Climbing Out One Family’s Adventure in Becoming Debt-free

That’s not a misspelling. Remember Snigglets? Snigglet: noun: a Word of no prior origin, that you make up on the spot. I think my personal best is “Commusion: the confusion created by taking a wrong turn on your way to work. Usually after changing work locations, a long detour or change of traffic patterns.“. Today I have a new one: taxtion.

Lately I’ve whined about getting traction on our debt. I think we may have some. Could taxes = traction? Maybe this year they do and I’m getting excited about it.

We did our taxes and are getting back about $7,500! Were I farther along this financial adventure I think I would lament a zero-interest IRS savings plan like that, but this year it’s just the shot-in-the-arm we need to feel like we’re making some progress.

Looking back at the State of our union, it looks like that tax return will nearly wipe out our first three cards. Yes! Now you’re talking!

I have been aching to see quick progress on that mountain of debt. Although barely 16% of our total debt, emotionally it will be great to be done with 50% of the accounts.

The substantial tax return brings up another issue, of course; why the hell am I giving so much to the government interest-free all year? That doesn’t make sense when all our focus is on paying off debt. So an hour with HR and on my company’s benefits web site led to a real raise in take-home pay.

First I stopped my 401k contribution. That didn’t hurt at all as the company stopped matching contributions not long ago. Next my exemptions were at 0. What the heck did I do that for? The IRS calculator said they should be 18 ( I know, weird ). I settled for setting it at 3 for now. I expect these changes to equate to $300 more dollars every paycheck or $450 more every month after taxes.

Finally I came across an unexpected windfall. Inspite of opting out of the dependant care flexible spending account our payroll company was still making deductions. I really should have noticed that on my paycheck stubs, but I didn’t. They were apologetic and will be putting the $961 they have deducted so far on April’s first check!

Ah… can you hear that? It’s my sigh of relief. For the first time it feels like this thing is going to roll.

Taxtion. My snigglet of the day. I encourage you to use it in daily conversation. I feel like it has gotten us off the starting block and moving forward. It may be a small debt snowball right now ( a Smebtball? I’ll let that one go ), but by God, it’s rolling!

the Dad