Nothing like a little bit of alliteration to start off a post. :)
Note the last 3 come from some pic I saw on the net, which you may think has nothing to do with a budget post, but in fact it kinda does.
I haven’t really done any meaningful work on my budget in quite a while. And this blog started as a Personal Finance blog. *shame*
So revisiting my budget was a bit of an eye-opener. I realised that I had made a few optimistic assumptions ( or what you would call “lies”) on a few key budgetary figures, but to balance that out, I also made a few rather pessimistic calculations. So I recalculated and reworked a few items, adjusted for interest rates, and BAM!
I got this.
See that massive dip 2 paychecks ago? That was cause I didn’t factor in interest and a few charges I had sneakily placed on a couple of the cards. So rather than being well and above clearing my debt by 50% by now as I had predicted, I’m still a tad below, currently having paid off 51.14% of my available debt.
At my current rate of payments, factoring a rough estimate of $3500 worth of interest that will be applied to my current debts, I will be done at the end of March 2013.
Now for the good news.
I started doing calculations of what life what will be like afterdebt (dear god! FREEEEEEEDDDDDDDDOOOMMMMMM!!!!!).
Even with an increase of my grocery budget and increasing the money I set aside for bills, I am still using only 45% of my salary on what us Personal Finance bloggers call “needs”. Well, technically 41% since I included in my “after-debt” budget $80 for “incidentals” and we all know what that means… damn straight. Hookers. I mean coffee! Coffee! :P
Still, that leaves me with $1,100 to play with.
If I keep up the budget I’ve drawn up after debt, which honestly is not at all restrictive (I have almost $400 to do with as I please! [and yes that includes the $80 for hookers. Damnit I mean coffee! Why do I keep doing that?] compared to the measly $110 I have to contend with now), AND if I maintain my current salary, AND if I don’t stupidly fall in love with a girl and waste all my money again AND nothing else terrible happens to me, then the following is a pretty reasonable scenario.
So the time line goes like this :
28 March 2013 (hopefully) – Out of Debt
18 July 2013 – Trading Account hits $1,500. Start online trading. Reduce contributions to 3 x brokerage fee.
15 August 2013 – Have 3 months worth of expenses saved in an Emergency Fund. Reduce contributions to 5% of salary.
26 September 2013 – Savings (not part of Emergency Fund) hit the $5,000 mark. Time to do research on purchasing a car.
19 December 2013 – Savings hit the $10,000 mark – purchase car (or motorbike)
2014 – open up a FHSA (First Home Savers Account) and restart Savings Account after car purchase.
2017 – Emergency Fund now holds 6 months worth of expenses.
2029 – FHSA account hits legislated cap for contributions With interest, FHSA account now holds in excess of $160,000.
And this combined with savings, superannuation and a slow and steady build up of investments, should provide me with enough money to live on for the rest of my life.
That is unless the universe wants to kick me in the balls and make the Zombie Apocalypse happen.
Which it will.
Then I’ll just settling for eating your brains.