Friday, January 4, 2008

Is it snowing in here?

So, after reading about the much-ballyhooed idea of snowflaking, I'm going to give it a go.

For those unfamiliar with snowflaking, the premise is this: any extra money earned goes directly to debt (extra money earned can include savings from sales/coupons, in addition to any income source that is not your primary income). This is related to the premise of snowballing, wherein debt with the highest balance/APR (depending on the indebted's personal preference) is paid most and other debt receives only minimum amount due.

My original goal is to use the snowflakes to pay down different debts each week. In addition, and this is definitely a break from all the snowflaking rules I've seen to date, I'm going to periodically use it to fund my Travel and Home accounts.

I recently got an amazing deal at Walgreen's (two boxes of hair color for under $5, when a single box is normally $10), and I thought "I should snowflake this money." This thought was a bit surprising to me, as I hadn't really been thinking about it. Though I must admit that I've read several bloggers talking about snowflaking (most notably at I've Paid for this Twice Already) , and it obviously got stuck in my head.

But I have a question: do you snowflake the money from sales only if it is something you would normally buy? There are things I won't buy at full price (e.g. different foods at the grocery), but I will if they're on sale. Do I include the $5 I negotiated in price on a Banana Republic cardigan missing a couple hook closures at Value Village count? Does the $2 I won on scratch (lottery) tickets count?

1 comment:

paidtwice said...

Vive la snowflake revolution! hee hee

For *me*, I don't necessarily do it per item but per budget - so if I budgeted $13 for haircare and I spent $5, then I would snowflake the difference, or if I would usually spend $50 on groceries in a week and I spend $35, I snowflake the difference (groceries I do on a monthly basis).

The lottery ticket - definitely a snowflake. In fact I made a similar snowflake at the end of the year from some lottery tickets in my stocking.

Good luck! :) :)