So I’ve been whinging on here lately that I don’t know where all my money is going, my savings are depleting, yadda yadda.
Well tonight I finally sat down and took stock of everything. I’ve had to reevaluate some things and cut others out completely, but I think I have a plan in place now that will mostly run itself. Now I should finally be able to increase my savings instead of seeing them drain away…
So what did I do, you ask?
Well, the major move involved consolidating some of my accounts and closing others. I think the reason I was feeling stressed was because I was spreading myself too thin. I had too many goals and not enough cash, so I felt like I wasn’t getting anywhere.
I’ve closed my random HSBC account (they’re retarded anyway) and shifted the funds into my EF. I’ve also decided that now is not the time to be saving for a condo, so I’ve shifted all of those funds into my EF as well. This will bring my EF up to over $1000, so PC will give me the 3.05% interest rate from now on.
Now I am left with:
– Chequing
– Emergency Fund
– Vespa/Travel Fund
– Wedding Fund
– Chequing
– Emergency Fund
– Vespa/Travel Fund
– Wedding Fund
Which I feel will be much more managable. I still plan on saving for a condo, but realistically I cannot live to my comfort level and put away anything of significance. Perhaps if I find myself with some sort of windfall in the future I will use that to jumpstart it, but for now I have to focus on my priorities.
My priorities are:
Emergency Fund
This is super important to have, as any PF blogger will tell you. I have drained mine as of late (wedding costs, booze weekends, frivolous spending) and I need to rebuild it ASAP. There is nothing I like less than not being prepared. With the fresh cash infusion from my condo and HSBC accounts, this should be well on the path to recovery in no time. I have allotted $150/month to it moving forward.
Vespa/Travel Fund
You all know how much I want a Vespa, so this is important to me. I was originally going to dedicate the entire account to the Vespa Quest, but I’m coming to realize that I really want to travel again soon. My new roomie is a travel agent and wants to take me on a Familiarization trip with her to somewhere tropical (that’s when they go to a resort to learn about it and can bring a friend at reduced cost!) so I need to start saving for that as well.
Since the saving is going so slow, I think I will have to put off purchasing the Vespa until spring of next year, in order to accrue enough funds. The trip will come before that, but it will also be much cheaper than the Vespa ($600 vs. $6000). I am allocating $100/month to it moving forward.
Wedding Fund
I’ve had this account for ages and it has remained virginal up until now. I am not going to spoil this until my wedding! Abstinence, people! Abstinence! I have reduced the allocation to $50/month moving forward.
I am a visual creature and I think that being able to see my money in larger chunks this way will help me see what I am accomplishing. Now I’ll be able to garner the higher interest rates in all my accounts and also see my goals met faster. I am a bit impatient!
After figuring out how much all my fixed costs (rent, transport, Jenny food, etc.) were and then deciding how much to allocate to savings each month, I should now be left with about $471/month for shopping, entertainment and junk food. Or I could save even more of it.
Does this sound like a solid plan to everyone, or can you poke any holes in it? I’m pretty confident that I got the fundamentals down. I have no debt, I am living within my means and am saving regularly.
I guess I’ll reevaluate this plan in a few months to see if it worked!