Monday, October 2nd, 2006
October Progress Report
There's been a lot of change in my financial life this month, primarily because of a recent winning streak in Las Vegas. I'm not advocating getting out of debt by gambling, and in fact, I'm not not advocating gambling at all, but my winnings have paid off my debt and have left me in better financial shape than I've ever been, for which I'm grateful.
Just to recap my system here, I make a certain amount of money every month, which is my yearly income divided into twelve equal parts. This number is 100% of my monthly income, a number we'll call X and for simplicy's sake, we'll call X $10,000, and all dollar amounts in this post are based on that scale. Right off the top, 29.9% ($2,990) of that money is taken away and given to federal, state, and local governments, leaving me 70.1%, or $7010.
My bills this month were 30.3% of X, or $3,030 (including scheduled debt payments), which is quite a bit less than the 51% ($5100) I paid last month, which is due to changing circumstances and previous debts being paid off, and next month they're going to be even lower. This month, I paid 99.5% of X in bills, or $9,950, $8,100 of which went towards debt. On the 29th of last month, I officially became DEBT FREE.
Based on my $10,000 a month scale, I came home with almost $17,500 from Las Vegas which has allowed me to save, invest, and to treat myself to a motorcycle, and it will also help me pay security, first, and last on a new apartment this month, which is certainly handy. It also completely blew away my debt. My *net* worth stands at 487% of my monthly income, or $48,734 from a net of 238% ($23,830) a month ago, primarily because of that influx of cash and the alleviation of debt (though the dow is cookin' these days!).
It seems as though I may not need to do these monthly updates anymore. I've continued to write in my journal and work towards my goals for the year, many of which have already been accomplished or are well on their way, and my finances are completely in order, and three months early! Perhaps an update at the end of the year would be a good idea, as I'll be settled in a new place, working towards some new things, and making some longer term plans, of which you'll be kept abreast.