What I Want…

I am going to write here what I really want….My Dream List.

• Associate position in a mid to large size Chicago firm.
• Minimum base salary of $125,000.
• Budget that works within the 60/40 formula.
• Contribute a minimum of 10% to retirement savings.
• Zero credit card and student loan debt.
• Free of student loan debt by age 40 (currently 32).
• Minimum of one year of living expenses in an emergency fund.

2010 is my year...

Well, 2010 is my year to get it all together. I am making some good connections and I hope to land a law position within the next 12-24 months. My current job is stable.

• Current base salary is $72k.
• All CC debt is consolidated at 3% until 1/2011.
• All private student loans are in repayment.
• 1/2 of my federal loans are in repayment.
• The remaining 1/2 goes into repayment in June 2010.
• I have savings from my annual bonus.

Goals for 2010:

• Use only cash and debit cards.
• Live below my means and within my budget.
• No more debt and no credit card use.
• Continue networking to land law position.
• Work to find avenues to increase my income.
• Use savings and not credit for emergencies.

February 2009 versus February 2010…

I just looked back at my sole post for February 2009 when I reported that I was credit card free. I am just so disappointed. I refinanced my home for no good reason only to run up my credit card debt again. Ugh!!! I will make this right.

January 2010 Monthly Report…

January has come to a close. My annual bonus was received and savings allocated. With the bonus came a large $10k improvement in my net worth. I have $9k allocated into savings with the following breakdown: $2K - Emergency Fund and $7K - Short-term Savings. My spending is a lot better and I am looking forward to making progress in 2010.

January 2010 Update…

I am only a couple days away from receiving my annual bonus and this is the first year that I will be putting it into savings instead of paying down debt. I no longer carry any credit cards in my wallet but I have adequate funds in my Checking/Operating Account for any Irregular Expenses.

From my bonus and a little extra money that I put aside, I am going to deposit $2,000 into a separate emergency fund and $7,000 into my HSBC account for Short-Term Savings. I have a $10,000 goal for Short-Term Savings so I will be 70% to goal. I plan to deposit any tax return that I receive into this account as well so I should be close to 100% by summer.

All of my $23,000 in credit card debt is consolidated on one card with an average interest rate of 3% through 1/2011. I plan to reduce this balance by $500/month through 2010. That is the best that I can do with my current budget.

All of my student loans will be in repayment by June 2010. Right now, over 75% are in repayment with a monthly payment of $850.

Status Update...2010

This is a big month and a big year for me.

I consolidated all of my little credit card debts onto one card at 3% until 1/2011. At month end, I will receive my annual bonus which will net after taxes approximately $6,400. I have a small emergency cushion right now a little in excess of $2,000 so I removed all of my credit cards from my wallet with the goal of no more debt. 66% of my student loans are in repayment. The remaining 44% in federal loans will enter repayment in June 2010. That’s it for now. Stay tuned...

Federal Student Loans...

I downloaded the federal forbearance form yesterday to find out that my lender only allows you to forbear for 3 years. Guess what??? I am already in year 3. So…I haven’t figured out my exact plan of action. About ½ will go into repayment in January 2009 and the remaining ½ will go into repayment in June 2009. Total monthly student loan payments will be approximately $1,300 per month.

$1,300 is a small fortune for a single woman making $72k per year with a monthly mortgage payment that is also approximately $1,300.

Whatever my budget will be…it will be tight. Very, very tight.

Returns & Debt Payments...

I returned $422 worth of new merchandise to stores last night. The amounts were credited to my credit cards reducing the overall balance.

I got paid today. I scheduled the following payments for November:

$233 reduced CC#1 by $200
$530 reduced CC#2 by $530 (no interest for 6 months)
$300 approx. in returns reduced CC#3 by $300
$158 to pay off CC#4
$641 reduced SL Debt by $250

Overall Debt Reduction (thus far) for November: $1,560 (including returns)