8 weeks
I started this blog 8 weeks ago. Some Highlights:
- I’ve paid $1,240.00 off on my credit card
- I’ve reined in some out of control spending on lunches (still not perfect, but getting better)
- I’ve worked on a weekend budget with my girlfriend that has worked out well for the most part
- I’ve earned about $140 in sales of old clothes
Some slip-ups:
- I didn’t adjust my budget well for the recent increase in gas prices, I think I’ve figured it out now, but I let the end of April get the better of me
-I paid $60 to play in a kickball league that I knew I’d miss half the games. I like my team and it is fun, but in hindsight, I should have saved the money
- I wanted to start paying rent to my landlord in increments and they agreed it’d be fine. As in half at one paycheck and half at the next. I did not do that for May, which shows that I am either really dumb, or really forgetful (or a mix of both)
Overall if I had to grade myself I’d say C. It is just the start, but a great race has to have a good start, a good middle, and a good end. So time to pick it up the next couple of weeks.
It sucks
I will be honest with everyone, it sucks to talk about debt, look at it, think about it, all of the above. It just sucks. The problem is we probably got there by having too much fun. Drinks one night on a card here, some dvds on the card there, whatever the vice. We probably screwed ourselves to months, and in some cases years of pinching pennies, living on a budget, and one course meals.
It just plain sucks, and even more so for those around you that you care about and you suck into the whole mess. I have a serious girlfriend that found out months into the relationship about my debt. I am ashamed to say, but sometimes I forget that whenever we talk about our future my debt comes along. Whenever we talk about weekend plans, my budget barges in. It all sucks, but don’t worry…
There is almost always a light at the end of the tunnel. There is always hope. The way I figure it, I’ve got 70 years left in me, maybe more with advances in science and medicine. I can pay off all my debt in 12 months give or take a few. It will take a lot of nights staying in, simple meals of lunch meat and bread, maybe some crackers I stole from the salad bar at a restaurant, whatever you have to do to save some money. But once it is done, I will emerge as a new person. Someone who knows how to manage money, think about what they are spending money on, and plan for the future.
Right now I am not that person. I am trying to be, and it has plenty of growing pains, bumps in the road, and stumbles. But I am trying. I’m getting kicks in the butt here and there, and while it helps, it shows I’ve got a lot to learn and more growing up to do.
So my advice when it gets tough, when you check your account and you’re not doing as well as you hoped, or let a night out get away from you, sit yourself down and reexamine yourself and your priorities. No one wants to be in debt forever, and no one wants to be “trying their best” for years and years. People want to be around successful people and people who DO their best.
Just know that everything you are doing now is for a better future…. a better future for you and the ones you love…
Lesson: Every bit adds up and focus for goodness sake
Boy is it easy to let small dollars build up. I know I’ve said a little here and a little there always helps when saving, but it works the other way too. A little here and a little there in spending puts you back at square one.
Luckily I’m not putting it on a credit card, that would be awful. I cut that up thanks to some serious intervention help from my girlfriend. However, I am losing track of my budget. See I have a problem called “tunnel vision.” This means I suck at paying attention to multiple things at once. It is also known as a lame excuse…
I’ve set budgets for the most cash consuming areas of my life: Auto insurance, car payment, gas, groceries, weekend entertainment, rent, clothing, and restaurants. I’ve also set up a payment plan of $600 a month to pay off credit card debt.
Anyway what I noticed happening (again with the help of my girlfriend, which is probably the most obvious sign that she loves me cause she is helping me out with my biggest fault and problem, finances) is I think during a transaction “this keeps me under my grocery budget, or restaurant budget, or whatever else. However, on the side is increasing gas prices. Guess what, it is pushing me over the edge on my gas budget. The result is not much extra cash in my remaining budgets. This is a problem because the top goal is getting rid of my debt.
So how do I fix this. Well for one, focus on all my budgets at once. I’ve mentioned Mint.com and it is very useful. But it is not useful if you don’t log in everyday. It should become a part of the morning routine. Read my news, check the groupon for the day, check Mint.com. This will avoid the “out of sight, out of mind” mentality from taking over, and help focus.
Another option you can consider is this. Right now everything is in my checking account and I use my debit card for it all, so while my gas budget is running out of room I fail to notice it as much. (If I checked Mint everyday then it wouldn’t be a problem). However, if I start my week off with Cash for my day to day expenses of food, gas, and whatever, then I can visually see how much I am spending and have left. Separate the money with envelopes with labels and operate from that. Keep the transfer money in your account (insurance, car payment, credit card, rent, etc.). The problem with this method is that you might lose an envelope, it is harder to see what you are spending it on and tracking that, etc. This stoneage method should only be used it you just can’t be trusted with a card, even a debit card.
