Monday, March 28

Personal Finance Fail

Full disclosure: My wallet has been like a leaky faucet the last couple weeks. It all started with the pivotal decision to splurge on $8 nailpolish at Penn Station and it's been downhill ever since. There hasn't been any major flooding, just small insignificant purchases that make you go "WTF" at the end of the month when the credit card statement comes. Or in my case, "WTF" in the middle of the month when I checked my balance. I hate to admit it but I've been totally reckless. As much as I love the sequin tank top ($16), new gym bag ($29), and the anti-wrinkle cream ($11)-- I didn't need any of them.

On what I thought was an unrelated note I have been struggling with what to do with with an extra $140 I have in my budget from no longer having a credit card payment. To explain, let me go back a few steps. My monthly credit card payment was $500 which means, since February I've had $500/month "extra". My first plan was to put a chunk of that into savings and the rest towards my car payment, to pay it off early. Then,  SSF proposed, and I had a wedding to save for- among other things. From there, the $500 turned into this:

$77/month-Car insurance (so I have it when my premium comes due)
$33/month- City Taxes (we get the equivalent of a city tax bill each year, so I wanted to save half)
$100/month- Wedding
$150/month- Emergency Savings

Total: $360/month.

So I've been trying to decide between two options:
1. Add the remaining $140 to my wedding savings of $100/month.
2. Start making payments on my student loans and/or make extra payments on my car.

Now what does this have to do with the leaky spending? Well I'm pretty sure had I already decided where the $140 should go, I wouldn't be spending so freely right now.

So help plug the leak. What do you think I should do? Save for the wedding or pay off debt?

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