April Snowflaking Recap – Laaaate

I honestly didn’t even realize I hadn’t done a Snowflaking Recap for April until I came here to write up my monthly recap!

Oops.

Better late than never?

So, here it is: the April 2016 Snowflaking Report!

As a reminder, I’m doing this once a month for the following reasons:

  1. 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.
  2. My monthly recaps are kind of long, so I’d like to take out some of the details to streamline them.
  3. Snowflaking will make or break the achievement of our 2016 Mintly Goal(s)!

Beginning last 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; normally, I would include it here for the sake of simplicity since it gets included in our big lump payment anyway. However, this month we weren’t able to put aside that $1500, which made me very, very sad. We used it on replenishing our Sinking Fund (which we seriously depleted when H went on a work trip that he has yet to be reimbursed for) and had to also put some extra away in savings for an upcoming business expense for H (to be written off on our taxes, of course!). So this month did not go as well as I’d like.

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!)

April 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
  • $269.43 (69%) – amount that went to principal (last month: 66%)
  • $122.40 (31%) – amount that went to interest (last month: 34%)

April 2016 Snowflaking:

  • $488.16 – amount we sent
  • $484.23 (99%) – amount that went to principal
  • $3.90 (1%) – amount that went to interest

Current total student loan debt: $33,408.71

April 2016 Snowflaking Breakdown:

  • $175 –  Swagbucks (<– referral link)
  • $51.98 – Consignment
  • $214 – H’s Side Hustle
  • $25.18 – Pact app payout
  • $20 – Extra $20 we put towards loans this month because I made a typo when I made the payment!

Reflection:

Nothing too momentous happening, except that I was hoping that H’s contract would have come in by the time we were sending the extra payment, because I really wanted to send the extra money we saved in our emergency fund! (More on our changing financial strategy in an upcoming post!) As I mentioned above, our plan was to pay a budgeted amount of $1500 each month in addition to our minimum payments and whatever we could snowflake. Unfortunately, we couldn’t do that this month, but that money did go to good use and was not frivolously spent. A far cry from where we were 10 years ago, I remind myself!

 

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