I wasn’t sure if I wanted to discuss finance on this blog but it has consumed my mind lately, so what the hell. My office just went through a pretty significant layoff, so for a while I was uncertain if I would still have a job. I quickly realized my savings wouldn’t last me very long.
Fortunately, I still have a job (and a paycheck!) but this recent scare has me rethinking how I spend money. I have a couple months’ savings accrued – but it’s advised to have a minimum of three. Some experts even advise on having up to 8 months. Gulp. How can you ever save that much?! I don’t live paycheck to paycheck, but I still feel like I’m a long ways from that goal.
My debt is pretty minimal (compared to most). I was fortunate and got through college debt free. I did work part-time to pay living expenses, and my tuition was covered. I have 17 car payments left to make and then it’s completely mine. My credit card debt is very small but, after calculating, it would take me 4 years to pay it off if I only make the minimum payments – and don’t accrue anymore. Say what?!
I should also note that I contribute to my 401k, so I take advantage of my employer’s matching offer.
My biggest focus point is to increase my credit card payments so I have that off my plate. I hate paying interest on debt I collected on odds and ends over the past few years.
Do you have tips for budgeting and paying down debt? I’d love to hear it! I know most of us are all in the same boat and it can be overwhelming and confusing.
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| via Heather Dyan |
6 comments:
I think making a budget works. I keep a spread sheet of all bills every month. You can also go through your bank statement and set budgets for like food, gas, and fun. :)
I hate money! haha. I'm not in debt, but I feel like I'll never get too far ahead of ever have a good savings...
My biggest thing for getting out of debt was to pay more than the minimum payment, to avoid all that interest!
I have my employer direct deposit a certain dollar amount in my savings account each month and the remainder in my checking. I have basically just given myself a pay-cut, so I have to adjust my spending, but all that other money goes into savings. It's tough to overspend when the money isn't there!
i'm glad to hear you still have a job, something we definitely ought to be thankful for these days! i would say look at the things you buy on a regular basis and see what you can cut down on coupon cutting always helps me to save me.
Great tips, thank you!
I think I'll start writing down everything I purchase - so I can see where I spend and where to make cuts.
Also thought trying a "cash diet" might be a good thing to experiment with.
Otherwise, I'll continue to accelerate payments when I can.
Ack. So glad I don't work in finance.
Well, you know I've bee concentrating on debt this year, almost obsessively. For me, paying everything in cash saves a lot of money (if you can handle it) because handing over cash actually hurts the spender psychologically whereas we get a little ping of psychological thrill from swiping a magic card (even if it's debit). Here are our best starting place tips: http://143637.com/archives/209
Kill those credit cards! You won't regret it.
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