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Home > $20,000 in debt, not including my car loan

$20,000 in debt, not including my car loan

February 7th, 2008 at 05:16 pm

My first goal is to be debt free.

My second goal is to have a 6 month emergency fund.

My third goal is to put 25% of my income towards my retirement.

I look at my car loan the same as I view rent or my mortgage payment. I know nobody else does but that's how I see it.

I've got a pretty extensive home made excel spreadsheet budget I've been developing so I have a solid handle on where my money goes. I just have to get control of my spending habits and live a more frugal life. My girlfriend makes less then me so I'm trying to fit my lifestyle into her budget constraints. So far it's not working. I like margaritas and too much. ;-)

Even though I've been tracking my spending in this budget I've never actually met my budget goals. This is the first month I've made a serious effort. I've finally ditched my credit cards and don't carry them around for "emergency" purposes anymore. All the money in my accounts has been allocated and/or sent where it needs to go (bills, extra credit card payments, etc) so I just don't have any extra cash left to spend. Kinda dangerous I think. I mean, something might happen and I might need cash quick but I really want to meet my budget goals for once and I think this is required for me to do this. so far so good. I'm 7 days into the month and I'm in line with my spending goals.

Ok, time to go earn more money for Chase and American Express!

Posted in Uncategorized | 4 Comments »

4 Responses to “$20,000 in debt, not including my car loan”

  1. merch Says:
    February 7th, 2008 at 05:51 pm 1202406685
    1202406685

    A lot of people use an envelope system. For your cash items (grocery food, eating out, margarita), you might want an envelope for each one. When the money is gone, it’s gone. As for emergencies, you might want a budget line item for auto maintenance, home maintenance, birthday gifts, etc. This will help you save up for the items without busting your budget. Also, you need time to change your mindset from a consumer to a saver.

    Good luck!!!

  2. Ryan Says:
    February 7th, 2008 at 06:52 pm 1202410346
    1202410346

    Oh, yes, the envelopes. I have used the envelope system in the past and it helped. I put 3 days of spending (both wants and needs) in each envelope. I like the idea of having a separate envelope for each major catagory. I'll try that.

    I do also have line items for each of the other expenses. My problem, which you nailed, is my mindset. I just moved and used that to justify a bunch of purchases so now I'm struggling to real myself back in. I think, if I meet my budget goals this month it will be a huge financial and mental victory. I'm also setting up and auto transfer to savings and 401K so I don't even see that.

    Thanks for your suggestions!

  3. JanH Says:
    February 7th, 2008 at 09:43 pm 1202420595
    1202420595

    Welcome! Yep, that happens to me. I start out by spending on some necessary things and it goes downhill from there. But, after being around here for awhile, your mindset does start to change. I now spend WAY less than I used to and I think things through. Good luck! Looking forward to reading more.

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    January 4th, 2009 at 05:23 pm 1231089814
    1231089814

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