by Claire
With new tax adjustments on my paycheck my take home pay is $2930 every two weeks. I have consistently made at least $200 in Pampered Chef commission bringing my total net pay $6,060.00.
Here is what I pay that is NOT debt related:
Rent: $1075
Insurance (car and rental): $80
Orthodontist: $65
Verizon: $100
Piano: $90
Life Ins (this is a separate policy from what I have through work): $30
Utilities: $75
Water: $40
Afterschool Care: $190
Netflix/Hulu: $20
Gym: $25
TOTAL of known monthly expenses: $1790
REMAINING: $4,270
Groceries: $300
Gas: $100
Dogs: $50
Entertainment: $50
Drycleaning: $25
Kids School Fees/Supplies: $25
Health/Beauty (hair, skin, etc) $30
Additional Items Total: $530
REMAINING: $3,690
My minimum payments on the remaining debt total $1,100. This leaves me an extra $2,590 to put toward debt each month! I look at that number and I am amazed! I have had to make some very uncomfortable and humbling decisions over the last 8 months but to see that number and know what it means makes it all worth it. Wow. I’ll pay off that villain Bank of America in the month of May (I’ll be about $165 short for a total payoff but I am hoping for some found money that month either via PC or taking more kids’ clothing to the resale shop…something…) and then that whopping $520 can be sent to the card with the $12,770 balance making a huge dent in that one. I should be able to knock that out in 4 months. At that point a full $3,680 will go toward the final $19,000 signature loan. Can you believe it?!
I’m more comfortable with my budget now b/c I’ve paid attention to what I spend on these categories and for the last few months this has worked. Budgeting is such a fluid thing and the danger for someone like me is that when things go off track I want to go completely off track and give up. That isn’t how this can ever work and when I think about that I get tired. Then I remember that with each passing day I am simplifying my life and if my income maintains (and hopefully increases) this will get easier SO LONG AS I keep my focus. Whew. It’s daunting to think about but I am in such a better place that I was a year ago.
Using some debt payoff calculators, I’m looking at roughly 6-8 months to be debt free. I think I’m gonna cry. No, really…and I am not a crier! I am holding my breath though as I type that out because if I have learned nothing else from this journey I have learned that having a plan doesn’t always mean much. Life comes at you non-stop with the unexpected. I am very proud that I once predicted (when I was married) that we’d be debt free by December 2013. If things go really well I might very well be finishing before that date!
Born and raised in Texas. I’ve at least driven through every state in the US courtesy of a roadtrip loving Dad.
I’m single with two children and a good parenting relationship with their father.
I am a “life is just half full of funny” kinda gal. Humor is my saving grace and I am thankful for it every single day. I have a strong Catholic faith and am thankful for that foundation.
I read a lot for a living but still enjoy a good book. I love biographies but in recent years have found the need for fun fictional books–sadly, for a long time I just didn’t enjoy fiction!
I love live theatre of any kind–from local productions to Broadway.
I love to scrapbook and pride myself in my kids’ albums.
I love being a mom but also love my career. I’m blessed to have found a balance allowing me to be at everything my kids need and want me to be at–while also having a career.
Favorite Quotes: Well behaved women rarely make history.
Behold the turtle. He makes progress only when he sticks his neck out. -James Bryant Conant
Great progress! Every month that goes by I can feel myself getting closer to my ultimate goal: Debt freedom. It’s very motivating for me to see how well others are doing. Great job!
WOW!!! That is so exciting! I love to see these numbers laid out, thank you. Can you imagine… you will need to figure out what to do with that $3,700 a month!!!! Congratulations on ALL of your hard work.
I am irrationally invested in your debt payoff. I just can’t wait to see this through the end. 🙂
Love it! April numbers will be good then. Yay!
Excellent! I figured you’d be done around December! I also would like to know what your plans are for that $3,700 extra after you finish this. Have you given it much thought?
I have not given that any thought Cathy. I just can’t get there mentally and I suppose that is good. Maybe in a couple of months I’ll get there?
Wonderful progress Claire, I’m so happy to see how close you are to your payoff! I am curious, once you have paid off all of your debt, will you continue to blog independently of bloggingawaydebt?
Well done! Looks like we will be debt free about the same time! Any thoughts to what you will do with all that cash monthly once the debt is paid off??
