I just don't get it . . .
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| Mon, 03-09-2009 - 10:21am |
Well, the end is in sight for the CC. With my tax return and rent money in April, I should have almost have that sucker paid off. This is great news. But I was sitting down the other day (after reading two Elizabeth Warren books) trying to figure out what I would do after the CC is gone. My plan has always been to take the rent money and put it into savings because I don't ever want to include it in my general budget (i.e if suddenly rent stopped, I would be okay). But then if I do that, I should ALSO have savings in my general budget in order to be more realistic. So I was playing with numbers and I end up with LESS spending money then I had before!!!
Here is the background (this may get long).
I rent two rooms in my house, one to sister and one to another roomie. This brings in $1000 a month. Roomie #2 is moving out May 1, and BF is moving in. BF is going to pay exactly what old roomie did. Part of the rental agreement with my roommates is that a cleaning lady who comes biweekly (cost $80 each time). I also provide all utilities, cleaning supplies, internet, phone etc.
Once roomie moves out, I am going to make the following changes:
1) Reduce phone to basic service and cancel long distance. He uses it because his family is all over the country and it was part of the rental agreement. I got an offer for a basic line for $18.00 a month and am going to use a calling card or

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That makes way more sense. IMO I think you are good to be focused, but I also think you should cut yourself a bit of slack for a month or two and CELEBRATE paying off the cc.
If all you are putting on the card each month is stuff that you are required to for your renters and you pay it out of rent money, fine...if you are charging other stuff still I will tell you what I did...I took an envelope from ING (the ones that have the "save your money" logo all over the inside and made a sleeve for my credit card. I turned the paper inside out, cut it to fit my cc and taped it together neatly to make a sleeve that is open at one end that says "save your money" all over it. That is what I see when I take the cc out of the drawer.
Hey, you are doing great, and perhaps you could increase your savings gradually. One thing I have been doing is ignore my raises, and whatever extra I get goes into savings, and keep on living as before. Please don't get all worked up because Elizabeth Warren or Dave Ramsey or so-and-so said this and that - those are simply guidelines, and very often based on the US system. The situation is slightly different in Canada, and vastly different in, say, Scandinavian countries. I dated someone from Denmark, his income tax was around 65%, never saved (and it was impossible) for retirement, but then he would get a very livable pension and medical coverage upon retirement.
Don't beat yourself up, it's only Monday! ;-)
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