Teleidoscope

Fri, Apr 18, 2008

Run Rate

Posted at 10:23 pm MDT to Miscellaneous

This week was a pay week and I also received my tax refunds, so I have been paying bills and paying down credit balances. I also put a bit more than half of the tax refund into savings: my non-retirement balances are still a little lower than I like because of all the big expenses for the house and truck last year. I've only got a bit more than 2 months take-home pay in regular, non-retirement savings accounts.

My basic monthly run rate -- monthly bills, food, minimum payents on the cards, and setting aside something for occasional expenses like property taxes and insurance -- is currently about one paycheck per month. I get two paychecks per month, most months. Three paychecks twice a year (this is a three paycheck month). So I have about one paycheck per month to pay off stuff, buy large items and make serious donations to charity.

So my 2+ months in savings is more than 4 months minimum run-rate.

My credit limits on my credit cards are ridiculously high (nearly equal to my total take home pay for last year), but my balances and interest rates aren't too bad. Actually, by the end of this month I will have only one card with a carried over balance. That balance is fairly high, but the interest rate on that card is decent, and once the other cards are paid off the balance should drop quickly. It will help when I get reimbursed for some money from my company. My available credit is so many times my run rate that it is silly.

I should have that last credit card paid off in a few months. Then that extra paycheck per month will go into savings to save for a new truck. I've hardly driven the old truck this winter, so it should last a while yet, and I'm planning to pay cash for my next vehicle.

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