Back on Budget

[ttpadilla]

When I arrived in California and started hanging with the old group of friends, I started smoking again. Yesterday, I quit (again). It's not been healthy for my budget, and my body is feeling the effects, so that's that. I've been wasting between $18 and $28 a week on bad habits for about 6 weeks, so that's about $132.

Another waste has been buying my groceries at the little market in the local town, rather than driving into the larger town and stocking up. Figuring that each item costs 25-50% more at the market, I've probably wasted another $50-75 there. Also, driving down to town several times a week for cigarettes and grocery items has wasted a TON of fuel. I'm definitely applying strict discipline to my driving/purchasing habits for the next three months.

Anyway, water (money) under the bridge, and I'm back on track. I'm torn between completely saving my money, and focusing on paying off my credit card. If I put half of every check ($250-300) toward the credit card, it would be paid off by early August. Unfortunately, that leaves me very little to put into savings, and with the transmission needing repairs, as well as fuel costs (plus tow dolly for the car) to get to Texas for the Amazon Camperforce job, I really need money in savings. I think at this point, paying the $50/month toward the credit card, being super thrifty with my purchases, and saving every available cent is the way to go. Unfortunately, insurance is coming due in July, and my Verizon bill is still over $100 even though I dropped my plan down to 1G while I'm up here with no signal. I think there's one more area I can save money on the Verizon Bill, but with two vehicles on insurance, it's over $700 for the next 6 months.

Have I mentioned that I REALLY need to get into a Class B or van??

 

[Almost There]

IIWM I'd be putting that money on the charge card. Every dollar put on the card saves you money in interest charges.

If you just save your money, yes, you'll have savings but there is no way you're ever going to make any money on the amount you set aside. The charge card in the meantime will still not be paid off AND you'll have paid all that interest on it.

Be super thrifty, you already know how to do that (shop less frequently at the bigger store), quit smoking, etc. If you need help in figuring out meal plans that will let you shop every two weeks instead of weekly or more frequently, ask and ye shall receive.

If, come time to leave for the Camperforce job, you need to, use the credit card. There will be room on it because you'll have paid it off.

 

[Optimistic Paranoid]

I'm with Almost There.  Pay off your credit cards.  The interest on credit cards is BRUTAL.

If that means no savings, well then use the card to pay for something like the transmission, if you have to.

The end result will be the same, but your credit rating will get better and better, which can only be a good thing.

It makes NO sense to be earning 1% interest on your savings while paying 12% to 18% or more on credit cards.

Regards
John

 

[ilovemyvan]

I'm 100% in agreement with the previous comments.

All the best.

Nicole

 

[cyndi]

I wouldn't worry about paying off my credit card after I had an emergency fund and my transmission fixed. I'd over pay the monthly balance, making sure it was applied to the principle by whatever I could afford and still continue to save.

The paid off credit card is going to get you nowhere if that transmission isn't fixed. And you need $$$ and back up funds to get to TX

Can you move the balance to a lower interest/interest free account?

 

[Almost There]

Tammi, let me temper what I said in my first post with this:

If your credit card has a limit on it, that if it were paid off in full, there would be enough room on it to pay for the transmission repairs AND get you to Texas for your next job, THEN it's worthwhile paying it of asap. You save a lot of the interest expense which is money in your hands.

If, on the other hand, you have a credit limit that is low enough that it won't allow for that then you're going to have to figure out how to have enough money to pay for the repairs and travel expenses, maybe partly on the credit card and partly in cash that you've saved.

I forget sometimes that some people have credit cards with low limits on them.

 

[akrvbob]

Verizon will let you put your plan on "vacation" mode where they turn off service temporarily and you don't pay. I did it every year when I was a campground host because we didn't have any cell service either. Get a cheap Tacphone for the weekends when you are in town and want to call friends and family. At the end of the season you turn it back on like nothing happened.
Bob

 

[ttpadilla]

Okay, to all the responses regarding credit card payoff...

When I got this card, I purposely asked them to set a $2000 limit so I wouldn't get myself in trouble like I'd done previously. I currently owe $1200. If I use all my income to pay it off, then I have no savings, and then I have to put things back on the credit card, and I'd once again have a high credit card balance, and no savings. SO... paying double my minimum payment (the interest rate isn't very high), and putting the rest into savings feels more logical to me. I'm still making progress on the CC, but putting money aside for travel expenses. If, once I get started with Camperforce, I find I have plenty of money left over, I'll definitely be paying off the card. THEN, if I haven't already downsized, I'll be focusing on finding a used van or similar to live in.

 

[ttpadilla]

Went to Porterville today, started my laundry at the laundromat, then tried to find a store with shade so that Bella wouldn't bake to death while I shopped. Save-Mart and WalMart had nothing available, but I found a beautiful spot for her, completely shaded by an old oak tree, at the Food For Less, so that's where I did my shopping. I think I did a pretty good job, got lots of fresh produce (blueberries, tomatoes, onions, red/yellow/green bell peppers, potatoes, yams, apples), milk, cheese, butter, eggs, sausage, chicken, some dry staples (rice, beans, pasta, cereal), canned goods, juice, peanut butter, bread, bagels, paper towels, soap, dog food, for $96. At the local market (convenience store, really) last week, I spent $86 for 8-10 items.

Tonight we're having pasta salad, yams, and roasted chicken for dinner!

 

[cyndi]

$1,200 is a piddling sum. Once you are free to focus on that yo can pay it off in no time.

I have gotten to the point where I love to see how much I don't have to spend!

 

[ttpadilla]

$1,200 is a piddling sum. Once you are free to focus on that yo can pay it off in no time.

I have gotten to the point where I love to see how much  I don't have to spend!

And my interest rate is only 12%, fortunately.  But, after thinking it over last night and this morning, I think those who voted for paying it off do make some valid points, regarding the interest accrual, and I should be a little more aggressive than the $50 a month I've been putting toward it. So, I'm going to compromise and put $100 from each paycheck toward the credit card balance (except this one, because I have to drive down to San Diego for my son's graduation on Wednesday, find someplace to spend the night that will allow dogs, and give my son something for his birthday AND graduation).  I've transferred $500 from this check into savings, which makes me pretty happy.  Hopefully I won't have to touch it to carry me to the next paycheck.

 

[cyndi]

Make sure what you are paying, over the minimum, is going to the principal and not the interest. Call the company #1 and write in on every check or make a notation on every on line payment.

12% is pretty high. Still, I think that's a good solution.

 

[ccbreder]

On any CC, you have to pay the month worth of interest before any goes to principal. Any amount paid above the statement-period interest will by definition go to principal. Just be sure you meet the statement minimum payment to avoid any extra charges. Check what the interest charge is for the month and pay more than that amount. Both my cards are in the 25% rate.

 

[ttpadilla]

They monthly interest charge just hit, coincidentally, and it was $14, so $50-100 will definitely be taking a bite out of the principal. I'll have it paid off before the end of the year. Just gotta get to Haslet!

 

[GotSmart]

I miss the CA Food For Less. Best produce department ever! If you can make it to WINCO, the bulk foods department is heaven!

 

[ttpadilla]

I hear there's a Winco in Visalia, that is really good. One of my camp host buddies goes up there about once a month, I think. Yes, the produce depart at FFL is fabulous! Nothing organic that I could find, but great prices on everything. I got a gigantic box of blueberries (really good ones) for $3.99.