KE Debt free Paycheck #1

Hi everyone.
I thought of another project I wanted to work on this (school) year,
and then I realized I could have a much better time with it
if I gave it a snazzy name.

So I came up with this:
KE debt free!

By the name of the project, you can tell what it is, yeah?
I want to be OUT of credit card debt as soon as possible.

I know how I got myself in there.

First there was the catalytic converter on the car three years ago
costing 4,000 dollars and slowly building up interest.

Second, there was the time I was in Waldorf School,
working, but not making enough really to keep up with my bills.

Third, there’s all the little things that I charge on my card,
mostly in the summer,
and I think, “I’ll pay it back,”
and I never do.

I’ve been great about budgeting for the last two years but I want to make it something more.
I want to declare it.
I want to share with you how much I’m paying down each month on my debt.
I want to have to publish it and be accountable.
I want to have a record of my progress.

I’m going to start today with my budget, since I got my first pay check.

I already know I have some extra money from saving on rent
(thanks handsome boyfriend for moving in!)
and I plan to try to get a loan through my local credit union
to help pay off some high interest credit cards.

Consider this my putting it out to the universe.

Dear Universe,

I want to get out of debt.
I know I can do it.
Any help you want to send my way, great 🙂
I’ll be ready and open for it.
In the meantime I’m going to work hard and do all I can!

Love, KE

Ok, now that the letter to the universe is done,
it’s official 🙂

THE BUDGET (totally warrants capital letters!)
The skinny: I get, after taxes, 1,334 dollars every two weeks.

With this money, I’m saving, spending, and paying down debt.

I’m saving for:
Summer. I don’t work and the money goes to cover my expenses.
Graduation gifts. Two kids I’ve known their whole lives are graduating from high school in 2015.
Batizado: Capoeira graduation/week of special festivities in May 2015
Conference: Savings for LA15SCBWI
Emergency: trying to build up to 1,000 for emergencies
Books: Starting a bookmergency fund for times when I just HAVE to buy a book!
Christmas gifts!

I’m spending on:
Rent. I share a large room with Danny and pay half of the price.
Internet and Electricity: Shared between 4 people.
Food: I pay for all my own lunches and breakfasts during the school week, and Danny and I split the cost of dinners/meals we eat together.
Spending money: Free to spend on whatever
Insurance: Car and renters
Capoeira: a monthly payment to take unlimited classes
Cell phone: just necessary!

Note: I do NOT spend money on gas. Since I drive a lot for my work, I get paid mileage money, which covers my gas and there’s extra money for car upkeep. I usually take that extra and pay half of it towards a credit card, and the other half into emergency savings for car emergencies.

I’m paying down debt from:
Lots of credit cards!
I’m giving them nicknames instead of their real names thanks to a heads up from a friend 🙂
I chose flowers, because, why not? May as well make it fun!
Black Dahlia ($4,550.42)
Red Rose ($3,104.60)
Gladiola ($3,121.30)
Loan #1 ($1,000)
Sunflower (2,158.56)
Total: 13,934.88

Budget for October 15th, 2014:

Saving
$350 summer
$12.50 graduation gifts
12.50 batizado
$50 emergency
$62.50 conference
25.00 Bookmergency
35.00 Christmas
Total: 547.50 (41%)

Bonus savings:
This came from working extra before my pay period began:
$154.54 emergency savings

 

Spending 
$235 rent
$30 utilities
$100 food
$60 spending money
$55 insurance
$45 capo
$35 cell phone
Total: $565 (42%)

Paying off credit cards
$93 Black Dahlia (minimum)
$64.50 Red Rose (22 dollars over minimum)
$69 Gladiola (minimum)
Total: 226.50 (17%)

Bonus payments:
This money is from some book stuff, some summer savings I had, and a bonus few days of work I worked before my pay period.
$244.69 Black Dahlia (paying off the writer’s desk I bought)
$1,455.31 Sunflower (paying this card off first!)

Total paid into savings this pay period: 702.04
Total paid off of credit cards this pay period: 1,926.50 (13.8% of my debt!)

I wish I could make these bonus payments all the time,
but I’m just happy to get this jump on it.

Like I said,
I’ve been budgeting for two years and having success,
but just having it out here makes me more serious about it.

Do you have any money saving tips?
Any books you’ve read that helped you?
I’d love to hear about it 🙂

I’m hoping to do this with every paycheck until June,
and see BIG results 🙂
I’m planning on other ways to make some more money too,
which I know will help get that debt paid off faster 🙂

Thanks for reading along!
KE

 

P.S.
I am also going to keep track of how my retirement and emergency savings funds are doing. I try to keep my emergency savings around 1,000 dollars, and it has saved me many times from having to charge things. I have not contributed to my retirement fund in YEARS, but it’s continuing to grow. Once I get out of debt the first thing I’ll do is put more money in it 🙂