This is the eighth installment of Krys’ story. We’re following along as she starts budgeting and works to pay off $20,000 of debt. This post was originally written at the end of April 2020: after Krys’ sixth month using YNAB.
See the rest here:
We’re kicking off with GOOD NEWS! This week’s paycheck put us into POSITIVE NET WORTH for the first time since we started with YNAB (and who knows how long before that)!
When we started on YNAB, we had a net worth of -$13,650, and now it’s positive $3,290! I am SO HAPPY!
I’m riding the wave of euphoria having moved from negative to positive net worth (I shouldn’t read anything into the fact that I keep wanting to type “self-worth” instead of “net worth,” right?).
It’s also been eight weeks of staying at home. Working, playing, eating, sleeping—you name it—from home.
We have hit our stride in this household. Chores before work and school, checking and correcting homework over lunch hour, taking walks or dancing after work and school, and eating dinner as a family every night. It’s been quite nice.
It has made me introspective. I realize how very privileged I am to be enjoying this time (despite some anxiety), and I’m looking at just why it’s so much more rewarding to me than our normal routine. I haven’t figured it out yet, but I’m actively loving this stay-at-home time.
Status on Financial Goals
- Get off the credit card float. ✅
- Start contributing to sinking funds for known expenses. ✅
- Start building the $1,000 emergency fund. ✅
- Pay off the first credit card (credit card float/car repairs). ✅
- Pay off the second credit card (medical debt). ✅
- Get one month ahead (age our money 30 days). ✅
- Pay off the home equity line of credit (HELOC) that we took on to replace our window.
We’re taking a breather on making big strides, but I’m still paying a little more than the minimum on this. Target payoff is July 2020 (up from November 2022).
- Pay off the car loan.
This is priority #4 on the debt snowball. Target payoff is October 2020 (up from November 2022).
Update on Debt
- November 1, 2019 $19,169.50
- April 30, 2020 $11,539.60
- Difference -$7,629.90
I’ve paid down $4,256.24 in debt so far this year. My goal for the year is $6,750. We’re 63% done with that.
We were meant to be a little farther ahead this month, but I feel better hanging on to our cash, in case something goes sideways. It will cost us $20 in interest, but I honestly feel just fine about that. I’m paying that much for some of our delivery services right now, so it’s a small price to pay in order to be able to sleep well at night.
We are hunkered down and trying to be thrifty in our spending overall, to ensure that we don’t put ourselves in a bad position as the global pandemic keeps on rolling into May and beyond, since it looks like that will be the case.
(Oh Krys, how right you were.)
I’m feeling anxious about my job, as so many of my friends are furloughed or just plain out of work. There’s not a lot of security in my line of work at the moment. Hanging on to the cash that was earmarked for debt pay down is feeling wiser than staying on the original pay down plan. I’m going to keep hoarding my money until things settle down a bit. Therefore, I continue to stockpile money and remain mildly anxious.
I have channeled my new money mascot, Squiffy the Gold-Hoarding Dragon, and am keeping ALL the money.
Age of Money: 47 days
I’m feeling very (hashtag) blessed to be enjoying the time at home. I know so many others still have to go out in this every day, and that they’re putting themselves and their families at risk to do so. If you’re one of those people, or you love one of those people, THANK YOU.
Document your own financial journey over on our YNAB Support Forum in our journals section, just like Krys! You can be as anonymous as you want and you’ll be met with a warm welcome of encouragement from the community there.
Krys is enjoying working from home during the lockdown, because she loves spending time with her husband, daughter, and three pets. She’s been using YNAB since 2019 and has been documenting her journey in paying off almost $20,000 of debt. When she’s not budgeting, she enjoys reading, watching Marvel movies, and learning new languages. She also possesses a fierce love of bacon and sarcasm.