Ok, I’m gonna be real with you. April was a hot mess. Is it weird that I always have a month where things go smoothly and then a month where my finances are an absolute wreck?
One of the biggest lessons I learned this month is to ALWAYS have a few extra hundred dollars in my savings on TOP of whatever financial goal I have for myself. I learned this the hard way when I bought my new Canon 6D kit.
The month was going smoothly until I was preparing to buy the camera kit and as soon as I bought the kit and drained my savings, I got sick. Look, the chances of this happening is slim to none. The last time I got sick was way back in college and I’ve been in really good health since so it came as a total shock when I came down with a horrible cold a few days after buying the camera.
It was a struggle to stay afloat because I couldn’t do any work for a few days. I managed to make it out ok but it definitely brought me back to the times when I wasn’t saving money and would go into panic attacks when shit hit the fan financially. So for future reference, never drain your savings to pay for stuff you’re saving up for. Always have a little bit extra in case something happens.
April was also just an incredibly expensive month for me. I had to pay off a parking ticket as well as a traffic ticket I got so I went WAY over budget compared to previous months.
But you know what, its ok. May is the start of a new month and with it, a fresh start with my finances. Especially since I got a head start on my buying my camera, I have the freedom now to figure out what to do next with my savings in terms of paying off my debt. Last year, I was told about the snowball method of debt repayment and I’ve been applying it here and there when I have extra money.
How it works is you line up all of your debt from smallest amount to biggest and you focus all of your attention on paying it off in that order while making minimum payments on the larger bills, thus minimizing the sheer amount of individual debts you owe. It also helps you psychologically because you’re constantly crossing debts off your list which is not only motivating, but also pretty exciting.
I think my next financial goal is to pay off the remaining personal debts I owe to my friends and then focus on getting my credit utilization down to 75%, then 50% before the end of the summer. My goal is to get my credit card debt down to 30% by the fall and then completely paid off by the end of the year!
I’ll also be saving up for my trip to Southeast Asia next year so it’ll be concurrent with my debt repayment. I’ll keep you guys updated on this through my financial life series this year so stay tuned!