Where to from here?

Further to yesterday’s post, we still haven’t made any decisions, though to be truthful I am angling towards paying off the remainder of the family debt. This has been further backed by an update to our budget (I do this every few months to see if what I have projected we should spend is actually accurate).

I have looked back over the past few months and noted that we have overspent on petrol and groceries most weeks over the past 3 months. This is mostly because we buy a lot of fresh fruit and vegies, and the drought down south has added a lot to the cost of these. This is non-negotiable to me though, because it is the healthiest part of our diet.

As for petrol, it has gone up and down but generally the price is huge compared to six months ago. So I need to allocate a little more to these. Added to this, there has been a small price rise at my son’s childcare centre, which will add about $10 all up to the weekly bill.

When I rework the figures, adding up food, petrol, childcare, home saving, bill paying account (a set figure each week to cover yearly or irregular bills), a car payment and family debt repayment, there is $50 left for the week.

It makes me wonder how we were putting away $110 a week on the credit card bill, and shows me I can’t afford to amass another CC debt!

The variables here are the car repayments and home saving. We are trying to pay double the minimum car repayment now because our loan term is over 7 years, which is way too long. Also, I was putting $300 a week towards home saving because that is the minimum we could expect to pay in rent for a modest home, so it doesn’t seem right to save less than this.

If I can get rid of the family debt, we will have $150 a week for general expenses, fun, clothing, charity etc. I actually expect we wouldn’t spend that much, so I was thinking that I could `sweep’ the general account on the night before payday each week so that whatever is left goes on debt repayment to speed that process up.

As for the next step – whether to keep putting the home savings money away, or use it to pay off the final debt (car) more quickly, we still haven’t decided. I guess we’ll see how things go in the next few weeks.

On a final note, I expect one more government payout this month. I am hoping this will boost the emergency fund up to $1000. It is an election year and the government here has decided to use its massive surplus to return 30% of each family’s out-of-pocket childcare expenses. Since we spend at least $100 a week on childcare, we should get a reasonable amount of money back. 

Don’t worry, I recognise how fortunate we have been over these past few months and hope to keep us on the right track so that the good luck we have had does not go to waste!

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1 Comment »

  1. […] unknown wrote an interesting post today onHere’s a quick excerptFurther to yesterday’s post, we still haven’t made any decisions, though to be truthful I am angling towards paying off the remainder of the family debt. This has been further backed by an update to our budget (I do this every few … […]

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