February Budget and Debt

Happy Groundhog’s Day!

New month, new budget.

We are attacking this month a little differently when it comes to our spending money. I decided to use the cash envelope system. I have envelopes labeled with each category and a certain amount of cash in it. I can only spend that cash! I really think it will be beneficial. My grocery budget will stay the same because it seemed to work out well last month. It actually makes me eat all the food I buy; we used to have a tendency of throwing stuff away. I made a separate budget for household goods/toiletries because I knew I was going to run out of a few things this month. Finally, I kept my entertainment/other budget the same and hopefully we can stay below it this month! I am giving myself a 25 dollar limit per week and my husband will get the same. Essentially, we want to stay below 50 bucks a week which is a total of 200 dollars a month. The extra 100 dollars is for anything that might come up.

Here is the breakdown of our budget.

FebBudget

I zeroed out my budget meaning I allocated every dollar we are expected to make. Notice… if all goes as planned we will be able to put $2,880.77 to Sallie Mae alone! Whoo hoo!

February=Valentine’s Day. I didn’t budget for anything because…well we aren’t physically together and we decided that this year we aren’t going to be getting any gifts for each other. Sad face. But it will be worth it when we can buy amazing gifts or do amazing things since our money won’t be going towards debt!

Next, I will show you the breakdown of our current debt.

FebDebt

Some things have changed from last month. I found out our minimum payment for the Parent Plus loan is $465 not $400. Additionally, I thought when I changed the payment plan for FedLoan to standard it would be a minimum payment of $185, but it is only asking for $142. I haven’t decided if I will pay $185 or $142 yet but I budgeted for $185.

In the past when I made payments to my debt I never actually realized what my running total was. It is kind of sad to know you paid $400 but the loan total amount only went down $70! (for example look at the parent plus loan starting amount and current amount) If you currently don’t keep track of your running total, I highly encourage you take a look for a couple months. It is such an eye-opening experience and makes me want to pay off my debt even more! So much money is just going to interest. Yuck.

Beside each loan name, I have a year listed. That is the year the loan is expected to be paid off if I just continue to make the minimum payment. I couldn’t find the information for BND or Parent PLUS. All I know is that in 2032, when I am 44, I do not want to still be paying off our student loans!

Good luck in February! Remember, it’s a short month so take advantage!

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