So it's been one month and I'm so proud of where we are in our debt journey.
I laid it all out here and if I'm being honest that post was hard to write.
I didn't know how people would react. But I really just wanted to have a way to check in, keep myself accountable and be able to look back and say look at what we did!
So just a quick refresh we are in Baby Step#1 and well we are doing great.
We have saved $650.00 towards our $1,000.00 goal.Over half way there!!!!
I'm beyond excited.
This month though was not without challenges. We had a car repair that came up and had to be done, as in Michael had no heat in his car and well it's winter here! Thankfully my company owns a repair shop so we got it done for just the cost of labor. Now old us would have charged that baby and made plans to pay it off over the next x amount of months. This time? We used out emergency fund. We were well over $750 in our Emergency Fund but chose to use that cash to pay for the repair. I have to tell you it felt good to pay cash.
We have also been sticking to the envelope system and doing a budget for the month. Our weekly budget meetings have turned into a mini date night (oh the things that get you excited once you have kids lol) we get a drink sit at the table and go over numbers. This is how we run things
On the 20th the month before we finalize our budget for the next month. Meaning we look at the Calender see what birthday's are coming up,events we have you know things that will cost extra money. Then we start our budget. We have a set amount for our monthly income and we end up with our zero based budget. Then I go through and put the weekly amounts for each item on the envelope.
Thursday night we sit down and go through what cash we will be pulling out of the bank the next day and then Friday night we distribute to envelopes and count up our Emergency Fund.
We are still on track to complete our Emergency Fund by December 31st and Start paying on our debt in January.
I have to say the biggest pay off for me in this journey has been the feeling of peace I have. I will be honest I used to stress about money. It would affect me on a daily basis. Now I feel so at ease. We have a plan. We were shopping for Papa Joe's birthday and Michael was like "here we go spending money" and I reminded him it was fine we had budgeted for it. It was a nice feeling. And yes using that Emergency Fund was a bummer but that is what it's there for.
This is a journey and every journey has set backs.