I haven’t really set a budget, because I’m catching up on so many bills. But I know one thing for sure, is that in order for me to not be reactive, but instead proactive for my financial life, I need savings. I’ve read plenty of blogs about how to do this, and I do think that it’s something that should be designed for your lifestyle and goals.
My plan is slow and steady. For now, I’m going to deposit 10% of my weekly check to my Savings account the day after I get it. This way, Savings is the first thing I do with every check. I have a few things on collection, and few accounts that are not current to work on while I’m on this 10% plan. After I’ve paid the following things, I will up the percentage by 5% for my savings plan. And every time I’ve paid off something on collection, I will increase my savings budget by 1%. Until I have $3,000 in my Savings account. At which point, I’ll need to re-strategize my Savings goal. I think that’s a good number to have in my liquid savings minimum. After I have that amount, I’d like to re-examine what my debts are, and other savings goals and then re-strategize. It would still be important for me to keep contributing to savings in order to keep that habit, but I would like to have a more aggressive plan on saving for a real estate down payment/ retirement/ business capital/ travel/ wedding/ debt payment.
- Pay off $500 debt to cousin.
- Have my Phone Bill current and no longer on ‘payment plan’
- Have my Power Bill current and no longer on ‘payment plan’
- Increase Savings Rate to 15% of income.
- Pay off Parking Ticket
- Pay off Ticket from a long time ago on [Collection]
- Pay off Credit One Card
- Pay off Capital One Card
- Check Credit Report and Re-strategize.
Off the top of my head these are my immediate needs. After all these are paid, I need to review and restrategize, I think this will be when I start tackling my student loans.