Friday, September 24, 2010

Budgetary Update 9/24

Arvind Balaraman
Friday is going to be Budget Update day on the blog. Maybe not every Friday, because that would get boring, but Fridays will be the day we check in.

GOOD news:
- Diesel (aka my husband) looked over my calculation and discovered the reason for our STAGGERING overspending wasn't just that we're spending like it is going out of style, but because I had miscalculated our annual income. I had calculated based on being paid 2x a month, rather than based on 26 paydays a year. Who knew that 2 extra paychecks could make such a HUGE difference. It also means that, generally speaking, we are NOT swiftly driving ourselves to the poor house. In fact, we're (marginally) in the black  every month. That being said, we're still going on a money diet!

BAD news:
- Diesel steadfastly refuses to use our savings to pay off the truck. We went several rounds on this one. The problem with being a Taurus married to a Taurus (with a Taurus child, no less) is that you are equally stubborn. There was no making him budge. As much as I tried to point out that we could replenish our savings rather quickly and the additional cost based on APR, etc., the man was immoveable. So I acquiesed.

GOOD news:
- Our new budget will allow us to pay off said truck in less than a year. I'm putting a hopeful 9 months on it, then the truck is OURS! This is a compromise, because Diesel gets to keep the security of our little emergency fund and I get to see us move one step closer to being debt free.

BAD news:
-After we pay off the truck, we still have to pay off my student loans. Anyone want to purchase a kidney from me? Actually after the truck is paid off, we should be able to "snowball" the former truck payment money into my student loans.

GOOD news:
-We are almost to the end of the month and have stayed below our new budget of $90/month for dining out. This $90 is WELL below our average dining out spending. That was $270... YIKES!!! (Hey, look at that, $180 to put towards our debt!).

So that is three GOOD newses vs. two  BAD newses. I'd say that is a pretty good start. Next I tackle my Target addiction and am going to try to learn to coupon. Any suggestions on how to handle my Target problem? Do you think Dr. Drew has a Sober House for Target addicts???

4 comments:

  1. We're doing the Dave Ramsey program too. My Target addiction was cured by 1) Sticking to the envelope system 2) cutting up our debit cards and using only cash and 3) asking myself 3 times if I really needed to go to Target and if I did, I went with a list I stuck to.

    Good luck! It's doable. An adjustment for sure, but doable.

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  2. I'm not super Dave Ramsey, but I LOVE the cash/envelope system-- that is what got me out of MAJOR money problems after grad school, but the spousal unit isn't having it!
    I like the suggestion of asking yourself 3 times if you need to go to Target. Thanks!

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  3. At Target you can use a store coupon and a manufacter coupon on the same item. I try to wait for the item to be on sale too.

    Too bad on the truck, but glad you figured out your accounting error.

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  4. @Tina- that still doesn't help my target addiction

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