Chaz & Becca's Financial Plan

Financial Overview (Estimated Monthly)

Based on analysis of the March 3 - April 2, 2025 statement and provided info.

Category Amount Notes
Estimated Income $4,118.70 Based on all deposits 3/03-4/02. Adjust if "ONE@ Insta WALMART" deposits ($1,367.52 total) aren't regular income.
Necessary Expenses (Estimated) ~$2,527 Includes Rent, Utilities, Insurance, Groceries (Est.), Gas (Est.), Student Loan, Min. Debt Pmts (Est.). See budget table for breakdown.
Available Funds (Estimated) ~$1,592 Income minus Estimated Necessary Expenses. Funds for debt payoff, savings, investments, recreation.
Current Checking Balance $2,500.00 User Provided. Good buffer!
Current Crypto Value $500.00 User Provided (SPX6900).
Total Listed Debt $14,287.35 Discover, Plat 1, Plat 2, Credit One, PayPal, Vet, Capital One. Excludes student loan balance.

Debt Payoff Strategy (Avalanche - Prioritized by Balance)

This strategy focuses extra payments on the debt with the highest balance first to potentially save on interest (assuming higher balance correlates with higher interest rate). Provide interest rates for a more precise plan.

  1. Make Minimum Payments: Pay the required minimum on all debts except the target debt (Discover Card). Estimated total minimums (excluding Discover): ~$221 (Plat 1 ~$100, Plat 2 ~$90, CreditOne ~$22, PayPal ~$15, Vet ~$6, CapOne ~$6). Use your actual minimum payment amounts.
  2. Target Debt: Focus extra payments on the Discover Card ($6,351.54).
  3. Extra Payment Amount: Allocate a significant portion of your available funds (~$1,592) towards the Discover Card. Suggested extra payment: $700. (Total Discover Payment = Minimum + $700).
  4. Payoff Order: Once the Discover Card is paid off, take its entire payment amount (minimum + $700) and add it to the minimum payment of the next debt in line (Platinum 1 Card), accelerating its payoff. Continue this process down the list:

Proposed Monthly Budget Plan

This is a starting point. Track your spending and adjust categories as needed.

Category Allocation Notes
Income
Estimated Monthly Income $4,119 Based on 3/03-4/02 deposits.
Necessary Expenses
Rent/Housing $854 YSI Raintree payment.
Utilities $235 Cox ($70) + Evergy ($165).
Insurance $380 Progressive (~$191/mo avg) + Esurance ($93).
Groceries/Household $200 Estimate - track actual spending via Walmart, Sam's, Dillons etc.
Gas/Transportation $126 Estimate based on QT/Petro - track actual spending.
Student Loan $152 Based on statement payments.
Subtotal Necessary Expenses $1,947
Debt Payoff (Avalanche Strategy)
Minimum Payments (Non-Target Debts) $221 Estimated minimums for Plat 1, Plat 2, Credit One, PayPal, Vet, CapOne. Use actual minimums.
Discover Card Minimum Payment ~$190 Estimate (e.g., 3% of balance). Use actual minimum.
Extra Debt Payment (Discover) $700 Accelerates payoff significantly.
Subtotal Debt Payments $1,111 (Using estimated minimums)
Savings & Investments
Savings Contribution $300 Build emergency fund (aim for 3-6 months of necessary expenses: ~$5,841 - $11,682).
Investment Allocation $100 Crypto/Stocks. Start small, increase as debt reduces.
Business Investment $0 Allocate funds here once amount is decided. Adjust other categories if needed.
Discretionary Spending
Recreational Allowance (Total Monthly) $661 Remaining funds ($4119 - $1947 - $1111 - $300 - $100 = $661). For dining out, hobbies, entertainment etc.
Biweekly Allowance (Total) $330.50 $661 / 2
Biweekly Allowance (Per Person) $165.25 $330.50 / 2. Track this spending!
Total Allocation
Total Monthly Allocation $4,119 Matches estimated income.

Opportunities for Cost Cutting (Based on Statement Analysis)

Consider these areas to potentially reduce spending and accelerate financial goals:

Category Amount (Mar 3 - Apr 2) Notes & Suggestions
Dining Out / Restaurants ~$284 (Domestic Est.) + Intl. Food Cooking at home saves money. Allocate dining out funds from the biweekly recreational allowance and stick to it.
Cash Withdrawals / ATM Fees ~$1,285 + $17.50 Fees This is a large amount, especially with international fees. Try to track where cash is spent. Using debit/credit cards more often can improve tracking and potentially reduce ATM fees (especially abroad if using a travel-friendly card).
Subscriptions / Memberships ~$154 (Planet Fit, YMCA, Straight Talk etc.) Regularly review all subscriptions. Cancel any that are not providing value or being used frequently.
Shopping (Non-essential) Variable (e.g., Vape $14, Hobby Lobby $2, Sally Beauty $11) Differentiate between needs and wants before purchasing. Use recreational funds for non-essential shopping. Consider a "waiting period" (e.g., 24 hours) before making unplanned purchases.
Bank Fees $25.00 (Overdraft) + Intl Fees ($63.23) + ATM Fees ($17.50) = $105.73 Maintain a buffer in checking (your $2500 starting balance helps) to avoid overdrafts. Research bank accounts or credit cards with lower foreign transaction fees for future travel. Minimize out-of-network ATM use.

Conclusion & Next Steps

  1. Confirm & Refine Budget: Verify the income estimate. Adjust expense categories based on your typical spending, excluding major travel. Get the exact minimum payments and interest rates for all debts to optimize the payoff plan.
  2. Track Everything: Use a budgeting app or spreadsheet to monitor all spending, especially cash and recreational categories. This is crucial for sticking to the plan.
  3. Regular Check-ins: Review your budget vs. actual spending together at least monthly. Make adjustments as needed for income changes or unexpected expenses.
  4. Emergency Fund Priority: Focus on building your savings to cover 3-6 months of necessary expenses ($1,947/month * 3-6 = ~$5,841 - $11,682).
  5. Define Goals Clearly: Decide on a specific amount and timeline for your business investment goal.

By staying consistent with tracking and adjusting, you can successfully navigate your debt, build savings, and work towards your investment goals!