - Minimum $200

5. Prosper - Minimum $101.01

6. Bank of America - Minimum $101

7. Student Loan - No Minimum

Thanks to the sale of my company and my second job, I'm making really great progress. I had predicted that I would be able to pay off my next debt by mid-September and I was right! Now the next calculations show that I should have my American Express card paid off by the first week in November if not sooner. With the Debt Snowball, whenever you pay off a debt you transfer that minimum payment to the next one. My minimum payment on my American Express card is only $20, but adding in the minimum payments from the paid off debt allows me to pay a bigger chunk of that debt down every month. I also throw everything I can at the debt that is at the top of my Snowball.

Here is how my 2008 Financial Goals are going:

Get My Networth to -$28000 - Currently at -$30,102

Get my Prosper Loan down to less than $2000 - Currently at $2508

Pay off my Banana Republic Card - DONE

Pay off my American Express - Currently at $610.22

Get Emergency Fund to $1000 - Currently at $339.94

I still think that with three and a half months to go I'm on track for everything but my Emergency Fund. I normally put 5% of my regular salary into that fund, as well as any ING Direct bonuses. When (and if) my raise comes through I will be adding more to it, since I am giving my savings account a raise too... but it still might not be enough to make it. 

Writing that check to pay off my medical bills, though, was one of the best feelings. I am so happy right now!

Debt Snowball Progress

When I had my accident it sent me into a giant pit of financial despair. I have medical bills, I had to buy a car, I have to pay car insurance, and many other little things keep surfacing that I have to pay for. 

I decided the only way to get a grip on all of this was to just bite the bullet and get a second job. I am now working seven days a week in order to stay on top of everything. My second job is sales, so I get a base rate plus commission. So far I haven't been doing too badly, and combined with another six month long income stream, I can stay on top of my debt with a little extra to start paying down some bills.

Yesterday I received my first check and was able to pay off the first of seven debts. This was also the first end of year goal that I managed to meet. 

My debt snowball now looks like this:

Banana Republic Card - PAID ($20 Minimum transferred to AmEx)

American Express - Minimum $38

Prosper - Minimum $101.01

Bank of America - Minimum $105

Car - Minimum $200

Medical - Minimum $86.40

Student Loan - No Minimum

There are a couple of non-traditional aspects to my snowball. My car and medical payments carry no interest so although they have lower balances, I am working on the interest bearing debts first. My student loan was a loan from my parents and we have a separate agreement regarding it's payment. My normal job only allows me room to pay $130 in minimum debt payments currently, so the goal is to get all of my debt paid off or my minimums below $130 before I can stop working two jobs. 

Paying off my Banana Republic card is a great first boost. I am very happy that I was able to do that and I think that with some hard work I might be able to pay my AmEx off within another two months. 

My 2008 Financial Goals are:

Get My Networth to -$28000 - Currently at -$30,981

Get my Prosper Loan down to less than $2000 - Currently at $2575

Pay off my Banana Republic Card - DONE

Pay off my American Express - Currently at $1075

Get Emergency Fund to $1000 - Currently at $243

It looks like I am definitely on track to meet all of these goals with the only one I consider questionable being my Emergency Fund Goal. There is definitely a little light at the end of the tunnel though. 

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