save some money every month

I’ve been doing quite a bit of budgeting and projection over the last week and it’s been enlightening.

I cancelled cable and my cell phone since I rarely use either of them, and paid off two credit cards this month. I should be able to pay off my last two in May. I’m planning to use the money I used to spend on payments for all these things for savings—shockingly this will be about $300.

So, while I’m not going to be able to save anything substantial this month I’ve laid the groundwork for saving next month and beyond.

Another issue I’ve been considering is how much should I save and how much should I use to pay off debt? I have a car loan and a loan against my retirement that I used for a downpayment on my house that I want to get rid of before I start prepaying my mortgage. Should I save a bit first and then start paying down debt or jump right into the debt? I don’t have an answer for this question yet but I’m pondering.

Saving money will help me feel more secure and help me relax.

I saved my tax return and that will cover my present expenses for 1-2 months. My goal is to have enough money saved to pay my expenses for 6-12 months.

I still need to prioritize this goal with my other financial goals of paying off my (low balance) credit cards, paying extra towards my mortgage to pay it off in 15 years instead of 30 and travelling.