Above is my final budget for any given month. I looked at all of my bills and based this off of due dates. There is an excess of funds, but this is how I plan to spend it...- $200 in debt snowball
- $60 in fun money (This will be my money for clothes and entertainment. I'm tired of not living life!)
- $28.03 - This or any other remaining amount will be used to help build my checking account cushion. I would like a cushion of $100. After that, it will go to savings.
I made sticky notes to remind me of the order that I need to take care of my debt. The only item not listed is the payday advance I had to get when my tire was messed up (which messed up other plans I had).
SO....how am I getting out of that mess???
First, I have to mention that I opened an account at a new payday loan place. I did this for two reasons:
- So I won't have to drive 30 minutes from my job and an hour from my house to pay a loan.
- The place that is closer to me (five minutes away!) had a special where new customers pay no interest on the first loan.
I figured that the no interest part is the best since it saves me $30 AND I don't have to worry about spending extra gas.
Now back to the original question...how am I getting out of this mess?
I am selling my cell phone. Yep, my HTC HD2 that I haven't even had a year. I really do not use many features on the phone and my previous cell phone is in great condition. I listed my phone on craigslist last week for $275 and will be meeting a buyer tomorrow that has offered $230.
I really did not want to sell for less than $250, but I've had no other serious inquiries. Now I can pay off my payday loan without rewriting AND complete number one on my priority list.
NEXT is the truck...
Since I'm selling my phone to pay off the payday loan, I can pay the late balance on my truck that much faster. This plan is sketched out on the second sticky note. By the time my next truck payment is due, I will have completely paid my late balance and can move on to catching up on my electric and phone bill. After that is the credit cards. YAY!
Decisions made...
As much as I really don't want to, I am going to HAVE to go on an envelope system. This Friday (payday), I WILL take out $40 for food, $60 for gas, and $20 to keep in my wallet for emergencies. I would take out the whole amounts for food and gas, but I'm scared that I will overspend. When I do this, I will no longer carry any credit OR debit cards with me. This is why having $20 on hand is more important, in case I have a flat or something.
I CAN AND I WILL GET OUT OF DEBT!
I CAN AND I WILL GET OUT OF DEBT!
I CAN AND I WILL GET OUT OF DEBT!
Posted January 24, 2011
