Firstly, I am so glad to have found this website. It has completely changed my mindset and caused me to examine my expenses over the period of a month - I could not believe what I found.
In the month of Feb. 2014, my total expenditure was a whopping $5,200...$3500 of which had nothing to do with living expenses ($1100 in ATM withdrawls, $800+ dining out, etc.). I am ashamed of this, and am taking steps to make sure that it NEVER gets near that point again.
My question involves the order in which to go about paying debt/saving.
I have a bit of debt, including student loans, that I have been chipping away at. I also have literally not saved a dime since I began my career a couple of years ago.
$7000 (18% interest rate) in credit card debt and $20000 (6.5% interest rate) in remaining student loan debt.
I have the option of a 403(b) at work, but otherwise no savings account.
I am planning to SEVERELY limit my spending to the point where at least 50% of my monthly income ($4400 monthly income after taxes) will be saved.
Should I start immediately contributing to my 403(b), or should I use all of the money to pay the debt FIRST, and then start the contributions?
I am afraid to make a move in either direction, being new to the frugality thing, so I am just frozen in one spot.
One thing is for certain, I am going to examine each and every dime that leaves my hand from now on.