Thursday, August 09, 2007

July 2007 Monthly Report…

I have to say that I did not keep a close eye on my finances in July or my ending balances due to studying for the bar, taking the bar and immediately traveling the very next day to Mexico for an entire week to attend my sister’s wedding.

Therefore, I came up with an adjusted month end balance sheet that figures in full repayment of my current credit card balance which was generated during the month of July (except the $750 for my car repairs) and $600 in unexpected residual medical bills that I received in July from a surgery that I had in 2005. I decided to pay off my credit card with savings versus carrying a balance forward. I also removed my credit card from my wallet. This is finally the end of that nonsense once and for all. No more excuses.

So, the balance sheet below is more reflective of my financial condition today rather than at month end. I will report at the end of this month on how I did for the rest of August.

Basically, my net worth declined ever so slightly but certainly in the right direction. I finally received the tuition reimbursement from my employer so a portion went to savings and the remainder went towards paying off my credit card balance and the medical bills previously mentioned.

I am finally on my way.

Monday, August 06, 2007

Getting Back to Business…

I just got back from Mexico on Thursday and now I am back to work after a month off. The bar exam is finally over and my sister also had a beautiful wedding in Cancun.

Not so good news for my finances…

I am getting hit with $600 in residual medical bills from a surgery I had 2 years ago, my car needed repairs on Friday to the tune of $750 and my hotel roommate for the bar exam decided not to stay with me and I got stuck with the entire $400 hotel bill.

Needless to say, I have a credit card bill hovering around $3,000 which includes my car repairs, hotel stay/parking expenses for the bar exam, and other travel expenses. But, it does not include the $600 in medical bills which I still need to pay. So, the figure is more like $4,000.

I have to decide whether to take the money out of my current savings balance of $15,000 thereby reducing it to $11,000 or to transfer the balance to a 0% credit card and try to pay it off over the next 5 months before my student loans kick in. I don’t really want to take on any more credit card debt but at the same time, the $15,000 that I have in savings is my emergency fund and 3 months of living expenses (including $1,500/month student loan payments).

I am leaning towards a cash only system and a balance transfer. There are no more major expenses on the horizon for me and with passing the bar exam, I should be able to land a better paying position very soon. I better pass that darn test or I am in trouble. =)