January is my third consecutive atypical month, and financially things are looking messy. I’m writing this post to come up with a way to better meet my savings goals and get myself back on track. Just a quick month-by-month overview of how I got in this situation:

• November – purchased a condo which resulted in expenses associated with buying a place, moving and settling in.
• December – still had expenses associated with settling in and purchased holiday gifts.
• January – went on vacation and I’m still getting settled.

I’ve basically spent too much and my credit card balances are higher than I’d like. My anticipated income for the remainder of the month is $500 (this is a crude estimate). I’ll be roughly $500 short of paying off all my credit cards…oops.

Updates/Check-in Frequency

I need to start doing weekly updates/check-ins to make sure I am on track. I may not do this formally on my blog, but I do need to assess my financial standing more frequently than once a month.

Saving and Checking Accounts

I have the following savings/checking accounts to meet my various savings goals. My next net worth update will reflect these accounts:

1. Regular Checking Account – $500/month towards monthly expenses
2. Amazon Gift Card Balance – $100/month for Amazon purchases
3. Emergency Fund – $50-$100/month for emergency
4. Irregular Bills (sink fund) – $55/month towards non-monthly bills
5. Short-Term Savings – $75/month
   • Fund #1: local transportation sink fund (ex. ubers, taxis)
   • Fund #2: Eating out sink fund
   • Fund #3:  Home Maintenance sink fund (bulbs, batteries, minor improvements)
   • Fund #4: Travel fund ($500 est.)
6. Long-Term Savings – $50/month
   • Goal #1: laptop ($1,000 est.)
   • Goal #2: Hardwood Floors ($2,000 est)
7. Mortgage Holding- $X,XXX/month towards mortgage payment

One new accounting strategy is to keep track of my Amazon Gift Card Balance. I need to start treating this as another asset due to the frequency in which I use Amazon and my desire to earn credit card reward points. If I treat my Amazon Gift Card Balance like all other accounts, I should be less inclined to blow through the balance as I usually do.

Note that I still am not disclosing how much my mortgage payments are. But I do set aside my mortgage payments in a separate account. It helps me mentally avoid considering the use of a sizable sum of money designated for my mortgage when making financial decisions.

Credit Card Repayment Plan

My current credit card balances and my repayment plan is detailed below:

• Credit Cards #1-4: $400
  • Will pay off with next paycheck
• Credit Card 5: $600
  • Lowest priority: 0% APR with incoming $200 reward
  • January Payment: $150 ($100 from income, $50 from “Irregular Bills” Sink Fund )
  • February – November Payments $40/month (tentative)
    • February Additional Payment: $40 (for prepaid internet)
    • March Additional Payment: $40 (for prepaid internet)

Credit Card Rewards

1. My 0% APR credit card (Credit Card #5) has a $200 reward incoming for spending $1,000 in the first 3 months. I opened this card to insure my new phone at no (explicit) cost.
2. I am starting off the year with 30,703 Chase Sapphire Reward Points.
   • I need to earn ~8,333 points (or $125 travel credit equivalent) to break even. Though in actuality, additional card perks, such as airport lounge access, lower the break even point.
3. Chase Freedom – 5% categories include phone/internet, gas stations, & Android pay. I should purchase and possibly prepay for:
   • Groceries
   • Gift cards (Amazon, Grocery stores etc)
   • Internet (prepay in March)
4. I need to do better when using my Chase Cards in order to increase the points I earn. For example, I should:
   • Use Chase Freedom only on 5% categories
   • Use Chase Sapphire on dining and travel expenses
   • Use Chase Freedom Unlimited on all other purchases