I’d set some goals to achieve by September 2008 (the anniversary of my starting my debt diet):
- 4 of my 7 Credit Card balances paid off in full
- Personal Loan under $20,000
- Emergency Fund funded to $1,000
- Retirement Savings at 3% personal contributions
- Total outstanding debt under $35,000
I've realised now that these are pretty ambitious targets for September 2008, what with moving expenses etc, but a girl has to have a goal, and if I can nail all of these by December 2008, I’ll be thrilled.
I’m also looking at that retirement savings line. I already contribute 1%, but that extra 2 % may actually go into a managed fund instead of Super, or into a First Home Saver Account if the government kicks the scheme off this year instead.
From January 2008, I’m also going to start tracking and reporting (in my Ugly Truth posts) the amount of debt interest I’m paying out. I've avoided seeing the real cost of my financial choices to date, and it’s time I face up to the impact.
If I’m sticking to my plan, the number will go down every month as the balances go down, which will provide extra motivation.