Here’s How Much I’ve Spent And Paid Off 5 Months Into My Debt Payback Journey

Legends tell of a man who promised the internet he would provide a written log of his monthly spending and personal debt payoff before proceeding to establish radio silence for about four months.

That man is me.

A lot has happened since my last article where I talked about how much I spent and saved one month into my journey.

I’d initially planned on writing monthly updates before realizing they would eventually become tedious and uninspired financial diaries. As a result, I’ve decided to write an article once every 3–5 months to ensure the following:

1. More substantial updates in regards to my debt payback. I think it’s much more interesting to see a fully formed financial snowman than the individual snowballs that comprises it.
2. Higher likelihood of these articles being read. I don’t expect anyone to pore over my writing on a monthly basis.

Along with breaking specific topics into their own sections, I’ll also be making a few changes to how I write about individual expenses. I’m opting to only write about specific expenses if I think they warrant additional context instead of describing every single grocery trip and car insurance payment.

Now, on to the good stuff!

Major Updates

If you read my first article in this series, I talked about buying a truck and spending more than $8,000 on modifications. If you didn’t read it, you now have a good idea of how reckless I’ve been with money before turning things around. I said the following at the time of publishing that article:

It’s my dream vehicle, I’m keeping it until it dies or I do, whichever comes first.

I must be writing these very words from beyond the grave because I sold the truck a few months ago. It’s living its best life with a new owner and there isn’t a day that goes by that I feel an ounce of regret about handing over the keys.

Why did I so suddenly go back on such a bold declaration? Simple, I want a house more than anything else money can buy right now. I did some math and realized I’d be spending a minimum of $38,400–$43,200. That’s $800–$900 a month over the next four years to own and drive a truck with a sticker price of $18,000 once interest, gas and insurance has been factored in. I’m not investing a down payment in an oversized grocery-getter.

R.I.P

Toyota FJ Cruiser

2019–2019

“Not dead, just not my problem anymore”

What did I replace my truck with?

Let’s talk my new rides! Yes, I said rideS, and yes I’ll explain myself in a bit. I started looking for older Toyotas on Facebook Marketplace and Craigslist since they can be had for cheap and generally run forever.

I quickly found my affordable holy grails — a white 1998 RAV4 and a black 1997 RAV4, both located in Dallas about half an hour away from each other. I contacted the sellers on a Friday night and booked a Megabus and hotel room for the weekend. My pockets flush with cash, I test drove, negotiated, and paid for both cars on Saturday, returning home Sunday afternoon in the white RAV4 with both titles and sets of car keys in hand. I bussed back up to Dallas the following weekend to drive the black one home.

I know what you’re saying — TWO CARS?! This is my idea of saving money?! I’m an absolute buffoon! A total clown with a built-in circus! What was I thinking?!

Here’s what I was thinking. My budget was $4,000-$5,000 and I was going to be paying in cash since the entire reason for all of this was to alleviate myself of car payments. I was initially looking for a first-generation two-door RAV4, as the following generations resemble generic jellybeans and I’d grown infatuated with how the two-door model looked.

There were two for sale by dealerships in New York and California for ~$5,000. I wasn’t going to buy a plane ticket and spend hundreds of dollars in gas and dealership fees to buy a cheap car, so I scrapped the dream and decided to look for a four-door model in Texas.

The white RAV4 showed up on Facebook Marketplace for $2,500, well within my budget! I managed to talk the seller down to $2,000 after some conversation and agreed to see the car that weekend. My mission was over!

Except it wasn’t, because I found myself window shopping on the Marketplace and stumbling upon the black RAV4 within minutes. I actually couldn’t believe my luck; not only was it the coveted two-door model I’d been chasing, it was also lifted and fitted with oversized off-road tires and painted matte black! At a listed price of $2,900, there was no way I was going to pass on the opportunity. I contacted the seller and negotiated a sale price of $2,300 under the condition that I would go and see it that same weekend.

The rest is history. Here are both cars parked next to each other.

I’ve named them Cookies and Cream and I love them like the children I won’t have for another 10 years.

