My estimate of how/when I'll pay off my student loan. (Mine obv has specifics)
I spent a few hours this past weekend working out a new budget now that my future roommate and I have come to an agreement on the rent I’ll be paying her (it may have involved bartering and a virtual hand shake). While I was at it, I decided to map out my plan to save more and pay off my last remaining debt, my student loan.
I’ve been reading Dave Ramsey’s Total Money Makeover, and it definitely puts me in the mood to pinch pennies (which I kinda already was in). Sure, I already know most of it (I am a financial counselor, though that’s not my primary responsibility), but seeing it again–and in the layman’s terms that I think in–has been good for me.
The hardest part of my budget for me is how much I budget for food/groceries. As a single gal, it’s way too easy to opt to grab something at a drive-thru, especially when I’m on the road anyway after a long day. It’s easy to justify when it’s just a few bucks more and is less work. But doing this time and time again…well, that’s not been too great. Certainly not for my budget OR my body (a topic I’ll be getting to soon).
I’m such a visual and numbers person, that I decided to make a spreadsheet of it, including a crude calculation of both interest accrued and interest paid. Even made a graph of it for cool visual appeal.
While I don’t pretend to know the future, it helps me to have a plan. It’s easier for me to see how small decisions I make now (excessively eating out or indiscriminately shopping for clothes) impact my long-term goals. I even included a list of complications (both good and bad) that I can’t predict at this time, but could affect my plan. You’ll be happy to know, I think, that I included (and I quote):
Wedding, haha
and
Marriage =)
That’s how you know it was made by a girl…how many men put smiley faces on their spreadsheets?
I loved the total money makeover! We’ve taken different parts of it and adjusted it to our lifestyle and needs.
Good for you! I love the visual aide idea ;-)
That’s such a great idea, I need to get into the penny pinching mindset myself.
We started reading that book and stopped. We need to pick it up again.
We love Dave Ramsey’s materials. We have the Financial Peace Seminar cd’s and have been working to get our emergency fund built up…we did have it built up and was able to pay off a credit card with it.
One of my favorite lines I’d use when I’d get a solicitious phone call was “I’m sorry, Dave Ramsey won’t let me”!
Good for you for getting your $$ in order and making a budget! I desperately need to do this.
Rebecca: You definitely should!
I think what you are doing is great! It’s a definite discipline!
I need to read that book! I’d love to see you write a review on it!
Good for you for getting things in order! If you don’t use it yet, I’d highly recommend a finance software like Quicken…so eye-opening to see exactly where your money is going. Plus~~pretty graphs! :)
WhatACard: I don’t. That’s an idea that I’ll think about…though I don’t know if I want to take the time to enter everything in!
Girrrrrl,
If I had cooked more and eaten out less when I was your age, I’d be a millionaire by now. I know that when you are in your 20′s, and a Free Bird (no man, no kids), it’s a time to live it up. But then again, it’s healthier for your wallet and waistline to cook at home.
Cheers,
Chris: Exactly. My past behavior saddens me, but I’m going to make the change NOW.
Cooking at home (and stocking up on healthy and/or cost-conscious snack foods) is definitely a wise choice. And when you make those financial plans, be sure to start investing for retirement! It seems a long way off…but I have friends who retired 5-10 years younger than I will because they saved early and let their funds grow in value over the years. Those are some charts that will astound you!
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