Another less-than-impressive month, but I'll get to that later. Until then, here are the balances:
The Debt:
Little Beast: $1,156.01
Big Beast: $16,206.83
The savings balance is over there in its rightful place.
The change in the savings balance is OK -- it's up $262 -- but the change in debt is not that great. It's down just $303, which is almost $200 less than it should be. Why? Well, there are a few reasons. The first is that I oversaved with my last paycheck. There was a healthy dose of overtime pay in there, and I used it to pay $150 toward the Big Beast (to make up for the Anthro purchases) and then put another $200 into one of my savings accounts. But then after rent, electricity, and some general living expenses (dry cleaner, the grocery store), things were tight. So I used the credit card to cover other things, like the $170 for car maintenance, a new bathing suit for the cruise, shoe repair, and -- and I hate this one -- 15 bucks for groceries.
And then yesterday I ordered a pair of sandals from Anthro.
Using credit cards is, for me, a slippery slope. And isn't it crazy how quickly it adds up but takes so long to get rid of?
But I do plan to make up for my transgressions, starting with next week. And rather than sock away my entire economic stimulus rebate in savings, I'm using part of it -- more than $200 of it -- to pay for those purchases I made using the credit card. It's for the best, I know. Still, it's frustrating.
But at least it will make a difference for the numbers next month, huh?
4 comments:
I've been reading your posts and you are making more progress than you give yourself credit for!
But, in regards to your savings, its recommended(from what I have learned through my financial literacy quest) to only hold one month or even $1k in your savings-they call it a baby emergency fun- during debt paydown. You could wipe out 'the little' beast with part of your savings.
I understand the part about the cushion but you have a sizeable amount in there and unless the savings rate you are earning is higher than what you are paying in interest, it wouldnt be worth.
I recommend reading "The Total Money Makeover" by Dave Ramsey.
I'll keep checking back kay?
Thanks, Maria, for stopping by and leaving a comment. :-)
Yes, I know. I've debated this whole "increase savings vs. pay off debt" issue many times in my head. While $1,000 is the recommended amount for an EF, I live in a very expensive area and a thousand bucks won't go far. One big emergency and it's over. I'm willing to forgo the scant difference in interest rates for my peace of mind and a bigger cushion.
If I reach a specific goal by the end of the year, though, I will likely put the savings plan on hiatus and concentrate on the debt.
And thanks for the book recommendation! Another book to add to the list ...
Just found your blog and am very impressed with how much progress you have made in a year. I'll have to come back and see how you're doing. Is your savings also an emergency fund, or are you planning to do something with it? If it's an EF, getting rid of debt would be faster if you focused more on it. After that you could still get up to your 10k goal by your target date. I do recommend Dave Ramsey's book but am not in total agreement with everything he suggests, like stopping 401k to get out of debt. Either case you're doing just fine and are paying attention.
hey... you are making progress.
how about setting yourself a fixed monthly allowance for clothing or shoes or whatever, since you seem to like to shop online.
I think budgeting free money helps you control things.
from Jim's blog.. I thought you were younger too
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