Pimp Your Finances

It’s that time of the month again. No, not that time of the month. I’m talking about my update on getting out of debt!

February was a great month for me. I used my tax returns to pay down 23% of my debt. However, I didn’t make nearly as much progress in March.

I paid off another 2.8%, which isn’t that good, but I’m still on track to achieving my goal of getting out of debt this year.

The red and green squares are visual reminders of my progress. Each time I pay down another 4%, I change the color of one square from red to green.

I didn’t get to change any squares this month, but I did make some progress, even if it wasn’t that much. Why didn’t I make more progress? Two reasons.

First, I took two weekend trips. It was worth it. I love travelling, and had a great time with friends and loved ones. I didn’t use credit on either trip, but my spending did eat into my debt payments.

The second reason I didn’t make as much progress is that I’ve been saving all all of my extra money for a landscaping project. Our irrigation is out of control. Our back yard is a muddy mess, and water is flowing towards the house in a few spots.

I need to hire someone to do this, as I’ve tried several times and failed. I’m not going to put my house and foundation at risk, nor do I want to deal with a tore-up yard and muddy dogs.

It’ll cost a pretty penny to get it fixed, but luckily I saw this coming last month. I’ve set aside a good amount, even on top of my other commitments (like my emergency fund, vacation fund, and paying down debt).

My March progress was disappointing, but I’m still on track to accomplish my goal of being debt free by December 31st. Even after a slow month, I’m a little ahead of schedule.  By this point, I should be 33.33% of the way there.

However, most of my progress came from my tax returns, which only happen once a year. I need to pay down $867 a month if I’m going to do this. Right now, I’m only setting aside $700, which is good, but will still leave me short in the end.

So what’s my next step? First, I’m not going to get discouraged. I’m going to keep plugging away. And second – I’m going to rework my monthly budget to make sure this goal actually happens.