Previously Sam's accounts looked like this:
Main account: $411.02
Cash in pocket: $32
Credit card balance: $800
That was on Saturday last week. So there have been 4 work days since then and Sam probably needed some more groceries since then, so we'll say he spent $55 on groceries (I've been estimating Sam's grocery bill based on what we have been spending and taking off a little bit because Sam is only feeding one mouth and we are feeding two, and we brown bag lunches the majority of the time). Sam continues to spend $3 every work day on his coffee and muffin and he also bought lunch everyday for a total of $30 just on lunch and $12 on the coffee and muffin combo.
So obviously Sam had to make another trip to the bank machine. Once again, Sam decided to use the cash machine closest to his office but that isn't his bank's bank machine so he pays and immediate $1.50 charge on that and his bank also charges him $1.50 for the privilege of accessing his own money (but that charge won't come out until the end of the month. Which reminds me, I forgot to add that in to the last update. So in February Sam went to the bank machine 2 times, costing him $3 in bank fees). So that cost Sam $61.50 today and an additional $1.50 at the end of the month.
Ok, back to the main point of this post, Sam got paid today. To recap: Sam makes $58,000 a year and gets 26 bi-weekly pay cheques. His before-deduction pay is $2230. He pays about 485.25 in taxes, 103.76 in federal pension (CPP) and 41.72 in employment insurance (EI) leaving his net pay at $1600.04. This would leave Sam's main account at $411.02 - $55 - $3 - $61.50 + $1600.04 = $1891.56.
I have left out a few expenses from Sam's regular expenses. I'm not totally sure how condos work with respect to heating bills and hydro bills but I think that some places pay for part of those expenses out of the condo fees and some don't. I will assume that Sam's condo doesn't. So that means that Sam will have to pay hydro bills and also heating bills. In order to make things easy for me I will assume that Sam uses natural gas for heating since I can then use my natural gas bill as a basis for what Sam's should be. The other two expenses I have neglected are Sam's cable bill and Sam's phone bill. I will also say that Sam gets his internet connection through DSL so that will add about $50/month to that bill. I think I will also give Sam a cell phone that will cost him about $50/month.
Ok, so now we have 5 more regular bills. To keep things easier for me I will say these new bills (hydro/water, cable, natural gas, phone/internet and cell phone) are all due on the 15th of the month. So Sam has the amounts for all of these bills for this month already and will pay them next week. Hydro/water is $95, cable is $70 (Sam has the UltimateTV pack from Rogers and is renting a cable box), phone/internet is $100 and cell phone is $50. So Sam's total bill on the 15th will be $315 for those expenses.
And finally, Sam had to get more gas for his car over the weekend. The price for gas is about 89 cents now and again Sam put 45 litres into his tank for a total cost of $40.05, bringing his main account down to $1851.51.
Sam has a real opportunity here. He now has more in his main account than he needs for expenses he needs to pay before his next pay day and
he has enough in his main account to pay off his credit card balance completely while still having money left over to cover his other expenses. So Sam will make a $800 payment to his credit card and do a little happy dance because just by moving to paying cash for everything he was able to eliminate $2000 of credit card debt in less than two months. That will leave Sam's main account at $1151.51. Of course, there will be some interest outstanding for the 9 days that Sam had an $800 balance but we will deal with that at the end of the month.
Sam's final numbers look like this then:
Main account: $1151.51
Cash in pocket: $50 ($32 - $30 - $12 + 60)
Credit Card balance: $0
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