My Financial Plan for the next Nine Months

Posted by Mrs Money on November 20th, 2008

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Well, it looks like I’m safe for about another year at my job.  There is talk that they won’t be switching over branches in my area to the new bank until third quarter of next year.  Also, I heard that they’ll look to find me a comparable position to the one I’m in currently, and if they can’t find me one, I’ll most likely get three months pay as a severance package.  I’m breathing a sigh of relief.  Rather than wallowing in my sorrows, I’m going to make a financial plan and stick with it for the next 9 months or so.

  • I am planning on paying off the last student loan in nine months.  We owe $6850 on it.  That’s a payment of $760 a month.  It sounds astronomical, but I think we can do it if we really focus.  Any extra snowflake money will go towards it.  I think that the peace of mind from having that gone, and having one less payment will be worth it.  Then it’s to attack that car loan.
  • I will still save 20% of my paycheck in savings each pay period.  This way I’ll still feel that I’m proactively saving money.  Every little bit helps!
  • I’ll continue to make minimum payments on our other debts, and maybe some small principal only payments as well.  
  • I need to come up with a zero based budget.  For some reason this scares the bejeebus out of me!

What is your opinion of my financial plan?  Do you think I should keep saving instead of paying off that loan early?

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8 Responses to “My Financial Plan for the next Nine Months”


  1. Miss M says:

    I think you have a great plan. I’m sorry that a potential layoff is the reason. I do zero based budgeting, didn’t even know that was what it was called until recently! I use a “miscellaneous” fund to cover any unbudgeted expenses cause with zero based budgeting, you have no cushion. Let me know if you have any questions, I’ve been doing it for 7 years.

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  2. Kacie says:

    That’s comforting to hear that your job is holding steady for now.

    I’m not sure what 20% of your paycheck amounts to, but I’m more risk-averse so I’d probably load up my emergency fund a bit more aggressively and then pay off the debts a little later.

    You mentioned “other debts.” Which do you have other than the student loan and car loan?

    It’ll be great to be rid of your student loan! Freeing up the minimum payment each month + snowflakes is bound to have a great impact on your bottom line.

    I think zero-based budgets are tricky, and I’m still trying to figure out how to work it best. It seems I need to still include some wiggle room in it, since things always pop up that aren’t quite emergencies but still need to be paid.

    Good luck with your 9-month plan! Keep us updated.

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  3. Mrs Money says:

    Miss M- I’ll probably email you about this zero based budgeting! It intimidates me! :)

    Kacie- Thanks! :) I checked today and it’s 25%. I figured that overall, we were saving about 13% since Mr. Money and I make close to the same amount of money. The only debt we have is: a student loan, car loan, first mortgage (6.375%), and second mortgage (6.87%). I do pay a little extra to principal each month. Not too much but enough that it makes me feel like I’m chipping away at it!

    The zero based budget is confusing to me too. I guess I feel like there is always something that pops up (like we took one of the cars in and it cost us $55 to have them do nothing!) and when that’s not in the budget I feel like I fail. I think the cash envelope system may be better for me but then I lose my points by not using my debit card. And also, if I budget I feel like I’m restricting myself and when I go over or buy something I want that’s not a necessity, I feel bad. I need to quit worrying so much! ;)

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  4. MIss M says:

    There are a few tricks I use, like for utility bills I budget based on what the highest month’s bill is. That provides a cushion, then I have various accounts I put money into each month like pet care and the house. If the house needs repairs, I have over $10k set aside earning interest. I need to start a car repair fund, now that it’s paid off I’m sure everything will break! If I go over I draw it from my miscellaneous fund. Then, you have to balance your accounts at least once a month and anything left over in your checking account goes to debt or savings. I guess there is a bit more to it, you can email me at misformoney@sbcglobal.net if you have questions.

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  5. Miss M says:

    Hey Mrs Money, I wrote a post for you on zero based budgeting. Mainly tips for being successful, come check it out and let me know if you have any more questions.

    [Reply]

  6. Mrs Money says:

    Miss M- I have what I call a “secret account” for extra money that I put there so I don’t spend it out of my joint checking that we pay bills with. I really like the idea of taking the checking down to zero. I’m going to start doing that. I know that if I have the money in there, I am more likely to spend it! ;)

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