Here’s a quick rundown on why I’m holding onto both cars:

• I paid a total of $4,300 for both cars. Neither will depreciate in price any further and I now have a backup/loaner car.
• The black RAV4 is an absolute blast to drive, it’s basically a go-kart with a manual transmission! I decided to learn how to drive stick shift just so I could buy this car. However, its storage space is nonexistent and its aftermarket exhaust makes it a bit loud. That transmission makes driving even more fun but it also makes heavy traffic a nightmare.
• The white RAV4 can carry more people and stuff and it’s an automatic, meaning traffic isn’t much of a hassle.
• Each one costs $35 a month to insure. As far as car insurance goes, that amount is inconsequential.

What did I spend and pay off?

If you’d like to see exactly what I spent my money on each month, I’ve included itemized statements further down the article along with the spending in each category I’ve established for myself — Necessary, Recurring, Groceries, and Treat Yo Self. If you’re only here for the numbers, they’ll be set as the cover image for each article moving forward and I’ll also include them in writing after discussing any significant updates in my financial journey.

Monthly Spend:

September 17 to October 17 — $966.25

October 18 to November 15 — $1,678.82

November 16 to December 17 — $2,458.89

December 18 to January 17 — $1,000.05

Total Spend: $6,104.01

Monthly Debt Payoff:

September 17 to October 17 — $1,563.91

October 18 to November 15 — $2,332.77

November 16 to December 17 — $2,458.89

December 18 to January 17 — $5,082.00

Total Debt Payoff: $11,437.57

What exactly did I spend my money on each month?

September 17 to October 17 — $966.25

Necessary — $326.91

• Carfax — Bought a Carfax to provide to potential buyers of the truck.

Treat Yo Self — $241.56

• Recurring — $238.89

• iPhone CitizenOne Loan — I traded in my iPhone and signed up for Apple’s upgrade program to get the iPhone 11 Pro Max. I’m fine upgrading my phone every year, even if it means I’m just renting the phones instead of owning them outright.
• Groceries — $158.89

October 18 to November 15 — $1,678.82

Necessary — $686.01

• Government Payments — Sales tax on the white RAV4. Can’t get your registration and license plates in Texas without paying this.
• Hotels.com — Hotel room in Dallas.
• Megabus — Bus fare for both trips to Dallas to pick up both cars.
• Groovy Automotive/Lube — State inspection on both cars.

Treat Yo Self — $505.66

• Ojos Locos — Went out to watch a fight at a sports bar and spent an obscene amount of money on food and drinks. Never again.

Recurring — $135.19

Groceries — $101.96

Annual Fee — $250.00

• This is the annual fee for the American Express Gold Card, which I’m happy to pay since it keeps my spending under control and offers solid benefits.

November 16 to December 17 — $2,458.89

Necessary — $1,166.91

• Government Payments — This was the sales tax on the black RAV4.
• Target — I restocked on a number of household items in bulk.
• GenuinePartsGiant/Paypal — Both cars needed some miscellaneous trim pieces.

Treat Yo Self — $607.76

• Home Depot — Treated myself to a toolkit that was on sale! This is what adulthood feels like! I hate it!
• Level 1 Improv — Decided to take the plunge and sign up for improv comedy classes that I’ll be taking in a few months! I don’t hate it!

Recurring — $418.09

• Neurosport — The past two months had been unsuccessfully ran through the now-cancelled Platinum card, so those failed payments were made up for this month.

Groceries — $213.85

December 18 — January 17 — $1,000.05

Necessary — $155.83

• Walgreens — Bought a bunch of snacks for a holiday party and managed to spend zero dollars on gifts this year!

Treat Yo Self — $358.55

Recurring — $235.42

Groceries — $250.19

Conclusion

The past few months have had some financial highs and lows. There were two months of responsible spending and two months where I should have left my wallet at home. Fortunately, most of those larger expenses are gone for good, as you can see from the phenomenal amount of debt I’ve been able to pay off in the last month alone. I’m going to do my best to keep that streak going.

I know I’ll never be the next Dave Ramsey because I won’t say no if a group of friends asks me to hang out and spend twenty dollars. I know there will be months where my spending will make me want to work on my flexibility for the sole purpose of kicking my own ass. Most importantly, I know I’ll be in a much better financial position by the end of this year and that will have made every bit of self accountability worthwhile.

Thanks so much for reading.