May 2011 Financial Update

Read our last Financial Update here!

Another month. Really?? Thanks so much for your support and faithfulness as you follow us on this journey toward becoming debt free. We love reading your emails and comments, and especially adore the actual conversations we get to have with many of you. Hearing your stories is both encouraging and inspiring. Keep it up!

We finished yet another month of keeping our budget in the black (finance lingo for on track!) We did have an unexpected bill come up to the tune of $200, but considering we are setting aside more or less $1000 a month to put toward debt, our emergency savings fund didn’t take a hit. We just didn’t have as much to throw at the debt this month as we would have hoped.

After four months of serious budgeting, we have finally gotten our budget figured out to the point that we can zero-out our bank account at the end of each month. This means that, with the exception of the $1000 in our temporary emergency fund, our bank account reads $0.00 at the end of each month, with our payment to the government for our student loan being the very last thing to clear. What a scary but exciting thing to know that every last penny we make is being used each month.

So without further adieu, here are this month’s stats:

  • $2186.66: Total income this month
  • $1500.66: Total outgo (except for our debt payment)
  • $686: Total amount going toward debt this month
  • $24,000: The amount of money the government now believes we make annually, up from $18,000 two months ago… they can’t quite figure us out so they keep asking us to reconfirm our income
  • $94.58: The amount of money the government is now asking us to pay each month, based on our income
  • $7,837.09: The balance left on our student loan after this month’s payment
  • 9: The number of months left until we are debt free according our debt payment schedule
  • 84: The number of months left until we are debt free according to the government’s debt payment schedule (not including the additional time it would take to pay off our interest, which is about 6%)
  • $15,500: The amount of debt we had in January 2011
  • $7,662: The amount of loans we have paid off since January 2011
  • 1/2: The amount of our debt we have paid off in 5 months time
How are you doing this month with your budget and getting/staying out of debt? Leave a comment or an email, and I would love to hear about it. Or better yet, contact me about doing a guest post. I’m sure many others would be inspired to hear your story as well!
To learn more about how we are managing to pull this off, check out My Budget Boot Camp, Mike’s and my personal look at our budget. We also highly recommend Dave Ramsey and his plan for achieving financial peace!
Read our next Financial Update here!
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2 thoughts on “May 2011 Financial Update

  1. Pingback: April 2011 Financial Update | A Rich Household

  2. Pingback: June 2011 Financial Update | A Rich Household

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