COVID finances & goals update - March 2021
By maezee
@maezee (41988)
United States
March 18, 2021 10:22pm CST
I like to check in every now and again since I started being a bit more responsible about money since COVID. I paid off my credit card debt that never seemed to go anywhere, paid off my studnet loans last year, built a super small savings account...I still have A LOT of work to do.
Credit Card Debt: $0
Student Loan Debt: $0
Car Loan: $8,319 (-only $700 paid off since end of January)
Savings: $1,000.00
I am really trying to get into spending less money and saving more money. It's SO hard though! As I just want to travel and buy nice things. LOL.
I finished reading one of Dave Ramsey's books (super rich financial guru) - don't LOVE all of his ideas or personality, but he has some basic "baby" steps to take to become more financially fit:
Step 1 - Put $1,000 away into an emergency savings fund (DONE)
Step 2 - Pay off ALL debt (except for mortgage)
Step 3 - Save 3-6 months of living expenses in your emergency savings fund
Step 4 - Invest 15% of your income in retirement funds
Step 5 - Save for your children's college fund (if applicable).
I am going to avidly try to do steps 1-3, but then my next step after that will be to save up for a down payment on buying a house. But, in between, I do need to keep myself sane and go on a few domestic trips. So, this whole process will take a while. And, I need to pay off my car which is my only debt at the moment.
One thing I have not really ever done in my adult life is making a legit BUDGET. Seriously, never. I usually just let myself spend until I can't spend any more.
I think I would have made more progress on my financial goals if I hadn't spent as much as I did on my recent 6 day vacation to Tucson ALONG WITH recent (unnecessary but fun) shopping expenditures... My main lack of savings come from: useless shopping, casino overnight trips, FOOD budget (out of control - since I have NO budget), overnight casino trips (but I have so much fun!), and more expensive travel. As for specific shopping problem areas: body, soaps, hair care - and fun but expensive health and workout supplements. Ugh!
My goal by the end of April is to: have car loan debt down to $7,500 or below (means paying off around ~$800, but I think I can do it if I spend wisely).
What are your financial goals? Any specific ones? Best of luck to everyone.
7 people like this
7 responses
@marguicha (223819)
• Chile
19 Mar 21
I have spent half of what I used to spend in a month since Covid started.
1 person likes this
@ptrikha_2 (47077)
• India
19 Mar 21
Well mine is to accumulate enough to pay off some of my outstanding debts. Yet there are expenses coming here and there. Incoming money has increased but need to increase the supply even more as continuing debt keeps on hurting.
So need to keep on working hard towards my goal.
1 person likes this
@JudyEv (342179)
• Rockingham, Australia
19 Mar 21
Having any sort of a plan is a great start. Well done for the progress you've made so far.
@teresatrotter (4073)
• Jacksonville, Florida
19 Mar 21
Nine months ago - student loans paid off.
Last month - all but one credit car paid off. the last one will be paid off by May.
No car payment.
Have $1,800 in savings I started last year.
Have $250 in a CD savings that earns more interest I opened up last month.
Will add more savings when I see what is left from my stimulus check...so those numbers will go up.
I did Dave Ramsey's course. It was good. But like you, unsure of all his principles. But I learned a lot to help me.
His ideology is to save some, spend some, give some. You need to have some fun money to spend that you don't feel guilty for spending it. When you do, it makes it much easier to save, and give to charities and churches.
Give yourself some play money, you will find you will not spend so frivolously on other things. If you need something, save up until you have enough to get the item you want. It teaches patience, and self control with your finances.
1 person likes this
@maezee (41988)
• United States
19 Mar 21
I agree! His Debt Snowball makes it seem like the debt is an EMERGENCY and you must do whatever it takes to pay it off ASAP. But I agree that I think if you act more balanced and don’t totally deprive yourself it’s easier on yourself. So I agree. I am proud of your progress and hope it continues! I am excited to have no car payment, it has been a while.
@Janet357 (75646)
•
19 Mar 21
I like discussions like this because it motivates me more. You can do it. If you could do it with your credit cards, you can do.it to.your car loan. I don't have debts though. most of my earnings go to my savings account. my husband shoulders all the expenses here and does not touch my money.
