- Debt #1 Original Balance: $2260.17
- Paid Off
- Debt #2 Original Balance: $6493.00
- Paid Off
- Debt #3 Previous Balance: $4.907.12
- paid $1510.91
- Current Balance: $3,396.21
Original non-mortgage Debt: $19,375.72
Current Grand Total: $3,396.21
What I said a month ago…
“Obviously our tenants moving out of our rental house in Vegas is going to put a damper on our debt eradication. We can cash flow two mortgages… But it ain’t pretty. Looking at December’s budget, I’m really not sure yet what progress, if any, we will make toward our snowball this month.”
What I’m saying this month…
I really don’t know how to explain the progress we made in December. I’m looking at the transactions for the month and I’m still scratching my head. Yes, we received cash gifts for Christmas that we applied toward our snowball. (The Hubs and I did not get ourselves or each other Christmas gifts.) But we also had unexpected expenses that weren’t known at the beginning of the month that pretty much canceled out those credits. So…
I think it’s a cumulative effect of our more intentional spending since we began this journey eight months ago. My, how time flies! Which goes to show, you’re going to pass the time doing something: might as work on getting out of debt while you’re at it!
I also very intentionally brought our checking balance down to zero this month. After we discovered Dave Ramsey and started our snowball last Spring, I attempted to create a zero balance budget each month.
The term “zero-based budgeting” is sometimes used in personal finance to describe the practice of budgeting every dollar of income received, and then adjusting some part of the budget downward for every other part that needs to be adjusted upward. It is more technically correct to refer to this practice as “zero-sum budgeting”.
This sounded simple in theory, in practice, however…
While I always debited transactions that occurred unexpectedly during the month, I did not credit back transactions that I had budgeted for but did not occur until the next month (or at all).
In other words, a little part of me has a hard time letting go of a little financial padding.
I decided to address that fear and let that money go all in one fell swoop! After all — it’s not really my money! It belongs to someone else and will until we are DEBT FREE.
The result? Another $500 or so that I put toward the snowball in December. I really, really like seeing the debt balance go down. Here’s to a fresh start on the balance in 2010!