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I am giving myself one year to be clear of debt and have saved enough… - Speak Friend and Enter
Grammar and Lord of the Rings
suffocated
suffocated
I am giving myself one year to be clear of debt and have saved enough money to be able to buy a car to replace my 14 year old deathbed clunker. Honestly, I have no clue how much I would need. But by the end of next summer I want to be able to do it. I have about $300 a month in recurring expenses, not counting credit cards, and that covers my rent, food, and cell phone. That's 1/4 of my present monthly income, so if I'm unable to drop $400-500 a month on paying off my credit cards, something is severely wrong. i.e. my next paycheck = no more MasterCard. And so forth. Since I plan on living in the same place for at least the next year, I am fairly certain that my expenses won't inrease - the possible exceptions are taking on car insurance and of course, having more required of me for food, because I really don't think my monthly contribution is going to cover it. But we'll see. Here comes the scary numbers.

$500 Visa
$500 MC
$2500 Amex
= $3500

$3500 / $500 per month = 7 months = about April of next year, no more debt.

$1200 income per month - $300 expenses - $500 debt payments = approx $400 in the bank. This obviously will not be true, since there will be unforseen expenses as well (tickets to shows, maybe a rental here and there) but for the most part a good $350 a month should be getting put away.

$350/mon x 7 months = $2450 by April, which leaves 4 months before the end of summer, and no debt.

So, say $700 each month goes into the bank after that (allowing for insurance, etc)

$700/mon x 4 months = $2800 + $2450 = $5250 by the end of August 2003. Wow. Five grand. Surely that would get me started on a car. Obviously I would not be saving as much after that, with a payment. I imagine around that time me and Eddie will be moving out of that place, not necessarily together, but this isn't a long term thing.
1 pity screw or Do me
Comments
hauntedlavender From: hauntedlavender Date: September 12th, 2002 09:14 pm (UTC) (Link)
$300 a month in expenses? damn, i wish i could get off that cheap. mine ends up at uhm $720/month if i'm lucky.
1 pity screw or Do me