Posted on December 21st 2008, 9:07 am
It's almost 3:00 am, and I'm starting to finally get tired. I've been working on the function and structure of my new budget / finance spreadsheet, and I realized there is a bit of hope there. I've been clinging to my current situation like gum clings to hair. I have been unwilling to budge to change my lifestyle and what I want. However, it would seem that maybe my best bet would be to sacrifice my situation for now and get into a position where I can maximize my debt payments.
First off, if all goes as planned next month and I can bill for the amount I think I can, then I can quickly and easily pay off my furniture and my medical bills in one swoop. I can put some money aside for taxes too. After that, I am down to a 4 dollar deficit for the month. In that situation, I could make some changes to get into a more secure situation. For example, I could negotiate with T-mobile to remove my data plan from my phone. I could cut my donation to NPR. I could also cut netflix, as much as I'd rather not. I could cut back electrolysis by 15 mins. That's a savings of 63.33 a month. Then we're at a positive 59 dollars a month. Sure...still need food, cat supplies, toiletries and gas, but its closer. If I found some way to get started on a debt consolidation plan, that would drop my rates significantly down to $504 a month total. Right now we're looking at a min of 650. So now we've got an extra 146 to that number, totaling $205. Now that can feed me, my cats, buy toilet paper, and hopefully gas. Things would be tight, but if I keep doing freelance, we're a bit safer.
The more extreme option...and I'm not sure I want to do this yet...would be to move home. It's probably the smartest thing to do honestly, but I'd have to find a subleaser. Rent is the other single most expensive cost I have right now. Due to this change, I'd be cutting out the internet bill, the electric bill, and my insurance rate would drop....I think. In that situation we're looking at an 850 dollar surplus. If I consolidated my debt, we'd be at a $1000 surplus. Food becomes a non-issue. Same with toiletries. I just have to keep my cats comfortable. I could put $400 in savings and an extra $500 towards credit debt. Essentially we'd be looking at paying off my debt in 2.5 years if I did nothing but save my freelance money. If I used my freelance to supplement my debt repayment, who knows. The thing I sacrifice...freedom. Dating is impossible again. Phone calls are no longer private. Plus, I have to deal with parental drama. Can I tolerate living at home that long? Also, what if I land a sweet job elsewhere? What happens to the plan? If I make more money, probably nothing, but who knows.
What are your thoughts? I'm going to go sleep on this idea, and probably will have to sleep on it for a few days.