You need to ask yourself a few questions: - How much are the groceries going to take out of that $1400 left over each month? - What about other ongoing expenses like clothing or school supplies? Do you have a dedicated category for these expenses? - Do you have money set aside for any renovations or unexpected issues with the house? - How long are you going to be paying off that $650 per month debt for? Once that is gone, it's $650 freed up for other expenses / savings.
4/25/13 at 6:22am