Month 6: Debt Repayment Update

Month 6 between March and April was a really good month for debt repayment in this household! Toward the end of March we got our tax return which put us down to $56,000.   Since then, we're down another $1,494 (!) which brings us to:

$54,506

6 months in, we're down about 10K ( approx. 15% of our total debt has been wiped out). Double digits feels nice! This month DH started getting some overtime and my raise kicked in. We also did some very small and inexpensive renovation projects like caulking, screen replacement, and spruced up the outside of our house a wee bit. 

This month we passed a significant milestone which was having a positive net worth. This gives us a huge sense of relief and added financial security and means if we sold all of our assets we wouldn't actually owe anything - we'd have cash in our pocket. So... if we both lost our jobs tomorrow, we could feasibly get minimum wage jobs and rental accommodations and be just fine! We also realized in looking at the adjustments that we've made to our budget that we could maintain our current standard of living (with all the frills of 2 cars, 2 cellphones, cable tv, internet, etc.) on just DH's salary. The costs we incur currently beyond DH's paycheque are things like childcare expenses and additional fuel costs which would be eliminated if I wasn't working. This also makes us feel more comfortable with our financial situation. 

In analyzing all of this, I've come to realize that we could actually commit more money/month toward debt repayment... about $2000/month without much sacrificing on our part. Actually... since the start of this journey, we haven't really given up much at all. With both of the boys birthdays coming up, I am anticipating not as good of a month 7 in terms of debt repayment but you never know. 

Two is a pair.

With my paper under my belt, I've been spending a lot of time lately with these little monkeys. They are quite the pair. But their differences are also starting to show.

N takes on the little brother role pretty seriously - both idolizing his older brother and erring on the side of over dramatic at times to try to get his brother into trouble in order to get his way.  He is sneaky and stubborn too. He plays well on his own and will stay engaged in play for longer periods of time than B ever did. At almost 23 months, he's going through a huge naming phase right now. Bottles have been replaced by books. He loves reading. His favourite - Good Night Moon.  He will use the toilet if we put him on though we are nowhere near getting rid of the diapers yet!  

B is the quintessential big brother, always wanting to take care of his little brother. He just has to be the first one in to see him and help him out of his crib in the mornings and hates seeing N upset. At the same time, he's starting to play the older sibling card - sometimes trying to make sure that he gets more of something or gets to do something longer since he is older. Sometimes he snatches things away from N despite our constant reminders - "don't take from your brother". B is very social and is always looking for someone to play with. He adores being outside and jumping on the trampoline, riding his bike, rollerblading, or riding his scooter. His writing is becoming much more legible with school and his artistic abilities are coming along too. He has been wanting to draw and paint a lot lately. I can't believe he will be 5 at the end of this month. 

2013 Goals Check-In

There is nothing like putting your goals out there to put some pressure on to make yourself accountable. 




With the beginning of a new season, it seems fitting for a check-in with my 2013 Goals. 



- I will finally graduate from my Masters Program

WELL, I submitted my major paper yesterday to the Faculty which was a huge relief. If I've ever been close to crying with tears of joy, Thursday was it. I had an overwhelming amount of support from family and friends. I will have an oral "exam" at the end of this month and then likely attend the graduation ceremony this June. 


- I will find secure and meaningful employment


My contract was renewed (with a raise!) until the Fall. I'm still really hoping for the security of something permanent with paid vacation and sick days but for now, everything is pretty good in the work department. 


A few opportunities for jobs did present themselves over the last few of months, one I interviewed for but didn't end up getting. In retrospect, I wouldn't have exactly been the best fit for the position and might not have enjoyed it nearly as much as my current position. The others would involve travelling almost double the distance I currently travel (which is now 12km) for close to the same pay in a slightly less exciting and less upwardly mobile positions. I had intended on applying but forgot in one case and decided against applying in the other. I'm optimistic that something will come up closer to home in the next months or that I'll end up getting another contract extension. 



- I will continue to pay off debt (at least $15,000) this year while at the same time taking a family vacation in the Summer and buying a newer reliable vehicle


So far this year we've paid off $4913 in the last 3 months. Our tax return helped greatly with this so we're well above the $3750 we needed by this point to be on track to paying off $15,000. 


