It’s that time of the month where we make our personal finance public! I’m really excited to share with you our successes in February. We had a great month both in debt payoff and in income earned.
I am continually amazed at how the pace of our debt payoff has picked up. We were going slow and steady for a long time, but with our income increasing and our frugal muscles as strong as ever, we are making nice progress. While $38 K of debt remaining should sound daunting, seeing where we’ve come from, it doesn’t really. It’s the home stretch of our enormous goal, which was a huge stretch goal when we made it!
If you are at the beginning of your debt repayment, I encourage you to go back and check out budget reports from our earlier days. You can find all of our previous debt repayment progress reports here. While the numbers won’t be the same as yours, I hope you can be inspired to keep going, even when you don’t feel like you’re making much progress. If you stick to your plans and don’t give up, you will get to the point where you’re running, instead of crawling.
Steadiness is the key. Just keep on truckin’ my debt-smashing friends.
Debt Repayment
In February we paid off $8,056 in debt! We were pretty excited about paying off debt this month because we brought in a good income last month. At the beginning of the month we put $6,000 toward the loans and were really hoping to have enough of an end-of-the-month payment to not only get us into the thirties (thirty thousands, that is) of debt remaining, but also to pay off a specific loan that we were working on.
Income
Our total net income for February was $16,894. Since we live on last month’s income, this is income that we haven’t touched yet. We will budget and spend it in March and I can’t wait! 🙂 We will keep our expenses low and be able to knock off a nice chunk of debt.
Attorney Income (Day Job)– $5,140 With Mr. SixFiguresUnder’s new job, in addition to taxes being taken out of his gross earnings, our health insurance, dental, vision, parking, union dues and retirement are taken out. In order to keep consistent and comparable reporting, I add the value of those benefits back in to come up with this income number, although they are deducted from his check before he gets it. His actual take-home pay is $3,762.
Attorney Income (Private Practice)– $9,654 In addition to his job with the state, my husband does legal work for private clients. His income is very variable. This month he got paid for something he has been working on for about a year and a half, which is pretty exciting!
My Income (Blog)– $2,100 The income that I report is the income that I received this month minus all of my blogging expenses. I keep track of both what I earn and what I receive. If you’re interested in the details of my blogging income as well as other blogging tips and resources, you can sign up for my Behind-the-Scenes Blogging emails to get the scoop.
If you’re interested in starting a money-making blog, check out my complete step-by-step instructions for setting up a self-hosted blog and you can get yours started today.
Spending
Each month we budget down to zero using last month’s income. Our spending in February came from the income we earned in January. In addition to the debt payment above, here’s how we spent money in February:
Tithing– $1,038 We happily pay a 10% tithe on our total income from the previous month. You can read more about why we pay tithing even though we’re in debt.
Other Giving– $40 Other charitable donations this month.
Mortgage/Rent– $0 Living in my in-laws’ unfinished basement is a huge blessing. I don’t expect everyone to do what we do, but for us, it’s worth sacrificing some comforts and privacy to pay off our debt faster. If you are considering living with family, here are some things to consider.
Internet– $0 Thanks to some legal work that my husband did for our service provider, we will have free internet for a while. It’s nice to have a skill to barter with.
Republic Wireless Cell Phones– $29 We switched our Republic Wireless phones to the new Republic Refund plans. With our refund for the data we didn’t use the month before, I ended up paying just over $12 and my husband paid just under $17 for our phones. That includes taxes too! You can read about getting refunded for cell data you don’t use here.
Health Insurance– $739 We have our insurance through my husband’s employer. This is our part of the insurance premium that his employer does not cover. I include dental and visions in this too. You’ll notice that it went up $74. I guess the new year comes with a new price. We actually used the dental portion this month to take three oldest to the dentist and it was so nice to not have to pay anything out of pocket!
Car Insurance– $158 We are insuring three older vehicles. Yes three. You can read about our van drama here. We did make an effort to get rid of the red van this month. We need it to either pass or fail smog so we can get $1,500 through the vehicle retirement program. You can read about that below under smog.
Renters Insurance– $14 We have our renters (and auto) insurance through USAA. It doesn’t cost much and it’s really great to have when you need it.
