General Goals 1) to be debt free in 3.5 years 2) save lots of money

Friday, March 11, 2011

The Cost of Debt and Budget Bumps Again...

The other day I was getting an update on my line of credit. Over the course of the conversation I asked how much I am spending daily in interest. I was lucky enough to have an amazing lady on the other end and she took the time to look over the last few months and generate the figure for me.

Daily interest per month:

December: $4.21
January: $4.14 (-0.07)
February: $3.94 (-0.20)
March: $3.89 (-0.05)
TOTAL: $ -0.32

How gross is it that in December I was spending $4.21 a day in interest. I wonder what I was spending in September...

Today I was paying bills and putting money into funds while watching Till Debt Do Us Part. However I wasn't paying attention and my computer cookies put in the amount to pay OPSA. This means that instead of paying $200 to OSAP I actually paid $300. While $300 isn't a bad thing it was just not budgeted for and as such my bi-weekly budget ended up being $100 short. As such I have not put $50 into my Cat vet bill fund and I did not put aside $50 for my phone bill. This means that I will have to reduce my Line of credit contribution next pay from $500 to $400 in order to make up the budget shortfall from this pay. I know that in the end of the month it will balance out; I am not happy. I am not happy because it should not have happened, I should have been paying attention.  The second thing because I have reduced the amount going into my line of credit from $800 to $700, this is less then amount that I put into my line of credit in January. This is the most depressing part, I want to reduce my interest cost by another $0.20; which happened between January and February as a result of putting $719.90 into my line of credit during the month of January. The third thing is at end of the year I am starting to worry that I will not hit my $15,000 target. We are 3 months in and I haven't even got $2500 in my extra $15,000 fund.

Lesson Learned: Can't watch tv while paying bills. One activity at a time.

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