At this point, the week-long family vacation in the Summer just does not seem practical. Summer is DH's busy time at work and I might need to save my vacation pay for when my contract is up in August just in case. Nevertheless, we're planning a one night getaway to Great Wolf Lodge this Spring (just waiting for a weekend with cheaper prices) partially for the boys birthdays (April/May) and partially because I've been pretty absent at home over the past few months between my work, school, and my volunteer commitments. We're also planning on getting out to do some weekend camping too. 


I got a Prius in January. And I'm loving it! 


- I will make our house a home


For my birthday we hung a couple of picture frames on the wall. I'm hoping to print some more photos and get a couple more hung soon. Lately I've been inspired to do some Spring renovation projects. I love what Martina did with her exterior and what Sarah did more recently with her master bedroom. 


- I will make an effort to be healthy


This one I haven't actually made any progress on. Terrible, I know. I'm going to use the weather and school work as an excuse but 'tis the season with bathing suit time creeping up on us, BBQing, and nicer weather. No more excuses. 




Hello Spring!

Thursday I turned in my major paper for my Masters and breathed a huge sigh of relief. With the exception of a final oral exam, I'm done. I actually can't believe I'm writing these words.

This weekend has been really special. After turning in my paper on Thursday, DH also had some good news. He got his tax return in the mail. We finally knocked off our first entire debt payment in "the Mission" which was our family loan and boy did it feel good. If Winter was all about getting back on track. We're there. I also got my first paycheque with my raise. This is an increase of about ($150) per pay. DH also had his first Saturday overtime shift of the year this weekend. In the finances department things are pretty great.

But I realize a lot of my recent blog posts have been focused on debt reduction and finances. That wasn't the only thing special about this weekend. We've spent a lot of time relaxing, reconnecting as a family, and resuming life in general. We didn't have any plans with extended family this weekend so it was just us and it was nice.

In my absence, DH did a good job of making sure we were all fed but we've been seriously missing quality home cooked meals. Thursday night I went to the grocery store and stocked up on groceries. I've been cooking up a storm all weekend and we've been feasting.

We've also been enjoying the nicer weather. Yesterday B and I washed all of the salt off my car while N napped in the afternoon. We washed it the old fashioned way with a pail of water and a couple cloths. B also learned how to ride his bike without training wheels this weekend. Took him 2 days and he is now zipping around. There is something to be said for readiness. We tried last summer since he was so good with his training wheels and he wasn't quite there yet so we let it go. I feel the same way about toilet training and alphabet writing. Pushing it before the child is developmentally can be more discouraging and challenging for both the parent and the child. This year he was more confident and determined than ever.

We put the trampoline back up in the backyard too.

And even got to starting a small outside project! - New house numbers (in progress) and a new doorbell ($25). Over the next couple of weeks once the weather gets a wee bit warmer we'll be painting the garage and front door.

Oh yeah.. and the bunny dropped by.

Happy Easter!

A debt breakthrough with a little help from the tax man!

I'm about neck deep in paper writing right now but I had to stop for a second because I am bursting with excitement to announce that we've had a break through. Our partial tax return coupled with a few regular debt payments was just the little boost that was needed to put some wind back into our debt paying sails. We're down another $2,257.

Leaves $56,000 my friends which means that since October, we've paid off about $8,000. 

By the April update we'll have our family loan 100% paid off and will be onto tackling the credit cards with some pretty big force. As I mentioned before, we're big fans of the snowball method of debt repayment. With our family loan paid off, we'll have extra money in addition to the money we're already paying on the credit cards. 

Side note: Twice this weekend the evil bank tried to squash our debt paying efforts. 

First, when I went into the bank to make a deposit into our bank account, the teller was insistent about letting me know that I was eligible for a no-fee reward credit card due to the certain type of account we hold and the fact that DH holds one that that institution. I respectfully declined (go me). The teller was flabbergasted. Couldn't understand why I wouldn't want a NO-FEE REWARDS CREDIT CARD to which I replied that we were trying to pay off our existing credit cards rather than taking more on. 

Secondly, we had gotten overdraft on our bank account awhile back thinking that we could exercise some control and use it as our emergency cushion. Turns out we couldn't (as we've learned from the past - but sometimes some of us humans have to make the same mistakes over again a few times to learn). "Emergencies" are really just to easy to justify and there is always the excuse of paying it back next week which never really happens and before we know it we've used up all the OD. For us, overdraft always leads to us operating as if the overdraft limit is the $0 rather than the actual $0.   

