Hey everyone! It's time for the monthly check-in on how we are doing. This month we saw a big step forward thanks to getting our tax return. Our total debt balance dropped to $63,392.90. Even though my husband got a raise last year, our tax return was similar to the previous year's because along with the raise came an increase in our health insurance premiums, and because those are deducted, our taxable dollars were about the same. It's a little frustrating to think about how our raises are being offset by health insurance premium increases, but I won't complain around tax return time :).
This spring season has been filled with many expenses, and while we are tracking what we spend and making sure we planned for it as much as possible, I've also realized that for the next few months our extra savings will be going toward things that need to be dealt with now vs. later, like garden purchases or baseball/swimming lesson fees. I made a budget for our extra income that we are not putting toward debt and am tracking how much we are spending in each category, such as homeschooling, home improvement, clothing, and more.
One of the most encouraging things that happened this month was seeing how our most beastly loan, which started at over $30,000, is starting to be whittled away to a more manageable figure. Some people advocate a snowball approach, but it makes more sense to me to pay the highest interest rate first, even if the loan will take a few years to pay off.