Friday, September 20, 2013

Means...

When was the last time we talked about money on here? Well, since y'all brought it up. A few of facts and figures to share.

One of my mentors claims that I should be able to live on about 88% of my income. This means automatically shuffling about 12% of my income into savings. I think she trippin' #BadGrammarOnPurpose, but I trust her judgment. My budget actually includes me saving way more than that. My post-tax budget is like this:

25% - Savings Account
50% - Living expenses
10 - Tithes
15% - Who knows what? (I know what: Dunkin' Donuts, lunches, brunches, dinners, plane tickets, shoes, spas, beaches, salons, Monday Night Football wings and donations to friends' charities, that's what)

"Who Knows What" could also be called "Good Living," "Indulgences," "I'm Homesick, so I don't deny myself Anything," "I got a problem with spending before I get it," or "Feed Me, Seymour."

I digress.

In theory this budget is perfect. In practice, I use Savings and "Who Knows What" interchangeably. So if I have an expense that goes over what I've allocated for my disposable income (that's what the 15% is really called), then I just take it out of my savings. Big no-no.

I should also share that I've saved three months of "Living Expenses" and every penny that I put into my savings above that is supposed to be transferred student loans. Those bitches gotta go.

So extra spending is thwarting my debt-free efforts.

I know what needs to happen. I don't know how to make it happen. I need to embrace a spirit of sacrifice. I don't know how to do that without being extremely bored and lonely in Pittsburgh. (Entertainment costs money.) I don't know how to act like I don't have money... unless I don't have money. Like I could spend $0 in a week or I could spend $1,000. It just depends on how I'm feeling.

Has anyone ever paid their student loans off? How does it feel? How did you make the sacrifice? What brain shift did you have to make to spend an extra $200 on student loans instead of shoes? Did you find a good balance between pampering yourself and knocking debt down?

Chime in. I need your insight.

1 comment:

Ishea said...

My initial student loans were paid off when I refinanced my home years ago... but I had to take out an additional loan to finish remaining courses, thus I will have additional student loans to pay. I think saving and paying more when you can works well, but for me I'll probably look to refinance again in the future and pay it off with a lump sum.