Yesterday DH called to cancel overdraft on our joint bank account. When the bank asked why, he had no trouble explaining the above to the customer service rep. Once she had taken care of removing it, she slyly asked if he was aware that he had a few 0% interest for 6 months balance transfers available for him for his credit card (which is currently maxed out might I add). So if we were to take her up on the offer, we'd be right back at square one. He declined and got the hell off the phone! 

Month 5: Debt Repayment Update

Month 5... where do I start. I thought we were doing well this month but a check in with the numbers says not so much. 

We're down $581 from last month which brings us to:

$58,257

Being the one in control of our finances, this month my mind has been elsewhere as I wrap up my graduate degree. Though our repayment amounts over the last few months have been inconsistent and somewhat under par in terms of our planned debt repayment, we're still very much on track to our goal of paying down $15,000 this year. 

A few other things contributed to our more minimal debt repayment this month like a research trip that ended up costing about $200 and weather days (about 3) and the Family Day Holiday meant reduced pay for DH and less money for debt repayment beyond minimums. 

I did submit our tax return this week using Turbo Tax and it looks like we will be getting back a decent amount which should be reflected in next month's update. Using Turbo Tax, submitting for DH and I ended up costing about $75. Mo commented on last month's post suggesting I check out other free software packages which I fully intended on doing but again - my mind was elsewhere and somewhat regrettably I chose convenience over budget. Last year we had an accountant and paid somewhere between $120-$140 so we've cut that in half this year. Next year our taxes will be simpler, I will have more time, and I will 100% be using the free software. Baby steps, right? 

April will start off with my paycheque reflecting my recent pay raise which will be committed toward debt repayment. So Spring time, here we come!

I'm also really excited to welcome some new readers to the blog. Sarah from Sleeping is for Losers recently gave a shout out to us for "The Mission". Please leave comments/blog links! Lets help each other achieve financial freedom.  

Not so typical schedule...

Martina over at Get Real Momma recently posted her daily schedule. I love seeing how other families do things so I thought I'd share my rather hectic schedule as I balance being a mom, F/T school, and F/T work until the end of this month. My final submission of my Masters paper is due on March 28th so there has been no fooling around since mid-February. I'm finally starting to see my paper pull together and the light at the end of this long long tunnel.

6:15 Wake up
6:15-6:50 Cuddles in bed, telephone call to Daddy before he starts work, and breakfast
7:00 Throw the kids in the car in their PJs to pick my sister up to watch them
7:15-8:15 Getting dressed and organized for the day, put on a pot of coffee, drop B off to the bus on the days he has school, and getting ready for work
8:30-4:30 Work/Working on my paper over my lunch hour
4:45-6:00 Get home, eat dinner, clean up
6:00-7:00 Relaxing with DH and the boys
7:00 Bedtime for both boys
7:15-9:00 Library or some other place with tea and wi-fi to work on my paper
9:30-10:30 Getting organized for the next day, chatting with friends on Skype or the phone, watching a bit of TV (usually PVR'd shows)

Weekends look a little more like this:

7:30 Wake up (DH usually gets up with the boys who still get up around 6-6:30, though he wakes up for work before 5am on weekdays so this is a sleep in)
8:00-9:00 Breakfast and much needed coffee
9:00-11:30 Cleaning up around the house
11:30 -12:30 Prep and eat lunch and Put N down for a nap, sometimes B too.
1:00-5:00 Prep something for dinner and retreat somewhere outside of the house to work on my paper

5:00-6:00 Get home, eat dinner, clean up

6:00-7:00 Relaxing with DH and the boys

7:00 Bedtime for both boys

7:00-10:30 Hanging out with DH - usually watching movies, sometimes having a glass of wine

I do wish I had a little more time to spend with the boys. I try my best to work around their schedules in terms of fitting school work in. I also know they're loving the daddy time. Though I wouldn't want this to be my schedule all the time, and it really hasn't been - only from about mid-February as I mentioned before. I don't find it too overwhelming. I have a wee family getaway trip planned for April, once this paper is safely out of the way as a thank you to DH and the Boys. DH was able to sneak away for a boys night at a cabin in the woods up north over the weekend so we're making it work. No relationship spats so to speak of.