Following the “deleverage before you invest” tip, I’m going to attempt to zero out my debt within the year again. If I stick to this budget, I can pay off my credit card debts in 4 months, and be well on my way to bajillionairehood. I’m not sure how realistic it is, though. And I’m not sure if I can really stick to it.
This is the nth time I’ve made a budget like this, and so far, it has never worked. Either some huge expense comes up, or I overspend on something. But what the heck…
Rent & other household bills – 18%
Transportation (gas, parking, car maintenance) – 10%
Food – 8%
Cellphone, shopping, entertainment – 8%
Buffer/Emergency fund – 8%
DEBTS – 48%!
I’m praying it works this time, because unlike before, I allocated money for an emergency fund, and accepted that I will still spend for shopping and entertainment.
The question now is, will I be able to stick to it? It’s summer, and friends and relatives are planning trips left and right. And will I be able to resist the urge to use my cards? And put off for several months buying the dSLR I’ve been wanting for so long?