I sold my second car yesterday and threw all of the money at my debt snowball, the check went out in today’s mail. I’ve gone from total debt of $12,412 on 12/1/15 to $640 on 5/31/16! It’s amazing what you can accomplish when you have a plan and stick to a budget. Thank you Tom!
We are having a huge neighborhood garage sale in two weeks and I’ve listed a bunch of stuff to sell on Craigslist. Baby Step 2 will be done by June 15th!
My company has been acquired by a bigger company and I’m getting some one-time extra money due to the acquisition. They are cashing out my 3.5 weeks of accrued vacation ($3,500) and giving me a bonus of $1,000 for every year I’ve been employed with the company ($7,000). A big chunk will go to taxes but this a big leap forward for Baby Step 3. It looks like my job will be stable for at least 2 years and likely longer. However, this change gives me more inspiration to continue to stay focused and fully fund my emergency fund to 6 months. It feels good that after having a difficult time this winter finally some things are happening that are positive.

If they are due before the first September paycheck then you should probably pay the bills first. Since I get paid every two weeks the checks do not arrive at a the same time each month. I have to watch what bills are due before the next paycheck and pay those first before I can figure that I have enough money left over to put towards the debt! I’d rather delay my debt paydown 2 weeks than make a late payment and get assessed late charges, or worse!