Food– $271 Since we made a big grocery trip at the end of January, we didn’t make one this month. I did stop by Grocery Outlet more than I normally do, which pretty much made up for it. Still, that $29 that I budgeted for groceries but didn’t use is going toward debt! Every little bit helps!
Gas– $250 This is pretty exciting, as our gas budget a year and a half ago was more than twice that! Gas prices are starting to go up again, but during the month it dropped as low as $1.93! Another reason our total was low was because my husband missed four days of work when he was super sick. 🙁
Parking– $155– Working downtown means paying for parking. It is set up to come straight out of his paycheck, which means it is paid for with pre-tax dollars, a small consolation I suppose.
Fun– $1.61 We got a movie from Redbox for a family movie night. The kids were excited to see Inside Out and the grown-ups enjoyed it too.
Clothing– $24 I bought some clothes for my daughter whose birthday is coming up. Between thrift stores and credit at ThredUp, I don’t spend much on kids’ clothes, but I saw some things she will really love, so they will be birthday surprises for her. One is a pair of overalls. Her brothers have several pairs and she has wanted some since she grew out of her last pair when she was 4. 🙂
Household– $48 I paid for a year’s subscription to the “new” YNAB. We still have and love YNAB4, but I had been receiving lots of questions about what I thought of the new one, so I decided to give it a try. I am curious about some of the new features like “aging” your money. You can get a 34-day free trial, as always. And if you already have YNAB4, you can continue to use it.
Car Repair– $440 I finally brought in the “new” van for an oil change and new brakes (and rotors). We knew it needed new brakes when we bought it. The rotors were a surprise. The mechanic said it looked like the previous owner would just change the pads but never resurface the rotors. We also picked up some coolant for my husband’s car.
Birthdays/Gifts– $46 My oldest is turning 8 this month. I already have gifts for her that I’ve bought over the past several months. She is getting baptized, so I made her a pretty white dress. Spending $23 on fabric is a pretty big splurge (especially since I am pretty clever at getting fabric free or super cheap) and I probably could have purchased a dress for less, but I guess you’d say it’s a family tradition, so it was worth the splurge. My husband took some photos of her and I put together an invitation that had printed and sent to family (most of whom are out of state and won’t be able to attend).
Smog– $60 We took the van in be be smogged this month so we can turn in our application for the program. Well, it didn’t pass OR fail. Either would have been fine, but it couldn’t complete the test! We are still going to apply to the program, but add a letter explaining the issue and hope they’ll still take it. For those of you not from California, without passing smog, we can’t even sell the van because the title can’t be transferred. If the vehicle retirement program denies us, we will donate the van so we can stop paying insurance on it.
Medical– $87 My husband had to go to Urgent Care when he was sick, then get several prescriptions. Thankfully he is better now. The baby girl (who is becoming less and less of a baby every day it seems), was diagnosed with a double ear infection at her well baby check-up, so she got some antibiotics as well.
Retirement– $484 With my husband’s state job we are forced to save for retirement. While we have some retirement savings from our before law school, it’s nice to finally be contributing again. This amount is taken out automatically.
College Savings– $100 We contribute $25 per month per child to 529 accounts. More on our decision to start saving for college in this post.
Fees– $79 I saved the worst for last. I’m embarrassed to admit that we had to pay credit card fees this month. It was completely an accident, but a costly one. In last month’s budget planning meeting , when we normally pay all of our bills, the website for one of our credit cards was down, so we couldn’t pay it. And then we forgot! That meant a $25 late fee and $38 in interest. I had to create a new category in our budget this month because this is something we never have to pay! Oh, and I also paid up on a year and a half’s worth of library fines. Wouldn’t want those credit card fees to be lonely in their budget category. 🙁
UPDATE– After all of your helpful comments and emails, my husband called the credit card company. Before he could even finish explaining the situation, they removed the $25 late fee and the $38 of interest! 🙂
How About You?
- How did your budget go in February?
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Monica S says
March 2, 2016 at 4:52 amI just wanted to take a moment and celebrate the fact that you have now paid over six figures of debt off! I remember when you were excited and had a mini celebration when you only had 100k remaining! Way to go on crossing over 100k of debt paid! You guys rock! Keep it up!
