The Budget

Oh did you miss how much my credit card company sucks? Please take a minute to read why I have to completely change my life and budget because my credit card company is a blow hole.

I have rearranged my direct deposits for the month and sorta made a budget for myself. I haven’t called my cable company to cancel my cable, mainly because I’m not at home and thus don’t have access to one of my bills with my account number on it. I’m going to see how much it would cost to have my cell be my source of internet per month and if it is less than the internet that I have at home or the same price I’m just going to cancel all of my cable services (I found out that I can get a USB modem through my cell company for free yesterday). Better, I think, to not have the temptation to add back the cable. I’ll probably at some point get myself a digital antennae, but not anytime soon. I have tons of shows on my computer that I can watch from here to eternity (or at least 6 months, right?). =)

After rearranging everything I realized that if I can keep with my $400/month budget, with a $100 reserve for unexpected expenses (like copays at urgent care and the like) and continuing to put $100 towards my E-fund, that I’ll be able to pay $600 on the credit card with “no effort” – i.e. without cancelling any services or making any changes. After making some of the life adjustments that I talked about before I should be able to easily get myself to $750 (without yet selling the car and not including any tutoring).

My goal however is this: Paying $1,000 a month on this horribly high credit card.

This is a pretty lofty goal, and essentially means that every month I need to “find” or “make” $250 that wasn’t there before. This can be from tutoring, teaching, filling out online surveys, grabbing change off the sidewalk, or simply not spending all of my money in my $400/month budget (this will be neigh impossible I fear). However, this is my goal. $250 OR BUST. Much like Dawn at Fighting Forclosure, who is trying to get an extra $900 every month, I realize that some months I’m going to get over $1,000 and some I’m going to get under. As long as I stay ON AVERAGE over the $1,000 mark I’m not going to beat myself up. But, that said, $250 every month is the ultimate goal here. This shouldn’t be terribly hard to achieve (I hope) – as long as I stick with my new budget for the month.

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5 Responses to The Budget

  1. Jessie says:

    I will be crossing my fingers for you!!

    I think that trying to achieve the $1000 on average is a great way to go. You don’t want to create goals that are so impossible to achieve that you set yourself up to fail.

    It sounds like this is pretty well thought out and you’ll be able to achieve the $750 with very little pain

  2. Money Funk says:

    Oh, the same credit card terms happened with me, too. It truly a horrible thing.

    I know you can save the extra money! The key, just do it in baby steps. My family is on this five month mission and I approach each week to meet my goal. And then baby step it each day to keep the spending or no spending in check. It’s worked 4 weeks so far and I am still on goal to getting these 4 cards PIF’d.

    Just be aware of each step you take and keep the determination! I am crossing my fingers, too. 🙂

  3. Leigh says:

    You can do it. Sounds like you are making great strides already.

    BTW – if it were me, I would cancel the cable and keep the internet – you can stream lots of tv over sites like hulu.

  4. MPP says:

    That looks awesome! I am really proud of the intensity you are putting towards all this. My only question–have you thought of adding more to your savings in addition to the debt? I think it may make you feel more comfortable if you reach about $1000 for emergencies. At least, that is what I would do. Good luck! I’m excited to see what’s to come.

    • SS4BC says:

      Honestly, I don’t know if my budget can take it. I’ll still be contributing to the E-fund every month – so I’ll get to $1200 by the end of the year (and $1,000 in October). I feel pretty comfortable with the fund that I have now (perhaps because I lived for years off of NO savings?) – It is large enough that if a $1,000 emergency happened, I’d only have to find $200 to pay for it – which isn’t TOO bad. =)

      I may change my mind in a few months. I’m fickle like that. 😉

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