How Julie increased her income by $826/month
I’ve been so excited to post this update from Julie. As you know, she is working towards her BIG goal of quitting her 9-5 and travelling around the world by July 2019.
This is Julie’s story in real time. The reason I’m writing this and Julie is willing to share this with you is to show you: you are not stuck. You can design your life around how you want to live, what you want to experience and what you value. Anything you can dream of already exists for you. It’s time to do the work and get it.
Because of a friend’s wedding in Aug 2019, Julie’s timeline is extended to leave for her trip in September 2019. On the upside, it’s less expensive to buy flights for September (as opposed to July!) and she has another 2 months to save. Overall, YAY!
Here are Julie’s current details:
Thanks to her hard work this summer, Julie’s current cashflow situation is dialed. She doesn’t have any extraneous fixed costs. She ended her $376 / month gym pass and now everything Julie pays for monthly is necessary, i.e. rent, internet, cell phone, car loan.
Julie’s plan is to deal with her debt ASAP!
She currently has a $4000 line of credit at 7.9% interest
Car loan is $8525 at 0% interest (Seems like a good deal but everyone’s gotta make a buck. The loan is not free. The “interest” or benefit to the dealer is built into the price that the dealer agrees to sell to you.)
So much progress!
Here are all of the things Julie did in August and September to get her bills under control:
Cancelled $81/month line of credit insurance (read more about lines of credit here)
Called Telus and reduced her monthly internet charge to a competitive rate of $60/month.
Analyzed spending in August and September. Saw places that she’s over spending and where it’s possible to cut back. (Let me know if you want me to send you the template!)
Cut out all extraneous monthly bills to better manage monthly cash flow (including eliminating her very expensive gym bill! YAY!)
Told her friends and family about travel plans!
Found a second job, generating around $100-$150 every weekend.
With all of this hard work, Julie is making $826 more per month (saving $50 on internet, $400 on her second job, $376 on the gym). All of that cash will go towards her line of credit, and then right into her travel savings fund.
Goals for October
Over the past few months, Julie has completely committed to her goal. Here’s what’s next for October:
Based on Julie’s spending habits and cash flow, we decided that she can spend $1500 after fixed costs per month. That means she saves $1000 to be applied to her line of credit.
Julie is going to be conscious about every penny she spends. I want her to focus on really enjoying the things she buys AND spending less.
It’s time to get creative with her food budget. In August, she spent $881 on food and in September she spent $441. The huge variation is because of summer activities and travel. That said, being more conscious of food spending, limiting eating out and planning your meals will go a long way toward reducing the amount you spend.
A big mind shift this month is going to be committing to taking advantage of her credit card and following the payment / billing cycle. Julie’s card’s billing cycle is from September 5 – October 5. Her bill will be available online on October 6. Her payment will be due on October 21.
A few days before October 21, Julie will pay for her spending between September 5 – October 5. Everything that’s left in her bank account can be funneled onto her line of credit, towards the goal of reaching $0 by December 5! When she is paid on October 30th, she will have cash in her account for rent.
Practicing managing cashflow according to billing cycles is a way to get really clear on how much money you have to spend, save and invest every month. Read more about cash flow here and credit cards here.
Julie has made amazing progress to date and I can’t wait to see what she accomplishes this month. That line of credit is going to be long gone in December so she can start looking for flights early in the new year. Go Julie go!
What big goals are you chasing right now? Let us know!