CC Debt Free by 2012

I've changed my mind yet again with respect to my budget. From now until the end of the year I will clear my meager savings to put towards debt and pay down debt at a rate of 60% of my take home income. This puts me on track to be credit card debt free by the end of 2011. Here is my new budget:

Debt	60.00%
Food	12.00%
Wants	10.00%
Auto	9.00%
Medical	9.00%

Personal finance goals for November:
Stick to weekly budget
Pay off at least 1,000 dollars on the large credit card


In the month of November I put 1,677 dollars towards credit card debt. As such I realized my true goal of being credit card debt free by the close of the year was possible and have thus re-adjusted my budget and December goals.


PF goals for December 2011:
Pay off all credit card debt


I'm keeping it simple. Despite a few medical costs this month I am determined to eradicate my credit card debt completely and keep it off all of 2012!

2012 Budget Revamp

See the below chart.

On the left is my current budget, on the right my goal budget I hope to be following by the end of 2012. This means siphoning money towards debt to savings and transportation costs. I will use 10% of my savings for long term and 10% for short term (travel and events). My transportation costs will go up in 2012 as I hope to get a used Corolla for around 13,000 and would be paying the loan back (which I would classify under transportation rather than debt). A modest increase in food allowance and medical expenses budgets.

The 25% decrease in debt repayment should be achieved by paying down my high interest, low flexibility debt in the first half of 2012 leaving only my government student loans and some personal debt which I can pay back at a slower rate. I plan on ridding myself of credit card debt and my private student loan by July.

I've been thinking a lot about budgets

Housing
Utilities
Transport	9.00%	20.00%
Savings	10.00%	20.00%
Debt Repay	45.00%	20.00%
Healthcare	8.00%	10.00%
Food	14.50%	15.00%
Wants	13.50%	15.00%
	100.00%	100.00%

First Weekly Budget

Here is my budget for this week. Yes, this WEEK. I am going to budget on a weekly basis right now because I get paid weekly and don't have many monthly expenses.

Debt	45.0%
Savings	10.0%
Food	20.0%
Gas	13.0%
Medical	0.0%
Category: Fun	10.0%
Entertainment
Dining Out
Treats
Wants
Books
Clothing	0.0%
Auto	0.0%
Bank Charges	0.0%
Hygiene	2.0%
	100.0%

 

As you can see, certain categories have no percentage allocated to them for now. This is because I am in heavy debt repayment mode. I'm trying to get my last credit card to zero (in 3 months!). Any time I have left over money from the week it goes to debt (except hygiene which rolls over). In case you are wondering about the large percentages to gas in food, keep in mind I'm not making much hourly, but fortunately I am getting off temp status and going to full and it comes with a nice increase in my hourly pay. Expect to see these percentages change!