Friday, May 23, 2008
So much debt, so little time....
I'm following Dave Ramsey's Total Money Makeover Plan. www.daveramsey.com
I read his book about a year ago and it has been a revelation.
MAY 2007 to MAY 2008:
€13,000 paid off in credit card and other debt.
END MAY 2008:
I've saved €1,000 in my baby emergency fund.
I have €1,875 saved in my big emergency fund (BEF) and I am thinking about renting out a bedroom in my house - an extra €100 per week to put into my BEF.
I have only one little loan which will be paid in November 2009.
**** ((( UPDATE - 10JULY2008 ))) *****
I've put my name on nearby college accommodation lists. Hopefully, two students will take me up on this - an extra €200 per week into my BEF.
**** ((( UPDATE - 07SEPT2008 ))) *****
I've found a lodger, lovely girl. That €450 per month extra to be saved straight into my BEF.
**** ((( UPDATE - 15OCT2008 ))) *****
Since last week, my hours at work have been cut by 20% (so I'm losing €510 per month from my take-home pay, sob!!). My retirement contributions have also been cut by 20%.
My Debt Free Plan needs some serious re-adjustment.... I urgently need to get a second job! I've got my CV (resume) out there in the big bad world, looking for a part-time job at weekends.
There have been lots of adjustments to the weekly budget, spending has been whittled down to bare necessities only and the occasional splurge at weekends.
**** ((( UPDATE - 06NOV2008 ))) *****
Still no weekend job, there's nothing available in my line of work, so I'll have to do some lateral thinking. I've applied for all kinds of weird & wonderful jobs, but no joy so far. In the meantime, I readjusted my budget & savings plan, there has been some serious belt-tightening!! I've spoken with my bank manager and she looked at my bank accounts and put me on the best rates available.
I'm now back on track to have my 6 months expenses (€12,000) saved by the end of 2009.
Today, I've just passed the half-way mark, so I'm getting there. It's pretty slow though...
I've also got a holiday fund started, and a car/household expenses fund started.
Hopefully the wage-cut will be temporary, but in these hart-hit times, it's not looking hopeful, is it???
**** ((( UPDATE - 14JAN2009 ))) *****
- The Irish Government has, since 1st January 2009, added an "employment levy" of €30 per month to my tax bill. That €30, together with the 20% cut in my working hours, adds up to a total of €540 per month gone from my pocket, sigh. It's depressing but I try not to think about it. I'm lucky to have a job I suppose....
- I've got a few small jobs at the weekends, bringing in about €200 per month.
Every little helps!
- I've got €8,000 saved towards my 6-months expenses fund.
I'm on track to having the full €12,000 saved by the end of this year.
- Then I need to start saving to replace my car. At end of 2010, I'll have €2,000 saved in that account. It's not much, but I have to concentrate on replacing my roof first.
- My roofer says the temporary job he did in November 2008 will only last a year or two, so I've got to focus on getting this money together asap in 2010.
Jan 09 - I've just opened a "new roof fund" account in the post office, saving €20 per week. It'll take forever at that rate, hopefully I'll have €8,000 saved by the end of 2010.
SO, IF I KEEP MY HEAD ABOVE WATER...
BY DECEMBER 2009:
I will have saved my Big Emergency Fund of €12,000 AND I WILL BE DEBT FREE EXCEPT FOR MY MORTGAGE. However, my roof needs replacing and my car will be 9 years old!
BY DECEMBER 2010:
I will have €8,000 saved in my "new roof fund".
I will have €4,600 saved towards a replacement car.
No doubt at that stage, there will be something else to save for...but that's the current plan anyway!