The Biweekly Breakdown

Reading Fabulously Broke's Money Diaries made me consider how boring my money diary would be.

Sample Excerpt:

Yesterday, I spent nothing. Today, I bought a cappuccino ($4.25) and will spend nothing else. Tomorrow, I will likely spend nothing. And so on.

As I like to do midmonth, I checked all my statements and made some projections. I try to overestimate expenses and underestimate income sources, such as my tax return, until received.

THE GOOD NEWS:

The reservoir of cash in my bank account is accruing nicely. By next month I'll be holding enough to have a fee-free account.

My line of credit is at an incredibly low rate right now, making debt service fees negligible. It's costing me less than $2.75 in interest per month per thousand dollars. Considering there was a point where I was paying about $6.00 per thousand or more, not bad. Ironically, in an age of low credit availability my credit has never been less expensive. The key will be to knock out the account before the interest rate rebounds.

THE CHALLENGES:

I need all of my benefits processed and delivered before I leave for my life sabbatical, right now about $600 worth. Luckily, it looks like my roommate will be spending the summer in our house and I can leave her an envelope to forward any errant mail.

Since I busted the accounting error, I've been doing an even better job of keeping track of when things are allocated. I've noticed the pension plan has a serious lag some months. I need to ensure everything hits the account that should be in there before I pay it out.

MOTIVATION

If I continue to live within the plans I've made, by September using my first job contract (one year) I will have cleared about $20K in student loans, taken three months off and managed several short term visits. After a 2009 tax return and work in the fall, I could be at zero, giving me the absolute freedom to work anywhere I want because I haven't upgraded my lifestyle at all.

Partly, I want to do this so I can use my degree to do something (even more) fulfilling than what I do right now. Recent inspiration includes the Canadian nurse who works with MSF in the Sudan who was just released. Her career is a reminder those of us with extensive education should be brave in making choices to lead a worthwhile life (and she's pretty darn hot for someone who works in communities without running water or pilates studios).