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Home > Back on savingsadvice, thanks to new job

Back on savingsadvice, thanks to new job

August 20th, 2006 at 12:41 am

I have been gone from savingadvice for awhile. I stopped visiting because I was unemployed, not eligible for unemployment, had no money to save, and began having a lot of anxiety problems surrounding my finances. I really couldn't even think about my finances- even open bills- because not having any money coming in just really, really stressed me out that badly. My credit rating has suffered a lot (probably about 100 points) and I have about $2500 in credit card debt that I need to pay off.

But the good news is (yes, there's good news in this whole mess) that I have an income again.

So I'm going to take the next 4 months (Sept-Oct-Nov-Dec) of guaranteed work (the job ends in January, at that point I might be placed elsewhere in the same company, I might not; depends on work availability and performance) to pay off my credit cards and start improving my credit rating. I know that with all the late payments I've had, my credit rating can only improve so much in 4 months, but I'll do what I can. I'm not planning on needing credit anytime in the next 2 or 3 years (at least) so if I pay on time from now on, my credit rating should be much beteter by the time I want to buy a house or something, which right now looks like it's going to be in the very far future, if at all.

Plan for future:
1. Pay off smaller card (DONE)
2. Start putting away $100/month to retirement and $100/month to emergency fund (DONE)
3. Send $600/month to larger credit card, get it paid off within 5 months
4. Increase Roth IRA contribution to $333/month (to max it out for the year)
5. Increase emergency fund contribution to $400/month

That's the plan for now. I should be here by January; if my job continues, I'll be set. If not... Well, at least at the end of this job I'll be eligible for unemployment, and have no debt, so that's not so bad.

4 Responses to “Back on savingsadvice, thanks to new job”

  1. LuckyRobin Says:
    1156039089

    Sounds like a good plan.

  2. baselle Says:
    1156052526

    Welcome back!

  3. meaghanchan Says:
    1157202485

    Thanks!!

  4. Broken Arrow Says:
    1160055423

    Yes, welcome back. Worrying about money is such a terrible feeling. I can relate.

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