Welcome to the March 2016 Snowflaking Report!
As a reminder, I’m doing this once a month for the following reasons:
- We pay our minimum payment automatically around the 13th of every month, and I send our extra payment as soon as the payment posts to improve the likelihood that our Snowflaking payment will go entirely to the principal and not to interest.
- My monthly recaps are kind of long, so I’d like to take out some of the details to streamline them.
- Snowflaking will make or break the achievement of our 2016 Mintly Goal(s)!
Beginning this month, we are supposed to be budgeting $1504 per month as additional payments to these loans, but as that money is budgeted as part of our strategy to meet our goal, I don’t consider it “snowflaking,” really; however, I’m including it here for the sake of simplicity since it gets included in our big lump payment anyway.
What is Snowflaking?
“Snowflaking” can be defined as putting all of your extra income (often in small amounts) to your debt. For instance, if you do an odd job or have a side hustle, that money would go to your debt. If your mom sends you money for your birthday, you can send that money to your debt. If you get a refund on an item, that money can go to your debt. For more, see this.
Mintly Snowflaking 2016 by the numbers:
- $239 – amount needed per month to pay off all of H’s loans by our target of February 2017 (for more information on our debt, including the amount, please see this)
- $1091 – amount needed per month to pay off all four of our loans by our target of February 2017 (definitely our “stretch” goal!)
March 2016 Minimum Payment
I include this information because our snowflaking will continue to decrease the amount of interest we pay every time we make a payment, and tracking that decrease helps me see that we’re making a difference, even when it seems like we’re barely making a dent each month!
$391.83 – minimum payment we sent
$258.70 (66%) – amount that went to principal
$133.13 (34%) – amount that went to interest
March 2016 Snowflaking:
- $3,156.82 – amount we sent
- $3,156.82 (100%) – amount that went to principal
$0 (0%) – amount that went to interest
March 2016 Snowflaking Breakdown:
- $1,264 – Federal Tax Refund
- $150 – Swagbucks (<– referral link)
- $6.96 – Consignment
- $50 – H’s side hustle
- $277 – from money we saved to go to 2015 taxes for H’s side hustle that wasn’t needed (since we got a refund)
- $50 – American Express points (used for statement credit, then transferred equivalent from checking to Debt Eradication)
- $60 – from Mary Kay orders
- $236 – state refund (arrived almost a month later than our Federal refund!)
- $5 – my mom reimbursed me for a gift for L and rounded up – I snowflaked the difference!
- $1,057.86 – Budgeted extra Debt Eradication payment (this was all we could afford this month, as we had some expenses related to H’s job that we haven’t been reimbursed for yet)
Our current total student loan debt: $34,243.33! That’s a change of about $10,000 from September, which is pretty decent, I’d say!
I wanted to put more to this, but until H has his signed contract in hand for his job, I didn’t feel good about putting all of the extra money we saved for emergencies into our loans. If we put that money towards our loans next month, we could be on track to have H’s loans paid off by November 2016, with my loans being paid off sometime in April or May of 2017. I would really rather not, since our big goal is to have ALL of the loans paid off by February 2016, but this is already looking better than I was expecting even last month, so I’m pretty excited!