August 2006 Financial Plan

Now that I have a good idea of where I stand in terms of my net worth and how my debts are spread, I need to get cracking on paying it down!

Here is my plan for this month considering my starting point of $4850 in cash on hand.

  • Pay regular monthly expenses: $2350 (also includes my food budget which is still under review).
  • Pay my parents this month’s loan payment: $350.
  • Pay CC1 off in full in 2 installments over the month $448 on 8/10 and $400 on 8/31. I am using two payments this month because I do not have an emergency fund set up yet and so I need to keep some cash on hand until my next paycheck (9/1).
  • Pay minimum payments on CC2, CC3, CC4, and RCC2 on 8/31. Total: $90.
  • Use half of the remaining $1200 on RCC1 on 8/31: $600.
  • Use half of the new remaining to start an Emergency Fund (in a high yield savings account) on 8/31: $300.
  • Use the rest as the beginning of my Roth IRA on 8/31: $300.

I pretty much just decided this off the top of my head, so if anyone has any suggestions on how to better manage my situation, please comment!

My thought process behind this plan is to:

  1. Pay off regular monthly expenses (rent, utilities, auto, food).
  2. Attack the highest interest rate credit account.
  3. Not miss any payments on the lowest interest rate credit accounts. Here is where I get a bit unsure of my decisions…
  4. Attack next highest interest rate credit accounts and start my savings process. (HELP! Is this right??)

Here goes nothing…