The Budget - Overview

OK, I am looking at being in the hole $165/mth...every month...that's $1980 every year.

Normally, this would be bad. Scrath that, it is bad...but I've overestimated every cost...the difference is less than $165/mth...but I have currently been withdrawing money from my investment accounts to cover bills. I have also been overpaying for my debt payments...once I am able to ELIMINATE BAD DEBT, I will be looking at a positive cashflow.

Now, Remember, I'm also Saving $996/mth (Emigrant Direct, ING, 401K)...so I'm actually cash flow positive for the amount of ($-165)+($996) = $831/mth. I have actually been tapping my savings some when I need a little extra money to pay the bills (bad), and flushing my savings accounts every couple of months to pay down debt (right intention...wrong concept) which partially explains why my savings accounts are too low...

So with the full intention of eliminating debt, I should be able to free up those payments within 6 months to a year...which frees up...

Credit Cards:
Providian: $50
Quicken: $80
USAA: $100
Credit Card Total: $230

Personal Loans:
USAA: $140
Prosper: $32
Personal Loan Total: $172

Grand Total: $402/mth

The 'extra' $402/mth will be immediately applied towards my savings accounts/prosper loans/investment accounts.

My goal of eliminating debt, building an initial 6 months cash cushion, and becoming fully financially independent isn't going to be easy...AT ALL...but the good things aren't suspossed to be easy...they are meant to take effort, planning, and commitment...

I DO have time, I DO have the hunger, I DO have the commitment...and that's all you really need for success...

Until next time,
Thor