So the lesson here is this: Always always always check your bank accounts, budget trackers (in my case Mint.com), or whatever to see where the money is going. A little here and there can add up quickly and before you know it, when you are in a bind like extra high gas prices, then you find yourself pulling money away from things you don’t want to pull away from, like credit card payments.
Gas
So gas prices have gone up a lot lately and for the first time ever I spent over $50 filling up my car the other day. It is a fairly fuel efficient Honda Accord, so I get good mileage. I thought I’d put a link up to good mileage tips. So here you go, time to start saving fuel!
http://www.consumerreports.org/cro/cars/tires-auto-parts/car-maintenance/fuel-economy-save-money-on-gas/overview/index.htm
Groceries
Did some grocery shopping tonight. I actually have a good amount of food left over from my last trip at the beginning of March where I spent about $80. This time though I need to focus on buying food for lunch.
*Tip* - Eating out for lunch is a huge waste of money. Even when it seems cheap, $5 can buy you lunch for most the week at the grocery store… depending on your appetite.
Anyway, I spent $35 dollars buying food for lunch that should get me through 2 weeks, some snacks too I can much on at my desk cause snack shops or snacks anywhere can add up quickly.
I also bought some breakfast foods like oatmeal, and cereal. Along with some veggies, more the frozen kind I can microwave (that is my style) and some salad stuff.
At the end of the day, I have essentially spent $115 dollars on groceries since the start of March, and it will probably last till mid to late April. Lesson here, buy food and make it yourself. Don’t go out to eat all the time and you will save plenty of money.
Another Trip…
To Plato’s Closet and this time I left with $20 cash. When you’re balling on a budget, and actually paying attention to how much you are spending, $20 is a lot. Funny thing is, they took a couple of shirts I bought from 6dollarshirts.com. Some cheap shirts turned into some laughs when I had them, and then some dollars after. Not bad
Cleaning House
Boy do have I accumulated a lot of crap. I mean it makes sense, I’d hate to think I drank and ate myself into thousands of dollars of debt. So I have started to post some items to eBay. Mostly clothes that are new, but I don’t wear much. It is shocking the number of shirts I have bought thinking, “Ha, that is funny. I need to own it now.” (I really don’t need to own it).
Anyway, we will see how much money I can get out of my crap, er, I mean clothes.
I think it will also be nice to not have so much crap…. I guess freeing myself of debt will also contribute to freeing myself of some other things that weigh me down
Selling Goods
I sold a handful of clothes to Plato’s Closet the other day for $20. They were clothes I wasn’t wearing anymore or wouldn’t wear again. So I sold them and got $20. Instead of spending that money on new clothes, or treating myself to something, I used it to pay off some more on my credit card. I mean I spent the money for those clothes already, so if I can get some money back for them, I might as well use to pay back the money I’ve already spent.
$20 may not seem like much when talking about a couple thousand dollars of debt, but it all really adds up. How do you think I ended up with $7,000 in credit card debt in the first place? It wasn’t a big purchase, it all just added up. $20 here, $15 there, and before you knew it, BLAMO debt! So now it is time to turn the tables, $20 here, $15 there, and before you know it, BLAMO no debt!
They Know…
It is possible my credit card company has some sort of digital sensor and transmitter on all of their credit cards that goes off when one is cut up, or it was just time for a new card. Either way I opened up the mail today and from my credit card company was a, wait for, brand new credit card. It was shiny, and had a cool design. My name looked real official and in bright silver lettering. To celebrate its arrival I grabbed a pair of scissors and cut it up in multiple pieces! Hip Hip Hooray!
I’m committed to doing this, and my credit card company can send me a new one every week, but I’ll cut it up. I think it’ll feel better to save money and have no debt, than it will be to buy stuff.
Credit Card
I cut up my credit card today. It was tough, but after I did it I felt good. I should have done this a long time ago when I knew I had a debt problem and needed to work on it. Too many times I’d get myself in a tight spot and think, eh just put it on your card and then when you get paid you can pay off a little more, but I never did pay off a little more. So the result was more debt, more interest, and no change in my bag habits.
As I rationalized cutting the card to myself, which really someone with $7,000 debt on a credit card should not have to do, I said, “A crack head cannot quit crack if he is still living in a crack house.”
Now I can be focused on paying off the debt.
