OK, I pulled in the reins …

… and I think I’ve undone most of the damage. I’m not sure what really happened there in May – apart from those few big expenses – but the upshot is my emergency fund is no more. Whatever was left is gone. It’s okay – we’ll build it back in no time.

But on the upside, my money is back to being managed. We’ve dipped in to fun money this week and covered the shortfall. I’ve got a cheque to cash on Wednesday for $550 which covers the last of the overspend, then the pay for my uni work this semester – plus my regular salary – will keep us up to date on car payments.

That means that by next week, I should be able to get the debt under $2700 – on target. By then the $2100 from our insurer should be through, and we will have just $600 to find to get rid of the debt by the last pay wek in the month. Just in time for the end of the financial year.

What are the priorities then?

  • Get our $5K emergency fund happening
  • Save for our trip south later in the year
  • Try to figure out a way to make more money so we can buy a safe, reliable used car outright before I start work in January – haven’t figured this bit out yet!

Some of this is going to come from tax refunds and other government payments that start being paid out once tax returns have been submitted (due after June 30). The rest is just going to come from hard work.

Nowadays, I’m not so freaked out about reducing the debt. Isn’t that weird, given how close I am now? I used what would have been my car debt payment to cover the other expenses on Thursday, and there was a time when that would really have upset me. I think I’m starting to emotionally leave the debt behind. I now just make decisions that are more based on what makes the best financial sense, instead of what will reduce the debt fastest.

On another tack, reading around the blogosphere this week I was impressed to read on Fabulously Broke in the City’s right-hand column that she has accumulated $18,000 in retirement savings since 2006! I thought that was a super effort, so go and have a look for yourself. Thanks for linking back to me about that, FB!

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1 Comment »

  1. Aww *blush*

    It was nothing. It was more of I never even saw the cash because it was deposited into another account to accumulate and give me a free 100% match 😀

    as for reducing debt – I just want this month over and DONE WITH so I can tell my one debt to eff off LOL

    It’ll be exhausting to do it again with my second debt, then it’s all downhill from there 😀

    Hang in there!

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