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Here is my recap for October 2010. I am still doing my counseling sessions and I am happy to say that I am making a lot of progress. We are no longer exploring what happened in the past but we're moving on to what I want in the future and that includes dealing with my finances. We branched into that discussion last week and I am going to finally come up with a plan to get financially free. Fun and Exciting right?!?!
Here is the thing...what you're going to see in October, November and December is my savings account drop. Trust me...that is not the end of Chitown's world. Next year is going to be GREAT!!! I am so excited. Just read and watch. You will see improvement in every area of my life. =)
This chart is a lot to take in but it basically how I've done this year. This is the first time I really tracked in so much detail and I think it's helpful to get a glimpse of the 2010 picture. Basically, there hasn't been a lot of change in my net worth but my debt has gone down each month.
Here is the budget breakdown for October along with more detail below.
- Part-time Job: It's gone. No more part-time job going forward.
- Transportation: This will decreased going forward since I am no longer driving downtown for work.
- Food & Dining/ Grocery: I did really good in this category for October. Only $15 over budget for both categories. (thumbs up)
- Personal Care: I ordered more mixed chicks for my hair and bought a $40 Groupon for an hour long massage.
- Clothing and Shopping: I purchased a few purses from Coach during the Labor Day sale, got some clothes dry cleaned instead of shopping for more clothes and purchased a phone charger and car accessory my iPhone.
- Health & Medical: I got reimbursed $97 for my dental which will show up next month.
My credit scores are still improving as I continue to pay down debt. This new scoring system blows my mind when I think that an 802 credit score can actually be considered B credit when it used to be considered A credit. I am still really pleased that I have very high credit scores and that I am maintaining my commitment to pay everyone on time.
4 comments:
Welcome back! you have been missed. I high recommend "the Total Money Makeover" it is very quick and easy read. It is a high level overview of a 7 step process written at an 8th grade ready level, so it is very easy.
I am excited for this new outlook on life and money. It will make for great post.
I'm excited that you sound so positive and can't wait to hear about your plans.
You are a great inspiration. I too am a law school grad who is not working as a lawyer but attacking a little over $106k of debt between student loans and credit cards which doesn't include the mortgage. I even have natural hair though my product is kinky curly instead of mixed chicks ;). So keep up the good work especially the work you are doing on you.
WCB - It looks like your budget is hemorrhaging in several categories by hundreds of dollars, causing you to tap savings and ultimately undermine your self-stated goals of living debt free. How is a Coach purse helping you get to where you want to be? With the student loans, are you merely paying the minimum payment? I’m not naïve, an $1100 payment is nothing to sneeze at - but I fear you will never hit the principal at this rate. Have you made a concerted effort to fine cheaper places to dine? Do you consistently take your lunch? Do you stagger your indulgences over multiple pay periods? Are you still digging yourself into a hole by using your credit cards? Assuming you haven’t already, maybe consider reading some of the personal finance classics, like Total Money Makeover, Millionaire Next Door, The Richest Man in Babylon, etc. I empathize with your position, as I have amassed six figures worth of debt from graduate school. However, I had to change how I think about money. Credit scores are not an accurate barometer of fiscal health, they only capture your ability to pay your bills on time - for me this is a revolutionary proposition that I first heard on the Dave Ramsey podcast. Credit scores do not capture your debt-to-income ration, savings rate, etc. Good luck with your dreams!
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