Stephanie says
March 2, 2016 at 7:42 amGood point! Thanks Monica! 🙂
MomofTwoPreciousGirls says
March 2, 2016 at 4:56 amIf you made your credit card payment in full but late you can ask them the refund the fees. Especially if it’s the first time. Even if they can’t do the interest they may waive the late fee. It doesn’t hurt to ask and anything is better than nothing!
Chris says
March 2, 2016 at 5:26 amI agree with calling the credit card company. I was successful in waiving the fee on 2 credit cards last year just by making a call. One 5 minute call that could be worth $25 is definitely worth it.
Mona says
March 2, 2016 at 6:13 amYes! Definitely call. If you’ve never had a late fee, they will most likely refund the fee. Probably not the interest, but it’s worth the call.
Stephanie says
March 2, 2016 at 7:59 amThanks everyone! We will give it a try. 🙂 Thanks for the encouragement!
AK says
March 2, 2016 at 1:39 pmIf they don’t budge, tell them you’d like to close your account. I was charged a late fee once for similar reasons, and I called and complained, and when they refused to waive the fee, I told them I’d cancel. (I had another card, so not a huge deal.) That got them to change their tune. That was 10+ years ago, but I bet they’d hate to lose a cardholder who pays!
alcwj says
March 7, 2016 at 11:00 amOr try chat/secure message option if call doesn’t work. You might be surprised different agents work differently.
Stephanie says
March 7, 2016 at 12:00 pmThank you everyone for the encouragement to call! My husband called and before he even finished explaining the story, they said they’d remove the fee AND the interest! Wahoo! In a minute and a half, we got our $63 back!
MomofTwoPreciousGirls says
March 7, 2016 at 6:19 pmThat’s fantastic!
Pamela says
March 2, 2016 at 6:46 amWow! What an exciting month for your family!
If your self employment income continues at such a healthy rate, you might want to set some money aside for taxes in 2017. We’ve been caught off guard before on April 15 and its no fun.
Also, I love the honesty about the late fees. I’m sorry it happened, but it’s nice to know your human like the rest of us. 😉
Stephanie says
March 2, 2016 at 7:51 amYou read our minds! 🙂 As I went to bed last night I thought, “I should have mentioned that we haven’t taken takes out yet.” We will be paying quarterlies this year, so when we budgeted for March last night we did set aside $3K for taxes. Good thinking Pamela!
[email protected] says
March 2, 2016 at 7:20 amYou’re going to meet your goal this year, I just know it! Can hardly wait to see the final debt repayment report :).
Stephanie says
March 2, 2016 at 7:54 amYes! With the small strides we were making two years ago, you’d never guess that we would meet our goal, but it feels like we’re so close. Thanks for being so encouraging Jenni!
MIdori says
March 2, 2016 at 8:42 amOH MY!!!! (jumping up an down and squealing with excitement!) STEPHANIE, THIS IS SO EXCITING!!!!
It looks like we will both be done with our big debt payoffs way before December!!! So happy and excited for you and your family!!! It’s definitely the home stretch now – can you see the finish line?!?!
Cheering you and your family on!
Midori
Stephanie says
March 2, 2016 at 10:03 amThanks Midori! You are a great cheerleader! 🙂 I’m really hoping to be done before December. That will be amazing! 🙂 It’s amazing how the momentum of slow and steady builds up to this. I’m happy that you are getting so close too!
[email protected] says
March 2, 2016 at 8:58 amWhat a great month! I’m super impressed with the amount you’ve paid off! I’m sorry you’ve had illness in the family, though. At one point in February all five of us were on antibiotics. It’s definitely been an expensive month in the medical department for us!
Stephanie says
March 7, 2016 at 12:01 pmThanks Sarah! I’m sorry to hear your family was sick too! It’s hard when everyone’s sick together!
Christin says
March 2, 2016 at 12:20 pmLove watching this! We are about to start working on my husbands six figures of medical school loans… he has deferred payments through residency and we still have a year and a half left out of five. (plus a fellowship! Gah!) After talking to a financial planner and loan consulting firm, (and reading your blog) we are going to get a head start! (scary!!)
