Ch-Ch-Changes! August 2017 Broke on Purpose Debt Payoff Report

Is it just me or did Mother Nature turn the heat off as soon as September rolled around? It’s September 2nd, and I’m curled up on my couch with thick fuzzy socks on, wrapped up in a big blanket, and wondering if I should’ve consumed some sort of Pumpkin Spice flavored beverage by now. The irony of the whole thing is that this massive shift in weather seems like it’s also signaling the significant change that is about to take place in the Wright household.

August was a great month. I celebrated a Birthday, Broke on Purpose was featured in Glamour Magazine (September 2017 issue), Marcus started a part time job at a local store to bring in extra income, and I was also blessed with the opportunity to begin my post graduate career in a role at a wonderful company.

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Of course with this new role there comes an increase in pay which I’m makes me very excited. I admitted on the Facebook page that in the past, whenever I received a pay increase, I would usually improve my lifestyle to go with it, landing me back in the same spot that I was in before the raise even occurred. This time, with goals in mind we’re planning to be smart with our blessing.

Our plan is simple.

We’re going to continue creating a budget as if I was making a graduate student salary. With the excess funds, we also plan to do the following beyond paying off our debt.

Starting /Restarting to contribute to 401k while maxing out our Roth IRA’s,
Increasing our savings from 1-month salary to 3 months salary (remember how I told you I didn’t feel comfortable with what we had any more in this post?)
Starting a sinking fund for our pets boarding cost since this position will require travel and there may be a time Marcus and I are both on the road.
Lastly, we plan to increase our monthly spending allowance from $200 to $300 a month.

While it’s tempting to start upgrading our lives, I can hold off a bit longer until this debt is gone.

The Debt PayOff Report

This month we were able to put $3623 towards our debt. Marcus securing that part time job was a huge help as we were able to make weekly payments on our student loan which helped to reduce the amount of interest that accrued. Remember, your student loans accrue interest EVERY SINGLE DAY!

Amount towards debt: $3623

Remaining Balance of $12,000 loan $ 2138.00

Amount paid since living Broke on Purpose (29 months): $92,575.00

I can’t believe we’re less than $7500 away from paying off $100K. I also can’t believe that we’ve stuck with this journey for so long! There isn’t a day that goes by where my debt doesn’t remind me that I can’t afford to do something. At the same time, I also get hype about making a payment because watching that balance drop is oh so satisfying. Share with us in the comments below your results from August.

Also, be sure to check out the new Broke on Purpose Money Envelopes in the Create Your Own Bundle Store