Finance 101

10/21/09: Starting point
Seven cards for a total of $6,887.96.

10/24/09: Paycheck #1
Five cards for a total of $6,597.63.
Total spent towards debt repayment: $290.33.

11/6/09: Paycheck #2
Three cards for a total of $6,651.46
Total spent towards debt repayment: $439.66.

Oh, good lord.

Although I've knocked out two more cards and put $439.66 towards debt repayment, I've actually ACCRUED debt in the last two weeks.

This is what happened: one big surprise (Lucy's foot and the $190 bill) and a bunch of frittering away with the Visa. Sure, I needed new clothes! How about dinner out? Why not? I've got a Visa!

Okay, so this has to stop. Like, right now. The Visa goes back into the wallet, not to be seen again UNLESS I have another Lucy-needs-the-vet kind of emergency. And no more buying bagels from the coffeeshop!

I can't believe I accrued debt. Ugh! I'm really disappointed with myself. I'd planned on doing the daily budgeting with the PearBudget spreadsheet starting in January, but perhaps I need help now. UGH!!

1. Emergency Savings: $549.56

2. International Travel Fund: $250.00

3. Fun Savings: $22.54



1. My Emergency Savings account continues to climb. Excellent!

2. The International Travel Fund also continues to build. Huzzah!

3. My Fun Savings fund, however, is languishing. I'm thinking about closing it, actually. I don't keep enough in there to meet the minimum, so the bank took out three dollars! Ugh! Right now I'm using my regular checking account for both necessities and fun, so the Fun Savings account isn't really serving a purpose. I'll have to think about this - and quickly. I don't want to lose another three dollars.

Ah, savings.

I have three savings accounts currently accruing cash:

1. Emergency Savings
2. International Travel Fund
3. Fun Savings

1. The Emergency Savings fund (AKA Bail Money, Life-saving Surgery Fund, etc.) needs to have $1,000 in it. I am moonlighting as an adjunct professor at the local University, and am depositing my professorial $$$ directly into that fund. I will attain the goal of having a $1,000 savings account by the end of December this year.

2. I am putting $250 into my International Travel Fund account a month. $125 a paycheck is manageable, and I pay it out to myself like a check.

3. Fun savings: what I have left in my general checking account at the end of the pay period fortnight. Whether it be $30 or 30 cents - into Fun Savings it goes. This money can be spent on fun stuff: local travel, dinners out, fancy new shoes, what have you. It's also a nice "not really an emergency" fund.

My savings, to be updated fortnightly:

1. Emergency Savings: $441.44

2. International Travel Fund: $125.00

3. Fun Savings: $25.54

Let's talk about my debt.

I owe roughly $6,800 in consumer debt. That's a big chunk of change, but certainly not insurmountable. Especially since I've just been promoted (with a nice raise) and I can actually start to pay it off.

Ideally, I'd like to be completely out of consumer debt by the end of 2010. That's 14 months away, so that would be an average of $485 a month. "Not a problem," I'd say. I just threw $300 at my debt with the first fortnightly paycheck that showed my raise.

But life happens. On Saturday, my dog Lucy Fur cut one of her paw pads. $190 and one cone-headed dog later, I see why I can't count on smooth sailing from here on out. I think that the end of 2010 is a very reasonable timeframe for paying off my debts without never spending another dime, ever.

I'll update on the Debt tag once every two weeks, when I pay off another chunk. I'm going to be paying them off from highest interest to lowest (sorry Mom and Dad, your no-interest loan gets paid back last!) with the exception of a few little store cards that I can knock out with this first and my next paychecks.

10/21/09: Starting point
Seven cards for a total of $6,887.96.

10/24/09: Paycheck #1
Five cards for a total of $6,597.63.
Total spent towards debt repayment: $290.33.

PS - we'll talk about my student loan debt, uh...later.

1. Save $1000 in an emergency savings account.

2. Pay off all consumer debt, starting with the debt with the highest interest rate and snowballing on down.

2a. Save $250/month for international travel (Bavaria with friends by September 2010).

3. Save 6 months living expenses ($10,000).

3a. Keep $2,500 in accessible savings, invest the rest.

3b. Continue to set aside $250 a month for travel.

4. Pay off student loans.

5. ?

6. Profit