In my Debt Payoff Progress post for March, I told you that we hit our monthly target and reduced our debt from $8.340 to $6,560.
For April, despite my recent bachelor party weekend in Louisville – which cost me $600 (partly because I had to get a new car battery installed down there) – we were able to reduce our debt from $6,560 to $4,834 – a reduction of $1,726.
Thankfully we got our federal and state tax refunds in April, which paid for the trip and allowed enough to send an extra $600 to our European Vacation fund.
As you can see from this chart, we are still well on track to be debt free by the end of July.
Additionally, we still have a buffer of $454 for the last month, meaning I have some wiggle room for unexpected expenses as we continue down the path to debt freedom.
What’s the Takeaway?
I think the lesson from the last month is that sometimes in life, things happen that we can’t avoid. Sure I could have saved at least $400 by not going on the bachelor party, but at the expense of looking like a real jerk. An important thing about money is that we don’t allow it to become the most important factor in every decision.
As far as things that are unplanned, I had to buy a new car battery in Louisville to ensure that I could actually drive home. I paid almost $200 to have it installed. I know I could have saved $50-100 by doing it myself, but again, I didn’t have any tools or the means to do so. Peace of mind was more important than money in this case.
Debt Payoff Calculator
If you want to use the same debt payoff calculator I use, which allows you to run different scenarios such as the debt snowball or paying debts off by interest rate, read this recent post I wrote.
As you all probably know, I am an advocate of paying off debts from smallest to largest to build momentum. This strategy is actually in my 10 Rules to Eliminate Your Debt and Change Your Life.