I am really into snowflaking and or snowballing debt repayment. If you follow Dave Ramsey at all, this is the method that he uses in his book. Anyhow, since I am gazelle intense (ha, another Dave reference) on paying things off, I thought I’d start a new series to hold myself (and you if you’d like) accountable.
So, what constitutes a snowflake or a snowball? Essentially, for me, it’s any extra money that comes my way that I wasn’t planning on. For example:
- Things sold on eBay, craigslist, or unused items returned.
- Extra paycheck if you are on bi-weekly pay.
- Any extra money from a 2nd job or overtime.
- Any raises received.
- Any money received in bonuses.
- Any tax refunds.
- Any extra cash received as gifts, etc.
This past week I sold my Blackberry Bold 9930 from Verizon on eBay for $320. I love that phone, however, I have the identical phone ordered for me at work. I paid $199 for my phone and ended up making a tiny profit. I also worked some overtime, and received $400 additional in my paycheck. Those two things alone added to a $720 extra payment to my targeted debt, which in this case is my visa. This payment is on top of the $650 that I just sent them on 3/1, making my total payment to them $1370.
On my spreadsheet
I actually projected an additional payment of $1350 for the entire month of March. This bit of extra money will make my goal achievable much faster. I still have 2 pay periods left and just got a raise yesterday where I will have a bit of extra money coming in. My biweekly payment of $650 will be increasing to $760, or approximately $1520 a month. I haven’t had the time to play with my spreadsheet yet but I am certain that this will make me debt free sooner than May 2014!