Budgets are a Girl's Best Friend

Loans likely won’t disappear on their own. 

A girl could dream, though. 

So until I win the lottery I pay, pay, and pay those suckers. 

Here is a breakdown of what my month to month looks like for the last year and a half.

Every month I make roughly $2200.

You can see that the majority of my income goes to loans.

At 28, living with your parents is not cool, but it sure is helping me become debt free more quickly. I am blessed with parents who let me live rent free. I know that this is not a possibility for all. I highly recommend living with roommates and paying the least amount of rent as possible. If you own a place or roommates are not a possibility, I recommend cutting costs in other areas. (cutting cable, changing cell phone plans, strict grocery budgets, etc.) 

Car

I have a newer vehicle. I bought it in 2013 brand new and I signed up for payments for 75 months. In retrospect, I know that was not my best option, but at this point in the game, I am keeping it.  I plan on finishing out the payments, and holding onto the car for as long as I can. 

What I wish I would have done, bought a cheaper vehicle, kept my payments under $200, or no payments at all would be even more ideal with an older used car. 

Grocery

I buy my groceries at ALDI. If you don’t know this store, get to know it. I buy breakfast and lunch foods and only what I need. Another perk of living at home, food costs are also low. Again, I know this is not everyone’s reality. I will post more on frugal shopping, ALDI included, in the near the future. 

Credit Card

I really do not have credit card debt. I learned early on in my college career that credit cards are a slippery slope. I do, however, have a Chase Freedom rewards credit card. I charge my bills and some necessities on there (all in the budget) so I can get cash back rewards. Only consider this if you have constraint and you know you won’t charge excessively and unnecessarily. I allocate money in the budget in case of unknown purchases, or rollover balances. Credit card interest rates are typically higher than other interest rates so PLEASE do not abuse credit cards. 

Cell Phone

I have been grandfathered into the holy grail of cell phone packages. I get unlimited data and minutes for $70 bucks. I needed a new phone, so I also pay the $20 lease fee. Not ideal, but it's what I'm working with. If you haven't yet checked, you should google cell phone discounts. There are so many! I was able to get a student rate for having a college email account. You can find discounts for various jobs and unions as well. 

Personal 

Personal care encompasses a lot. It is for my hair, eyebrows, doctor visit co-pays, personal care and hygiene products, clothes (many future posts on shopping) and other personal necessities. This can fluctuate from month to month, but I always budget for it. Budgets are key. If there is excess at the end of the month, GREAT! If not, when the money is gone, it’s gone. 

Entertainment

Notice, my entertainment budget is low. Sucks. But, it’s the price I pay to secure my future. (More to come on frugal entertainment). 

This is another area where if there is excess, great and I carry it over to the next month, or when it’s gone, it’s gone. Also, this is an area where many people can cut costs drastically. 

Gym

I do not have a gym membership. I sometimes take advantage of going for free with family members or friends….okay, I do not actually work out all that much. But, if I did I could budget for $10 a month. $10 is a price many gyms offer for their basic package. I also can work out at home, or in the summer months, I like to run outdoors. There are options. 

Misc.

Miscellaneous is used for possible gifts, coffee (I have an addiction), cheap quick restaurant eats, and anything else. 

Do I ever blow my budget? I would be a liar to say no. But I try really hard to stick to it, and it helps me to stay on track. 

I have money saved in case of an emergency, or if on a rare occasion I go over my budget in a month. I try to take any money that is left each month (which you can tell is often little) to put aside for special occasions, dinners, or anything else that tickles my fancy. 

Anyone and everyone should have some sort of budget. Some have more wiggle room than others. You can download some ready to go budget templates here: Google Budget Templates

How do I plan on paying so much in a few months towards my loan principle? 

Well, any extra money I get goes to my loans. For example, my entire tax return will be applied to my loans. Any extra side hustle money (oh, we will talk side hustles!), and any gift money, etc. 

Also, being a teacher allows me to have summers off. I take advantage of that time off to work a few months for extra income. All of that money gets applied to my loans. Would I rather soak up the sun and hang by the pool, well duh! But, for the next few years, I plan to make that money honey and reach my goal of becoming debt free.