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?
- 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.
- 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.
- 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.
- 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!