A Necessary Pause

This week brought a victory for me: my credit card balance is at zero!  This is really, really, really great to see:  



So, now comes a necessary pause in my debt reduction.  In Financial Peace University, the three initial “baby steps” are 1) Put a $1,000 emergency fund in savings, 2) Eliminate debt and 3) Put money to cover 3-6 months worth of expenses into savings.  

As I mentioned earlier this month, I had put away $1,000 right when I finished FPU, but a rough financial year quickly drained it.  With a low salary and high credit card payments, I simply could not pay my bills each month and have enough left-over to save.  When I was offered a decent-paying summer job, I decided I was going to get rid of my credit card once and for all and eliminate a $100-$150 monthly bill, and use the money saved to build up my emergency fund.  Granted, if I had built up the fund first, I wouldn't have gone back into debt when I went two weeks without a paycheck or when my cat came with some unexpected expenses.  However, I still think I made the best decision by eliminating a small debt with such high payments and interest.  

I admit, it's tempting to just keep going- it's satisfying to see the numbers drop and to see the marbles in the “Debt Paid Off” jar increasing.  But, if you’ve ever run a marathon, you know that you need to stop at the water stations- it might save you five seconds initially but dehydration will cost you much, much more time by the end of the race- or even stop you from finishing.  Building an emergency fund is the water stop on the race to debt elimination.  Keeping a credit card in your pocket “for emergencies” just causes people to fall back into debt.  

So, my new sub-goal: by the end of February, I want to have $1,000 in my savings account.  This is for emergencies- a car breaking down, an unexpected veterinarian visit, or an urgent trip to see family would be examples of emergency fund uses.  A cute pair of shoes on clearance, a spontaneous night out, or failing to plan for a Christmas or birthday gift are not times to use an emergency fund.  This is another ambitious goal- I’m not sure if I can make it happen, but, I won't know until I try.  Making my goal public by posting it in this blog gives me reason to push myself!  

Since my last entry:
Sold some CDs using DeCluttr: $6.20
Audit from Field Agent: $4.00
Sold a swimsuit on eBay: $7.41
(The teal one!)

Paycheck from tanning studio: $89.70
Squeezed out of regular paycheck via budgeting: $126.44
Total paid off in two weeks: $486.44
Total paid off in 2017: $787.54
Average debt per day: $31.50
On track to eliminate: $11,498.08- need to find a way to almost double that!  


But...if I can pay off $787.54 in 25 days, then I can come up with $1,000 in a month...right?!  

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