There are times when you are working toward a goal and it is hard to see the progress of your work. This, my friends, is not one of those stories. Since January of this year, the #SMCmoneytribe and I have used the 52 Week BINGO Money Challenge that I created to save towards each of our money goals. Many members of the SMC Money Tribe are saving for a dream vacation and it makes me proud that because of their planning and saving, their dream to see the world can happen without disrupting their long-term money goals. I, on the other hand, am saving money to use as extra payments toward my student loan debt. This process is known as a debt snowball. Snowballing your debts helps you pay them off much faster and can save thousands of dollars in interest. In my case, my student loans are keeping me from progressing to Baby Step 3 from financial guru Dave Ramsey because they are the last of my debts, not including my mortgage.
Last month was the first time I can remember actually seeing progress to reduce my student debt and this month blew last month’s money recap out of the water. For the month of June, I saved more money than any of the previous months and the last four months combined. I sent two major snowballs to my student loan provider to pay down the balance instead of pushing back my next due date. This lets your money work for you and not the other way around. I also saved $326.00 for the month and hit the $700.00 YTD mark for this challenge. With a contribution from the Mr., we have saved a combined $1,575.00 that we could have easily spent on frivolous things. Thanks, babe! Teamwork makes the dream work.
MONEY GOAL TRACKING
At the beginning of the year, I wrote out my money goals and one of them were to pay off my credit card debt, which I did. The second one was to have my student loans at or under $15,000.00 by the end of the year. Around April of this year, I upped that goal date to October and then again, in May, I thought I would push myself further and make it a goal to have the balance at $15,000.00 by the end of my birthday month, August. I did this because a goal date of the end of the year ensured that I would hit the goal, but with such a long time to work toward the goal, it took away the hustle for it. By pushing the date up to August, it really forces me to review how I am spending and saving money and keeps me motivated to the short-term goal at hand.