Budgeting for the Next Few Months…

I came up with a budget for the next few months. My student loans from law school will enter repayment at different stages.

• 1/2008 – $150 per month
• 4/2008 – $870 per month
• 6/2008 – $330 per month

Total: $1,350 per month (interest only)

I came to five realizations:

• I have to pay off my credit card balance – the monthly payment is too high
• I have to change my withholdings – tax return is too high and I need more monthly income
• I have to get a part-time job if I don’t land a law position within the next 6 months.
• I may also have to suspend my 401k contributions to pay the minimum on my student loans.
• I may be able to reduce expenses a little further to keep my 401k contributions

While I fully believe that I will be working at a firm very soon, I also believe in being prepared as much as possible for life’s curve balls. When looking at the bright side of things, what I am most happy about is that I am in a position to not only pay off my credit card debt but I will also be able to pay the interest on my student loans so that my net worth will continue to improve a little. Lastly, depending on my possible yearly salary increase, the part-time job and/or income earned from real estate closings, I may be able to keep my 401k contributions which would make me very happy. Then my net worth will really improve.

On a side note, based on my income, I may also be able to forbear my federal student loan payments a little longer.