How We Jump Started Our Debt Snowball from $0 to $1000+

Hilary and I recently buckled down on our debt snowball and we can finally see the light at the end of the tunnel with our debt.  We found $1000 extra per month.  How did we do it?

4 Ways:

  1. Temporarily Stopped 401K Contributions –$525 / month
    • This was hard for me, especially giving up my employer match, but when I realized how big of a difference $525 a month can make towards debt snowball and that this would only be short term I was onboard.  One side note here is that my contribution was actually $600 per month but when I pulled this out $75 went to taxes leaving only the $525 for snowball.
  2. Cut HSA Contributions in Half – $115 / month
    • We have a high deductible health insurance plan and with 4 kids there is always the potential for something going wrong so we didn’t want to cut this completely but we agreed to cut in half for now.
  3. Contested Property Tax / Home Appraisal to reduce escrow – $260 / month
    • Property taxes went up a lot for us here in Houston, Texas in the last year because we forgot to do our Homestead Exemption.  Don’t make that mistake!  I went into contest my property tax appraisal because it went up by 40% vs. the max of 10%.  God’s favour was with this situation and the appraiser agreed to reduce the market appraisal and when my escrow finally recalculated this month it reduced our monthly payment by $260.
  4. Stopped the Bleeding with recurring subscriptions that we forgot about – $114 / month
    • We had all sorts of subscriptions like Hulu, Ipsy, Kindle unlimited, Audible, a newspaper, etc. which really added up here.  Don’t be enticed by the $9.99/month price tag.  Every dollar counts!  

With this snowball, it takes our debt payment from about $1800 to about $2800 per month.  But we’re not finished yet.  We are attacking our food budget and we are using the Every Dollar app to track our budget as a team.  We also have a goal to find $1000 / month from side hustle (Amazon, eBay, selling personal items).  More to come….

What did YOU do to kick-start your debt snowball?  Comment below!

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