let’s get down to business

Here is a graphic of my current budget from my last post:

Now, in order for me to be able to throw about $500 at my student loan debt, I need to shift some things around. I crunched a bunch of numbers, and this is what the new budget looks like:

New budget allocations:

Necessary Expenses – 29% (from 40%)
Currently, I’m living in a 3 bedroom flat with 2 roommates in San Francisco. I’m paying about $900/month ($825 rent, plus electricity, water, utilities) for a master bedroom with my own bathroom. As I mentioned in my previous post, I will be moving in with my mom, auntie, and brother in about a month and instead will be splitting the mortgage. My own contribution will be $600 flat (this will include electricity, phone, water) – savings of $300/month.

However, my monthly Clipper Card (SF/Bay Area travel costs) will be increasing from $62/month to about $150/month. Still, I’m saving more than $200 in this category.

I’ve also moved my monthly loan payments from this category to the next category.

Student Loan (SL) Snowball – 19%
[For those who don’t know what a snowball in personal finance is (or an avalanche, for that matter), I’ll be a doing a post on it sometime in the near future. Keep a look out!]

I’ve decided to throw about $500/month at my loans. At this rate, I’d have my loans paid off by December 2015 – exactly 5 years from my graduation date.

Savings – 37% (from 30%)
I know, why did I increase my savings from 30% to 37%?

Well for starters, I’m starting to save for my own car and I want to buy this car by December of this year. So the savings for that aspect went up from $50/month to about $300/month.

Also, I’ll be starting to study for the CPA (Certified Public Accountant) exam in about a month or two. Registering for the exam and reviewing for it is not cheap ($100 initial registration, $743.20 total for all four parts of the test, and $3,245 for the review). I’ll be taking out an interest-free loan (the best kind!) for the review, but I need to start saving up for this whole process. Increased career savings from $0/month to $200/month.

Spending – 7% (from 20%)
I currently take out $100 cash every Monday and that is the only cash I’m allowed to use for lunches, nights out, groceries, and gas (when I get rides from people). I’m decreasing my weekly spending from $100/week to $40/week. *gasp* I know, I might cry, too! Initially I was going to go down to $20/week, but I think that just might be impossible. Well, we’ll see how this one goes! This means bringing lunches every day to work, less happy hours (drinks are expensive!), no more hookah (it had to be done), and no more careless spending (bye bye expensive makeup).

Tithing – 8% (from 10%)
I knew for sure that I was not going to eliminate tithing from my budget. Although I spend a lot of time doing ministry work (I’m very involved in my parish’s Young Adult Ministry), I still think that I can donate money to my home parish. I decreased my monthly contribution from 10% to 8% – not a big change.

So there’s the plan. June begins this Friday (already? goodness…) and so will this new budget. Can’t wait to get this ball rollin’!

Happy Memorial Day, everyone! Let’s not forget what the troops have done for us.



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