Wednesday, August 25, 2010

Budget for debt repayment

Here's a sneak peek at our new budget for debt repayment.

We bring in about $5,500 per month, with a few three paycheck months. 

Rent: $1,444 (until May, when it will drop to $1,428)
Cell phones $115 (Peanut pays $45 to a family plan, mine is $70. We're both under contract until next summer.)
Renter's insurance $10
Utilities $80

Food $500 (this includes eating out and groceries. Pretty generous!)
Entertainment $30

Internet $40
Household/personal $40
Laundry $30
Transportation $90 (Peanut's monthly metrocard; mine's a pre-tax perk at work)

Total $2,379

Leaving $3,121 (plus those third paychecks in three paycheck months) to throw at our student loans
 
Notice what's missing:
Travel, including travel home for the holidays
Clothes and jewelry
Yoga and dance classes (I have to earn the money through dancing to continue going to class -- and no new costumes!)
Electronics

Still, we've got $500 in the food category, which is pretty darn generous. Frankly, this is hardly bare bones. We're not cutting cell phones, we're not cutting internet, we still have an entertainment category for movies. We're going to try to cut back on eating out to spend less there simply because we don't need to be spending that much. Not going home for the holidays isn't much of a loss, as we don't have anymore vacation days due to the wedding -- and we'll have seen all of our families so much because of the wedding that we'll be sick of them. (Kidding! Sort of.)

So there you have it. Our "whaling on debt" budget. Wish us luck! And watch for changes to take place around the blog in the upcoming weeks, including some new sidebars trackers, a monthly post about how much debt we've killed, and weekly spending recaps that help us focus on having more no-spend days.

1 comment:

  1. The budget looks do-able. And you know what? I don't think I could cut internet, some entertainment money, etc. It's important to not feel deprived while paying off debt.

    ReplyDelete

Thanks for commenting!