Hello July! I turn 25 this month 🙂
I have decided I will now include my debt AND spending each month. I wanted to see exactly what I’m spending my money on find little places I can save a bit more. The breakdown is below!
I still feel really positive about money and my journey to becoming debt free. Sure, my total debt increased but I don’t feel stressed about it at all. I would love to be debt free now but this is how my life played out and I’m responsible for all of it.
**In the chart below, I show that my debt increased by almost $400, but in reality it increased over $18,000 from May. I decided to set the starting balance to include my car which is why the number is low!
Something else you may notice compared to last month is my list of debt is a lot shorter. This is because I decided to list only the total of my student loan debt rather than each individual loan. It makes it easier for me.**
DEBT PAYMENT/INCOME SPREADSHEET
*This spreadsheet does not include payments for my insurance (life, health, vision, dental)*
CURRENT FICO SCORE: 682
THE GOOD NEWS
My credit score went up 16 points
In May and June I paid off over $1000 in credit card debt so I think that’s where the big jump came from! My credit utilization is still about 42% and I need to get down to 29% to be in the “green zone.” Almost there!
I paid off my UPromise credit card
As I mentioned last month, I wanted to pay off another credit card after my Care Credit and I did just that! The total was about $560 and it’s so satisfying to see $0 owed for TWO accounts!
THE BAD NEWS
I discovered the huge downside of leasing a car
My lease ended in June which means I either had to lease a new car, buy a new car, or buy out my lease. Well, I knew I didn’t want to continue leasing but the dealership wanted over $19,000 to buy out my lease. By the way it was a 2015 Toyota Camry SE with about 41,000 miles and I had already paid $7000 toward the car. That was too high so I opted to purchase the same exact car in a different color with less miles instead to save about $2000.
If I could go back I would have just purchased my car in 2015 HOWEVER, leasing was a good option for me then because I had a low income and leasing was affordable.
My debt is now $18,000 higher
Because I decided to buy a car my total debt increased by over $18,000. I purchased the car for $17,380 and put a down payment of $1000. However, I guess after interest and whatever else the total exploded up to about $18,600. My interest rate is high (6.79%) because of my low credit score. I did sign with my dad and I plan to refinance in a year when my score improves!
I’ve decided to start including my spending habits for each month as well! I added up every single penny that I spent and divided it into categories.
Savings: I’m not including this in my “spending” total because it’s not actually spending. My income is not taxed, therefore I transfer $1550 from each paycheck every month into my savings. I also use the app Qapital which rounds up all of my purchases to the nearest $1 and contributes it to a savings account. And finally Bank of America transfers a couple dollars every few days to my savings account automatically.
Rent/Utilities: I live with my sister (and her boyfriend) so $600 goes toward the mortgage, electricity, internet, etc. $100 goes toward the money I owe her!
Food: I don’t spend much money on going out to eat. I tend to spend quite about (about $70 each week) on groceries though. This total includes a few outings though. This area I can definitely improve in!
Gas: I drive 22 miles to and from work Monday-Friday so I have to get gas every weekend. $118-$130 is expected for gas each month.
Health: This includes a massage, my multivitamins, and my gym membership. This should vary a bit each month depending on if I get a massage or not!
Car: $1000 went toward my down payment as I mentioned earlier, $20 was for the tag fee. From now on this will be about $315 each month!
Credit card debt: Pretty self-explanatory but if I were to pay the minimum due on all of my credit cards I have to pay less than $100 each month. I am now paying at least $600 toward my cc debt until it’s all paid off.
Student Loan Debt: I pay $288.37 every month. Once I pay off my credit cards I will throw extra to my student loans!
Insurance: This includes vision, dental, and life insurance. I have health insurance through work on top of my salary which is really nice.
Business: This literally includes just paying for hosting/my domain for this blog, which is $7.99 each month.
Other: This category basically includes unnecessary spending. For June I bought a pair of joggers, CBD oil, workout supplements, and a book. I could improve in this area but honestly I don’t think it’s so bad.
I spent a total of $3,766.82 in June (NOT INCLUDING my savings) and that is without charging to any credit cards! Well, I use my Bank of America cc for many purchases just to get the cash back but I pay it off right away!
I do not stick to a budget because I don’t think my spending is out of control. For July my main goal is to spend less on groceries and increase my extra income, but I think I’m doing pretty good over all!