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Author: ishtarastarte Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308684  
Subject: Re: How to get back to financial health Date: 2/4/2014 3:00 PM
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Because I'm kinda bored today, I plugged your numbers into a snowball calculator: http://www.flatbow.com/Snowball.html

If you start with your highest interest card and throw all $250 extra payment towards that card, it will be paid off by Oct, then you snowball that entire payment into the next highest interest rate.

Doing that has you out of non-mortgage debt by May 2018.

But, a couple of notes:

- you gave us some nice round numbers. I doubt your real numbers are that round, so you need to make sure you're using the right numbers.

- you mention that Still seems like we'll never get out because each year something (car repair, house repair, medical bills) comes up, . . . Here's the thing, these things are going to KEEP coming up. Every year. Every month. Over on the YNAB forums, there's a saying that there is no such thing as a normal month. You have to start including these things in your plan, your budget.

It's not easy to do at first. I have a hard time because of low/unstable income. But when my income is steady, I can do it.

You need budget line items for car repair (you know they're gonna happen!), house maintenance (something always needs fixing), medical, dental, orthodontia, kids clothes, clothes for you, car insurance, house insurance, etc. Some people have an "oh, crap!" fund, or an "unexpected expenses" fund in their budget.

When people make budgets they often forget those expenses, but they can be planned for.

Looking back at the last year's expenses gives you a rough idea, but it is rough, and it will always be changing (which is why You Need A Budget is a great tool, and I'm sort of evangelistic about it - but not the only one that uses it).

You should try to build at least a "mini" e-fund so you can take care of these unexpected issues - because they aren't really unexpected.

And then start snowballing.

I bet there are things that you can do to cut expenses somewhere and/or find more money to throw at the snowball.

Ishtar
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