This is the fifth post in Our Journey to Become Debt Free series. To read more of them, visit this page.
April was a good month for our debt free journey. Nothing special happened, but we were able to Snowball a pretty good chunk of money by sticking to our budget. Here’s a rundown of what we’d contributed to our debt payoff through March:
And here’s where we stood at the end of March:
In April, I had to pay the final $50 to close out our contract with Dish Network now that we had returned all of the equipment to them. Since I had decided I wanted to keep groceries around $440, it had pretty much been a breeze. In April, I spent $442.80 on groceries. Of course, I estimated what I really thought we could do, but I was very pleased with our ability to stay within the $440 budget.
We added another line item to our budget in April. It’s what we refer to as “Blow” money. Basically, it’s a weekly or monthly allowance of a certain amount that you can kind of spend on whatever you want. We were already spending the money, so we hoped that by creating a budget item for it and limiting it to a certain amount would help with some of the frivolous spending. We decided on $160 for the month, which was $20 each per week.
The stomach issues I went to the doctor for in March ended in a Colonoscopy in April, so we paid $598.17 towards that, mainly using the leftover $515.74 from March’s Snowball.
We were also able to make a $664.27 payment on the Chase and redeem points for a $25.98 bill credit. That brought our Chase down another $690.25!
Isn’t it crazy?! A few months earlier we were adding to our credit card debt every month and now we’re making $500 and $700 payments on those credit cards every month!
Do you have a realistic budget? Would you benefit from budgeting software like YNAB ($6 off here)? What’s keeping you in debt?