Summer Budget 2010

As many of you are aware, I won’t be teaching over the summer. Also, tutoring slows down a lot in the summer. So I will be living on just my main job income for the coming few months. Essentially I’ll be making about $900 less per month that I am now. This may seem significant, but since all that extra money was going into either my E-fund or my debt, it actually won’t effect my day-to-day living budget – only how much I’m able to save/pay down debt.

My last paycheck for the spring semester at the community college will be May 21st. So this budget will come into effect starting June 1st. All the money that I get from the community college between now and June 1st will be saved away into my Emergency Fund – to help bulk it up in case I need to move in August.

So here is a visual representation of the budget that I’ve put together for the summer:

I know that it probably looks pretty confusing, but it isn’t really. I have 4 main accounts that I put my money into.

Account 1 (colored pink): Bill Paying Account. This is the account where I deposit money that goes to pay my bills. Rent, credit card, student loan, water, cable, ect. I don’t have any spending money that goes in to this account. I just use it to pay bills.

Account 2 (colored purple): Spending Account. This in an ING checking account. I pay for food, toilettries, dog care, entertainment, clothes, ect out of this account. You can see at the top that I have listed two different amounts. $146 for spending money and then $400 for weekly spending. How I have found to work  best for me is to deposit at the beginning of the month a small “lump sum” of $146. The $400 that is listed as my “weekly spending” is originally deposited in my ING Savings account and every Friday I have an automatic transfer of $100 into my checking account.  I do this for a number of reasons, but mainly that it helps me from blowing all my cash and having nothing for the rest of the month. Getting paid only once a month makes it easy to do this, so giving myself my spending cash in weekly increments helps keep crazy spending out of control.

Accounts 3 & 4 (colored purple): Savings Accounts. I have two different ING savings accounts. One is my E-fund which I will be depositing $100 in every month. The other is my year savings, which gets $190 each month. The yearly savings account pays for things that I know will happen each year: car registration, christmas, dog vaccinations, ect. I divide the total cost of each of these things by 12 and then pay for them little by little each month. This way when they hit I’m not scrambling for cash. The Emergency Fund is just that: for emergencies. I currently have $2,132 in my E-fund. My goal is $5,000 if I get a full faculty position starting in August. If I don’t then I’ll reign that back down to $1,200 for the remainder of the year and just put the extra cash on my debt.

So the losing the extra $900 I cut back on the following:

  • Credit card debt: Dropped down from $1100/month to $500/month
  • E-fund savings: Dropped from $500/month to $100/month

All in all lifestyle wise I shouldn’t notice a difference in my loss of income, only a difference in my rate of paying down my debt. Keep in mind that while I will only be paying $500/month on my credit card that my minimum payment is $330. So I am still paying more than my minimum and still making some progress. Just not as much as I ideally would like.

If I don’t end up moving, I will be teaching a class in the fall at the community college in the evenings. Likely half the load that I currently half – which means an extra $450/month. My first paycheck for the fall would be September 10th. So I will need to make up a new budget in September no matter if I end up moving or not.

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