Spending budget: $400/mo.
We bought $404.98 and made $5.
Total spent in May : $404.98 – $5 = $399.98
If you’re wondering how in the world we are able to do this, you might want to read this post on cutting your household and grocery expenses.
Current splurge $$ from coming in under budget: $149.25
If you haven’t been following our quest to pay off both houses and be 100% debt free, you can catch up here.
Getting Out of Debt Step 1: Know how much debt you have and the associated interest rates.
Getting Out of Debt Step 2: Build an Emergency Fund
Getting Out of Debt Step 3 (Budgeting Step 1): Know how much money you have to spend and make sure your tax withholdings are correct.
Getting Out of Debt Step 4: Create a Budget
Budgeting Step 2: Track your current expenses– preferably 1 year’s worth – to see where you’re spending money.
Budgeting Step 3: Make a plan for all your money, taking into account one time expenses.
Budgeting Step 4: Check up weekly
Budgeting Step 5: Reassess monthly
June Update
July Update
August Update
September Update
October Update
November Update
December Update
January 2013 Update
February 2013 Update
March 2013 Update
Estimated date to have both houses paid in full: November 2020! This puts us in a great position to help our kids with their first vehicle and pay state tuition for their college.
We refinanced the house to 15-yr mortgage in Feb. The payment went up slightly (don’t remember exact amount) but we cut about 7yrs off mortgage & cut interest in 1/2 (again, don’t remember exact amount of interest rate reduction).
yay! I was thrilled with our refinance back in December. We were able to get a 20 yr loan and only raise our payment by $7. Our home in Arkansas has a lower rate already (2.85 I think) but no one will refinance it because we owe so little on it. Not that it would be worth the closing costs anyway if we can stay on track
My wife and I recently started couponing and I stumbled onto your website while searching the web. I am a government employee that will be dealing with the furlough soon and was looking for a way to offset a reduction in pay. I use your CVS post weekly and have started reading your post on your quest to pay off your homes by 2020. I wanted to take the time to thank you for inspiring me to create my own spending budget and for all the time you spend posting on your website. I have bragged on your website at work sharing some of the amazing deals that you have helped me find. Keep up the good work and thanks again for being a positive influence!