Current Status:
Total credit card debt $6000.00
Checking account $1000.00
401K investment $1,659.00
Monthly Net Salary – $2800.00US
Monthly Deficits:
- Rent $590.00 (rent-controlled apt inherited from grandma)
- DirecTV $117.00
- Student loan $131.82
- Gas/Elec $ 60.00
- Verizon cell $ 70.00
- Gym 48.00
TOTAL: $1016.82
Ok, that took like an hour to figure out. So my plan is to knock out my bad debt ASAP. I’m thinking of allocating $1,000.00 per month to my credit card payments. That should knock it out in about 6 months. DECEMBER 2007. ARGHH. The idea is that I STOP charging while I’m paying off said debt. Said the chica who just spent $268 on this season’s Marc Jacob Aviators. sigh.
Anyway, I digress. According to my brilliant plan there should still be $783.00 leftover. I should save at least half of that and leave the rest for miscellaneous spending? Of course I must try to adapt a more frugal lifestyle. No, I just need to stop shopping.
Total spending today:
$7 cab ride to work (I was running late and had an early meeting!)
$6.00 spicy tuna roll for lunch
Not so bad compared to yesterday or the day before :X
I think I’ll also sort out some designer labels from my closet and put up for auction on Ebay. I’ll come up with a list this weekend.
June 9, 2007 at 9:10 pm
Hey – glad to see your new layout. It looks great.
Looking at your budget, can you cancel the DirectTV, or at least downgrade it? That’d be an easy $117 to contribute towards your credit card debt.
Also, kudos for getting a $590 rent-controlled apartment! You must’ve been grandma’s favorite.
If you aren’t currently contributing to your 401k up to the employer match, I’d start now. It can lower your taxes and take some of the temptation away (since that 401k money will be inaccessible).
June 11, 2007 at 5:41 am
I have to say your rent is phenomenal for the city in which you live. It is so good that you are under the typical 25-35% of your income threshold. I’m at odds with the DirecTV bill, but I just have the basic lineup on a DVR and regular receiver for half that. You must like movies =) but who doesn’t. Increasing your 401k contributions may dent your income a little bit but compound interest on money saved at 25 will be worth the pinch. It would be great if you can get out of your credit card debt by the end of the year, which is a good goal to have. Your next battle would be to apply that money to your student loans and get those out of your life. Becoming and staying debt free early on is the best stress relief for the future.
June 12, 2007 at 8:28 am
I totally second what wellheeled says. Cancel the direct tv. If you have a computer or a dvd player, you don’t need cable. Sporting events, go to a local bar and watch with other people or go to a friends’ house.
Good for you for taking back the sunglasses! It’s a great first step. And also cleaning out your closet! Finding saleable assets that you won’t even miss will help pay down your debt. De-cluttering your apartment will also make you feel better and free-er.
I got to your blog from mydebtblog.com and I look forward to reading more. I have about 10500 worth of debt on my visa that I am desperately trying to pay off. I am determined, but I don’t have a blog.
Best of luck to you!