19 Aug
But, but, but — I thought..? ARG! When Your Snowball Payment Becomes the Emergency Fund
The Millennium Falcon for Christmas in 1982, visiting Scotland, being debt-free… From an early age I’ve always easily gotten my heart set on things. You’d think I’d learn to manage my own expectations better.
I am preparing our six-month update for this journey and am excited to see we are were paying off another debt with August’s snowball payment.
It is fascinating how much I had my heart set on that milestone. Instead of paying that debt off completely we are putting $300 into one of the cars for its 160,000 tune-up, an extra $100 into electricity for a very AC-heavy month, and an extra $200 toward an increased minimum payment on another card.
What that all boils down to is this: we are paying an extra $1,300 toward debt this month instead of $1,900.
You may be saying to yourself something along the lines of, “What the hell? You’re not even dipping into your emergency fund to cover SIX HUNDRED EXTRA DOLLARS. Why are you complaining?”
You’re right, of course. Living on a budget with a plan has given us a tremendous sense of control over our lives. Without it, we would undoubtedly be using credit to pay for this month’s unexpected expenses.
Nonetheless, I let myself get all excited about paying that debt off and moving on to the next one. In fact I had my heart set on it.
Big deal, right? Next month it will be gone. I’m just sure of it. Nothing will come up to stop that snowball, right?
By-the-way, I did get the Millennium Falcon that Christmas. Scotland, prepare yourself.
the Dad
Posted by rtc on 08/19/09 at 11:08 am
I have the same mindset about looking forward to getting rid of debt. It is disappointing not to meet that payoff goal. On my two year (so far) journey, I’ve rarely paid off debts by the time I orginally thought.
The thing that kept me going is seeing how much better off I am than I was, even though there were bumps in the road along the way.
You are right–you will pay it off next month!
Posted by Perky on 08/19/09 at 11:27 am
I totally know how you feel! I was also set to pay off a card this month and have had to put off the payment in full until next month. On the greater scale of life, not so bad, but still……… not what I had planned! Of course, the nearly $2000 in veterinary bills this past month were ALSO not what I had planned! When it comes down to it, I suppose I have to choose healthy happy animals and a credit card payoff in September over suffering and/or dead animals and an August payoff.
Posted by Danielle on 08/19/09 at 1:18 pm
Oh Dad! I can’t tell you how many times we had mini-emergencies that interferred with our “proposed” snowball payment for the month. Totally know how you feel!! It’s okay though, because you’re right. That debt will be there next month for you to pay off and it will feel GREAT!
Posted by Tutu on 08/19/09 at 2:16 pm
You aren’t where you want to be, but you’re so far away from where you used to be!
I had a hit and run a month ago – came out to my car and it was smooshed. $ 1500 and husband and I have to pay the $ 500 deductible. sometimes life is just not fair! But that’s life, right?
Posted by Jeffrey Johnson on 08/19/09 at 2:28 pm
I thought I be debt free by end of 2008 but then recession hit. Few weeks ago set date of Summer 2010 to be debt free. I really love to be debt free by end of this year. I am working as hard as can to reach it so can be debt free by end of year but who cares as trying my hardest. Got offer today from one that they match my extra payment this month and looks like it be gone as looks like I totally pay it off. Not its turn but it too good to turn down. I pay off the ones in front of it next month or October.
Posted by Sharon on 08/19/09 at 3:49 pm
I feel your pain….I thought I would have at least $15000.00 in an emergency fund by Christmas…um, no, many other things have come up, including an 8200.00 heating and airconditioning expense….Now I’m hoping for $4000.00 by Christmas!
Posted by jpkittie on 08/20/09 at 3:32 am
oh no — just keep on pluggin on…. you are doing amazing – and like it has been said – that is wonderful that you were able to just fit that into your budget for the month!!! That is nothing short of amazing right there! (I just love the months that I am showing any sort of reduction in debt & not going the other direction!!!)
Posted by Kelsalynn on 08/21/09 at 6:21 pm
I won’t tell you “Don’t worry”, “You’re still doing great”, “Yeah, but you paid with cash, not credit” ….
I won’t tell you any of those things because I know it still stings and it’s still a disappointment when you wanted to send X to your debt and instead, you sent Y.
Our 3rd month doing the snowball, we were hit by a drunk driver and it totaled our car. We were in limbo until we knew what was going on with the car situation and it was terrible. I hated it.
What I will say is don’t dwell on it. Make Murphy wish he never came knockin’ on your door… =-]
Posted by Erin on 08/25/09 at 5:15 am
Yep, that was our month in July. Car accident (had to pay deductible), very sick doggie, and extra repairs on the other car (so I could drive it while other car was in the shop). About $1500 in unplanned expenses which threw off snowballs for July and August. We still paid a little but not what I was expecting. It’s so disappointing, isn’t it? Sorry to hear of your woes. Nothing else to do but keep plugging along. Long time or short, we’ll get there eventually.
Posted by Tam on 10/05/09 at 5:36 am
Remind me never to ride with someof you people!
Husband and I talk about this a lot! We stay so excited about paying off our debt that we want to pay MORE!! It’s wild. You are doing beautifully! You will love Scotland….