We could definitely tell it was a leap year as the month of February was full of nothing but ups and downs for my household. We went into the month with a positive outlook. We knew that if all went as planned we’d be paying off our first student loan on the Debt Snowball moving on to the second. I’m happy to say that in spite of everything that went on we were able to achieve both of these goals. The 1st Student Loan which had a starting balance of $21,000 was officially paid off on February 11th. It took us 6 months to make this happen. After I made the final payment I called my Mom to share the great news and instead of feeling overjoyed I felt drained and exhausted. Why would I feel drained and exhausted after completing such a huge milestone in our debt payoff journey?
The truth is this journey is both physically and mentally exhausting. Yea we make a budget that we work hard to stick with and set goals but that’s only half of it. No one really sees what goes on behind the scenes. The juggling act of balancing life, the sacrifices, the trying to explain to family and friends that we can’t afford something, the late nights and ridiculously early mornings all to hand the hard earned money away. I don’t want people to be like us. I don’t want people to have to postpone life because they have so much debt that they can’t breathe. This is why I’m pushing Broke on Purpose so hard, this is why I want families to talk about finances and to teach their kids to have a healthy relationship with money. I don’t want any of the future generation to have to walk in our shoes knowing it could have been prevented.
Living Broke on Purpose Creates Financial Peace
This month we also experienced Financial Peace first hand. If you’re subscribed to the newsletter you’ve already heard about this, but for those who aren’t our dog was diagnosed with a tumor that needs to be removed. Long story short the cost breakdown for surgery ranged between $1400-$1800. Even though we budget for our pet expenses we did not have this kind of money available to just pay for a surgery. As I brought our dog home I realized that something was different about this situation. I wasn’t panicking or having an anxiety attack. I was perfectly calm. I was experiencing financial peace. Even though we didn’t have the money to pay for the surgery right then (I mean we’d just paid over $2400 towards a student loan) I knew we would have the money the following month. That’s the beauty of living Broke on Purpose because we’d paid off so much debt in the past 11 months we no longer had to worry about large amounts of our income going towards minimum payments. We could instead choose to put that money towards other things, like our dogs surgery. On a good note I got a second opinion from another vet and was quoted a cost of $855 which we can defintely live with.
Alright so lets get to the February 2016 Debt Payoff Report Breakdown.
We started this month off with with a remaining Student Loan Balance of $2462.00
The minimum Payment on this loan is $385
Extra Payment from Debt Snowball: $1000
Add On Payments for the Month $1980
Total Debt Payoff Amount $36,309
We had $500 left over in our budget this month even after paying for two vet visits that totaled $345 so we applied that money to our debt snowball. The remaining $1480 came from income I earned working as a digital media influencer and freelancer. After paying off the 1st student loan we applied all extra money towards the next debt which is my Navient student loan (both my husband and I have one) which now has a balance of $3678 down from $4643. Our goal is to pay off this particular loan by the beginning of April!
As I mentioned above my husband and I work hard to stick with our budget. One of the ways we do this is by writing things down. The Broke on Purpose Financial Worksheet Kit contains 7 amazing worksheets to help you and your family plan out your finances. Plus the best part is you can print them as many times as you want! If you want to learn how we went from from almost having to file bankruptcy to getting rid of $36,000 in debt pick up the Broke on Purpose Ebook and Worksheet Bundle where I get real and transparent about how we handled our finances.