Budgeting The Barefoot Investor

6 Month Update

6 months ago I was broke and struggling… I always seemed to have no money. I was barely living pay to pay, before the next pay I would spend on my credit card or be living on my overdraft (and then paying interest and fees). 

 The turning point came when I had maxed out my credit card and I had no money in my bank account. I also never had any savings or emergency fund. I thought I “couldn’t afford to save”.

 I was literally broke..I had a mini breakdown to a friend and declared that I would never be in that position again. 

 

Fast forward 6 months and I am no longer living pay to pay. I have my $2,000 emergency fund now and I have no credit card. I’m generally pretty happy with where I am sitting financially. I have sinking funds set up and I have almost got enough money for some of the bigger bills next year like my car registration etc. Previously I didn’t put money away for these bills aside from maybe 1 month out. 

 6 Month Progress Figures

June 2017 Debt Balance

  • Credit Card: $2,442.98
  • Personal Loan: $9,046.24

Total: $11,489.22

December 2017 Debt Balance

  • Credit Card: $0
  • Personal Loan: $7,211 

Total: $7,211

Paid off:  $4,278.22

+ fully funded a $2,000 Emergency Fund

 Goals Accomplished

  • Paid out my Commonwealth Bank credit card and closed it! 

  • Started a proper budget and followed it

  • Listed items on Facebook for selling (made over $300 this way)

  • Compared providers for health insurance, car insurance etc 

  • Joined Flybuys Rewards Program (Now have 19,000 points)

  • Joined Woolworths Everyday Rewards Program

  • Opened new bank accounts with ING

  • Closed all Commonwealth Bank accounts

  • Moved my Superannuation to HostPlus

  • Set up sinking funds for recurring bills 

  • Cash flowed Christmas (and came under budget)

  • Balance transferred my loan onto a 24 months 0% interest Citibank Credit Card 

  • Funded a $2,000 Emergency Fund

  • Got a 2nd job on weekends to earn more money

  • Started doing survey sites to earn money (Earned $230 so far)

Note: During this time I also had to pay my yearly RACQ bill, my 6 month car registration, Quarterly utilities and get a crown on one of my teeth. These were all quite large expenses. 

 Spending Comparison

 December 2016

  • Retail Shopping: $576.94
  • Eating Out: $117.35
  • Groceries: $115.15

Total: $809.44

 December 2017

  • Retail Shopping: $191.69
  • Eating Out: $178.42
  • Groceries: $35.85

Total: $405.96

 Note: This doesn’t include Christmas Present shopping

 Future Goals

  • Pay off remainder of my loan 

  • Fund a $5,000 savings account

  • Start contributing to my superannuation

  • Buy shares

love tasha

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