A Brand New Budget For a Brand New Year!

Since the end of the year is wrapping up, I decided to review my budget and see if anything can be changed for the new upcoming year. I am put together a new budget which I hope will accommodate my lifestyle. The new figures are as follows:

Fixed Expenses:
Student Loan Payment - $856.00.

• My actual payment has now decreased to $716.00. When I first started paying back my student loans in 2006 the payment was $809.00. However, with the help of extra payment along the way, my payment is now $716.00. That being said, I am intending on paying $856.00 a month until I have paid $10,000 in student loan payments for the year (around October). Then I am going to take the extra $135.00 a month and put it into either my new sidebar Home Down Payment Fund or start a new sidebar for a Car Fund.

Rent - $425.00

• Currently my half of the rent is $425.00. That is fairly cheap for where I live. However, my lease runs up in April and I was thinking about moving closer to work. The prices closer to work for something comparable are about twice as much; thus, I am starting a Home Down Payment Fund to purchase my first home. So, I am not quite sure whether I will move closer to work or continue to pump money into my Home Down Payment Fund and make the commute.

Utilities - $100.00

• This includes Electricity, Gas, Water, Sewer, and Trash Pickup.

Nexflix - $18.18

Variable Expenses:

Vet -$30.00

Groceries - $160.00

Eating Out - $120.00

Entertainment - $200.00

Shopping - $200.00

Gas - $130.00

Prescriptions - $20.00

Savings - $800.00

• Gift Fund - $40.00
• Travel Fund - $100.00
• Home Down Payment Fund - $460.00
• Taxes - $200.00

Total Budget - $3,000.00

I will try to compare my monthly budget at the end of every month to determine how I did for that month.

Anyone that has any comments on whether applying extra payments to my student loan vs. saving for a house is a better option. At the moment, I am trying to accomplish both. Should I throw all my extra money at the down payment and just continue to pay the minimum on my student loans? It just really upsets me that they are for 25 years and I will be over 50 and still paying student loans. AGHHH.

I haven't written in a few days because I am in a bad mindset financially. I have been contemplating buying a house, but determined that my student loans are so outrageous that it scares me to take out any more money. I currently have just over $105,000 in student loans and have 23 more years of payments. No bank or company will consolidate my private student loans which are at a variable interest rate. While the market is down, so is the interest rate, but as soon as the ecomony is booming again my rates will skyrocket. I know there is tons of advice out there stating that you should not repay your student loans faster than necessary,but I cannot stand it. At this rate, I will be over 50 before they are paid off and that is unacceptable to me. Thus, I believe that I am going to take next year and aggressively pay back my student loans. I understand that it is still going to take several years of aggressive payments before it is paid off, but I cannot stand it hanging over my head. At least with a house, you have something to show for it.