How very exciting to see the light at the end of your tunnel getting brighter and brighter Claire! Even though I don’t know you, like Nadia, I feel invested in your payoff….if you can do it, I feel like I can too. I am so glad to have found blogs to help me see that I am not alone on the journey and that others have to deal with setbacks, adjustments, and Murphy’s Law sometimes. You should be so, so, so proud of yourself.
Claire: I have a question regarding the difference between your income and your total expenses. How did you get into so much debt? I am not judging at all. I am in debt also, and am wondering if it had to do with just buying willy nilly or not having a budget???
Since I have been tracking I am amazed at all the money I have blown on God knows what. Thanks and congratulations! Awesome
job!
Maura,
Divorce is not cheap and I did it twice. My debt is not just expenses related to the actual divorces but also to the bad relationships the marriages were BEFORE the divorces. Those bad relationships led to distracting myself with spending on the willy-nilly-God-knows-what crap. Those bad relationships led to living a very long time with no budget at all. And those bad relationships led to my taking some phenomenal trips to various European locations…all on credit. So that’s it in a nutshell. I don’t recommend getting into or staying in bad relationships! LOL!
OH and BEST of luck on your journey!! It is scary stuff to start looking at your finances but it’s the only way.
That’s awesome! When you become debt free you can channel a lot of money towards a home fund and your retirement. You can splurge a little bit too.
I am so glad you have taken all necessary steps to free yourself. Kudos!
Thanks T’Pol! Not sure where I will send that money just yet but so thankful I will have OPTIONS.
I too feel overly invested in your payoff LOL!
You are doing FANTASTICALLY Claire!!!
But I’m curious, do you have any vacation plans with your kids this summer? They seem to be great kids and totally on board.
Maybe you can go away for a week or a few days? It doesn’t need to be expensive. You can go camping, or visit friends or family. Or a long weekend somewhere close doing something your kids would really enjoy.
I know we are all different but I would happily do something “special” with them, even if it meant winning my “race” a week or a month later.
It’s all about priorities. We all spend so much time rushing here and there, having a few days off is priceless to us. So, that would be mine. 🙂
Hello debthaven!
I have great kids. I know every mother says that but these kids are phenomenal. They are both fully aware of the debt journey and none of us would enjoy any big trip at this time. We are going to see my sis in Houston and they’ll see their cousins which is as good as any big trip would be for them!
It helps too that their Dad is taking them on a summer cruise. This is the first year he’s arranged to take them on a big trip. In the past it was always me doing summer vacations (see sidebar for debt resulting therefrom) so it is good for them to go with him. They’ll be gone for 7 days on a Carribbean cruise. That will be such a great experience for them!
As for future plans…if I do go there in my head…I dream of taking the kids on their first European vacation. 🙂 Maybe one day.
This is exciting news for your kids, Claire! So nice to hear they have a big trip planned this summer:) When you finish this up by the end of this year, you should splurge and reward yourself and your kids for your hard work with that trip to Europe! Then you can buckle down again and work towards your next goal. Just my .02.
I agree with this. Some kind of reward at the end. Of course, save for it and pay in cash. You deserve it!
Well done! You have dona a great job! I need to calculate my finance too 🙂
Wow Claire that is amazing you have that much left over to pay your bills. I guess that is what a good budget plan can do for you. Keep up the great work.
That’s amazing! Thanks for sharing and keeping others motivated! One question though, do you budget for savings at all? I noticed it wasn’t on your list of expenses. The only reason I ask is that I’m currently trying to pay off my debt big time but I also set aside $200 for savings/paycheck and I’ve been torn about it for a while now. Trying to find the right balance can be hard!
Claire, this is great news! You have come so far, even in the midst of all of the obstacles you’ve encountered along the way. I feel the same way as scarr and a few of the others do; I feel vested in your journey, and hope that you will continue to blog on another site after you are debt free. I will be interested to hear what your plans are after you reach your goal of being debt free.
Jean–
I have given thought to my life as a future blogger. If an opportunity presents itself, I’d definitely be open. I don’t know about starting something from scratch and I don’t see me wanting to blog just about finances. Time will tell I suppose but thank you for the encouragement.
Great progress, very impressive. Your projected budget looks fairly tight – do you set aside anything for rainy day funds, or is that what the baby emergency fund is for? I’m thinking of stuff like medical co pays, gifts, license renewals, car repairs and the like.
I was thinking your emergency fund could use some love, but if you wait to pay the extra 2590 to debt until the very last minute each month, I guess you have a floating emergency fund of 3590, for two weeks of the month.
I’m excited to see the home stretch appear.