Day 1 / $0 Paid / $95,152.22 until freedom
Where do we sit right now?
Cash – $3775
Retirement Funds – We are leaving those alone and will continue to contribute. We may be crazy doing this adventure but we are not stupid. LOL
Income – We are not planning on disclosing our incomes but you may be able to figure it out when I start crunching numbers.
This is how we currently keep our money straight. We have 2 banks: Wells Fargo and US Federal Credit Union.
USFCU: I have $900 a paycheck being directly deposited into this account. Plus, another $125 every 2 weeks from another income source. This money currently pays:
- Home Equity Loan – $830
- Toyota 4Runner – $325
- NW Mutual – $575
Wells Fargo: The rest of my paycheck goes into this account. Ben’s full paycheck goes into this account.
- Main Checking – pays the rest of the bills not covered by USFCU
- Main Savings – $75 deposited monthly from main account
- Ben’s Personal Checking – $75 every 2 weeks deposited from main account (Last year it was weekly)
- Ben’s Personal Savings – $75 deposited monthly from main account
- Brenda’s Personal Checking – $75 every 2 weeks deposited from main account (Last year it was weekly)
- Brenda’s Personal Checking – $25 every 2 weeks deposited from main account (Last year it was weekly)
The Immediate Plan
So, we don’t have a lot to work with right now. Here is what we can start with:
- Stop our direct deposits to our personal savings accounts.
- Cancel Ben and Brenda’s Personal savings accounts.
- Decrease B&B’s allowance to $50 a month
- Cancel internet and cable
- Adjust cell phone plans to include unlimited data
- Find stuff around the house and sell it all!
- Cancel Brenda’s membership to YMCA
- Add Brenda to Ben’s LA Fitness gym membership ($30 a month)
- Submit Brenda’s insurance for the gym to receive the $20 off discount monthly
- Credit card usage limited to groceries, gas and other necessitates like diapers (We will come up with a limited dollar amount too)
Whatever money is left in our personal checking accounts we can continue to use as our allowance.
- Pay off the credit card first
- Pay off the vehicle
- Tackle the home equity loan
I know you are wondering why would we start paying on a bill with zero interest right now? Well, our answer is the Snowball Effect!
We will be using our credit card on a regular basis. We plan to limit our spending and get it paid off as quickly as possible. Then we will pay it off monthly as a normal expense. Who knows what the interest rate will be once the zero interest promotion is done with. That money will then go toward the vehicle. Once that is paid off, then we can use that money to go towards the big loan. Then I can focus on the big loan. If you have any ideas for us, please let us know. But, that is our plan for now.