Inspired by Dave Ramsey’s Baby Steps to follow to get out of debt, I have officially begun what he calls the ”Debt Snowball.” Basically, the idea is to put as much $$ as possible toward your debt, while keeping yourself on a very tight budget with nearly every other area of your spending (okay, so every area… I was trying to make it sound a bit softer, ha). So here’s a system that is working for me:
As you can see, I have a lot of small envelopes that fit inside the large envelope. Each envelope is labeled with what the $$ is for, and when the $$ is gone, I can’t spend any more until the next paycheck. It is extremely helpful to have money I can actually touch instead of just swiping my debit card everywhere I go. Yeah, I tried the ”debit card budget,” but let’s be honest, it’s just a tad too easy to lose track and/or too easy to make excuses.
Total Undergraduate Debt: $13,000
Total Graduate Debt: $14,000
Projected Debt Payoff Date: December 2013
Setting goals and sticking to it: Priceless