Stephanie says
March 7, 2016 at 12:19 pmGood for you Christin! Starting is the hardest part. Once you start making progress, it can be addicting. You can do this!
Vanessa says
March 2, 2016 at 12:41 pmI have been so excited to see your progress this month! At the beginning of 2015 we had around $143,000 are we are now at 82,000. I love this blog because it keeps me motivated to keep going. It’s hard to see the light at the end of the tunnel, but after seeing your numbers I know we can do it too! Congrats, can’t wait for you to celebrate being debt free!
Stephanie says
March 7, 2016 at 12:17 pmYou’re making awesome progress Vanessa! Seriously, that’s fast! Keep it up and you’ll be done in no time at all!
Belinda says
March 2, 2016 at 9:54 pmCongratulations on your progress thus far!!! You have paid of such an enormous amount, and it is great that you are now on the homestretch. You’ll blitz that remaining amount in no time.
Way to go on your income earnings from last month!!!
Stephanie says
March 7, 2016 at 12:16 pmThanks Belinda! Yes! It definitely feels like the homestretch!
Janey says
March 3, 2016 at 6:29 amWell done Stephanie!! Not too much further to go. I’m excited to see how much you pay off next month with your super income earned this month! Well done again. Inspirational 😀👍
Stephanie says
March 7, 2016 at 12:15 pmThanks for the encouraging words Janey! I’m excited for next month too!
Jenn in Indiana says
March 3, 2016 at 8:08 amYes, make sure you call the credit card company and request a refund. Wasn’t it really their fault that their site was down? If they refuse, tell them you will closing the account. I have had this happen before, and if you are in good standing they are more than happy to oblige, after all, they want to keep you happy.
Stephanie says
March 7, 2016 at 12:14 pmHi Jenn! Good news- my husband called and they removed the fee and the interest and didn’t give him any problem at all. It was quick and simple! 🙂
[email protected] says
March 3, 2016 at 10:11 amThat is awesome! Do you think you will have this $38K paid off by the end of the year?
Stephanie says
March 7, 2016 at 12:14 pmThat’s the goal Jen! In fact I’m secretly hoping (ok, not so secretly) that we can get it paid off sooner! 🙂
Maria says
March 3, 2016 at 8:24 pmHave you considered a Health Sharing plan vs Traditional Health Insurance? I have researched them extensively, and can’t wait for the next enrollment period to switch to Christian Healthcare Ministries. It is going to mean an extra $6,900 a year in pay for us.
Stephanie says
March 7, 2016 at 12:13 pmHi Maria! We have looked at them in the past, but it just hasn’t felt right for us. I think it’s great that you’re going for it and I think that it’s a great option for a lot of people! Our insurance should go down in the next six months once my husband has been at his job for a year.
Linda P. says
March 4, 2016 at 5:23 amCongratulations for paying off six figures of debt so far. Won’t it be fun when all that saving is directed toward saving for your home?
Stephanie says
March 7, 2016 at 12:11 pmYes Linda! I’m really excited for this momentum to carry over into saving for a house!!
Ashley Reed says
March 4, 2016 at 11:49 amI just read your ENTIRE blog and became obsessed! I am a dentist….which means I also have a lot of debt….and cannot wait to get starting on a budget. We do very well and paying off debt already, but I just know that I can do SO much better after reading your posts. I’m so excited, downloading the app for YNAB now! Thanks so much for your wonderful advice and tips.
Stephanie says
March 7, 2016 at 12:10 pmI’m excited that you’re so excited about paying off your debt and budgeting! You’re going to do great Ashley! 🙂
Libby says
March 5, 2016 at 5:43 pmWoooHooo! And you thought i was being “sneaky” guessing your February total debt payment was going to be $6K – you SMASHED that number!
My guess for your March debt payment is going to be $10K – this means you will be in the 20’s – and I hope you smash my guess again 🙂
Stephanie says
March 7, 2016 at 12:03 pmI love that you try to guess Libby! We will be putting some of that income aside for taxes, so I don’t think we’ll pay off quite that much in March, but we’ll see! 🙂
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