March 2025 Debt Free Journey Update
We got our tax refund!! We are now 1/4 of the way through the year, and I am pretty happy with our progress. Read March’s debt-free-journey update below. You can read last month’s update here!
Find all of our debt-free-journey updates here!
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March Recap
Here is a recap on March!
Tax Refund
This month, we received our tax refund, so we were able to make a nice leap in our debt payoff progress!
This was probably the biggest tax refund we have ever received. We added a new dependent (our fourth baby), and our income was low for a family of six, so that’s why we received a large tax refund.
We put about 74-75% of our tax refund towards our debt. 10-11% of it went into our emergency fund. The remaining 15% went towards some extra personal spending money for my husband and I, clothing that the kids and I needed, A NEW MICROWAVE (explained this in January’s update lol), maybe a few other small things, and then gas and food for our family trip (I will explain this more below!).
Emergency Fund
We did complete our emergency fund this month, but by the end of the month, we had to use some of it. It’s totally due to my lack of control and paying attention to the budget. We only need to add about $100 back to our EF in April to bring it back to the full amount.
I am working on being more strict and diligent with our budget now, so hopefully this doesn’t happen every month. We are also implementing a buffer of $100 in our checking account to see if that helps.
So we are temporarily back on Baby Step 1. We should be back on Baby Step 2 in April!
Family Trip
At the beginning of March, we went on a family trip to Wisconsin Dells! The reason we were able to do this is because we actually purchased the trip last summer. We spent $300 last summer on a timeshare deal for three nights in a two-bedroom condo with waterpark and theme park tickets. AND we received $200 in gift cards! Isn’t that crazy??
This was our first time doing a timeshare presentation, so I was nervous about how it would go. However, I was pleasantly surprised, and we really enjoyed our trip. I mean, we took four kids 5 and under, so it was as enjoyable as a waterpark trip can be with littles ones haha. The timeshare presentation was about two hours long, and they didn’t try to pressure us. Overall, I am glad we did it, but I don’t see us doing it again.
Since we already paid for the trip, we set aside some of our tax refund for the extra gas and food we were going to need. That is partly why you will see below that I spent more on groceries than normal.
Spiritual Warfare
I also wanted to give a little update on my mindset and mental health this month. Since we re-committed to our debt-free journey at the beginning of the year, I have been struggling immensely with my mental health. I think I may be under a spiritual attack because I am committed more than ever to live within our means, tackle this pile of debt, and honor God with our money and our lives. And the enemy wants to sabotage it.
I have felt constant waves of anxiety, fear, hopelessness, and confusion that have come on suddenly the past couple months. It sort of feels like I am being harassed and bullied into quitting, but I’m not giving in. I’ve had some really low days, but I am using the strength of the Lord to keep keeping on with my daily responsibilities.
On the bright side, out of this season of hardship was born some exciting future possibilities. I am still waiting to see how God directs us, but I may have some news in the future (possible career change?). After trying to figure things out on my own too many times, I cling to the Lord to guide us because I know His plans are better.
Now, let’s get into the numbers!
March Stats
March Budget Month: February 25 – March 24, 2025 (We base our budget month on my husband’s pay periods. He is paid semi monthly on the 10th and 25th every month).
Current Baby Step (as of 3/31/25): Baby Step 1
Giving: 0.69% (Goal: 1% of income)
Groceries: $1,336.92 (Goal: $1,000)
Amount Paid Towards Debt: $7,218.09 (Goal: Put as much as possible towards debt)
Amount Saved: $988 (Goal: Finish emergency fund)
Debt Update
Since we received our tax refund at the end of February, it went towards our March budget because our March budget went from February 25 through March 24. However, I check my debt balances on the first of every month, so the numbers below don’t reflect the tax refund (it is seen in our debt update last month instead!). These numbers are from April 1 (to show the debt balance after March is finished).
I think I will start recording our debt balances on the 25th every month instead of the 1st from now on, so that it’s not confusing and goes along with our budget month. I just wanted to clarify! Now, here are the debt stats:
Starting Balance (3/1/25): $55,960.61
Ending Balance (4/1/25): $55,512.44
Change in Balance This Month: -$448.17
Change in Balance This Year: -$7,862.56
Total Change in Balance (Since 1/1/25): -$7,862.56
How I Track Our Budget
Here is the Google Sheets template I use to budget, track every single expense, and organize our personal finances. Use Code HOUSEHOLD for a discount!
Other Financial Resources I Used This Month
- Faithful Finances: Daily Devotions for Godly Money Management by Jessi Fearon
- Breaking Free from Broke by George Kamel
- Printable budget planner
- Free debt free trackers
- Free debt snowball calculator
See you next month for our April update!
