Debt Free Journey

Before January 1st I wasn’t saving HARDLY anything in 401k, to build a home, fully saving anything towards my Son’s future, roth IRA, and the list goes on. December I made a list of WHERE I need to save for the FUTURE.

Then my Fiance and I agreed on starting an online savings account (not easily accessible and the best growing interest rate we could find) towards a home. We have a 5 year plan. Annually together we can Save $23,000 base, and anything extra throw that way. In five years we plan to have $130,000. That will allow us to build our forever home debt free.

But, I have consumer debt. I use to charge and buy stuff, and stuff, and stuff, and stuff and pay it off. That wasn’t hard or unbelievable when I wasn’t saving. Come Savings time I still had old debt and bad habits, that guess what? I can’t pay off so quickly anymore. Each charge was taking 3 times as long to pay down. Now, can I stop all the savings and knock it out? Yep. But I will not. I did this, I’ll get my way out of it. Slowly, or as quickly as possible as I CAN MAKE IT HAPPEN. I actually got it alllll down to $3000 but I car issues and distributed over 2 cars to fix. Now this will show you what I owe and where. This does not include my FIXED living expenses because they cannot be changed and are budgeted out. This is all my variables (I save roughly 15% in my 401k too). I make $50,000 average a year. I plan on being debt free by January 2018. One year from the beginning of my journey.

dumbdebt

I get paid next Friday. With that said I need gas, a tire repair, a renew on tags for a car, and groceries on $400 until Friday.

Not unreachable. Just coasting to pay day. I want to never coast but here I am. I want to build wealth :)! I’ve started to completely follow Dave Ramsey’s plan. I’m an avid listener, but not a true listener, know what I mean? Oh yeah I hear his commonsense teachings DAILY but this girl is doing it her own way. And guess what, my way isn’t working out! Hasn’t been! I get upset I am not seeing results because I’m not listening. Last paycheck I put the $1000 into an emergency savings fund. Step one-complete. Now onto Step two. List all debts and make minimum payments while knocking the smallest to biggest out (snowball effect) until debt free. GET RID OF THE CARDS AND ACQUIRE NO NEW DEBT. I cannot wait until I am out of step two.

It took a long while but my spending habits are horrible. Really just stupid. I made a budget but never stuck to it. I’ve done very well since January because it was compared to better than I was before. I still am not where I need to be.

  • Make budget, every last dollar, and stick to it.
  • Research upcoming vacation location price all activities and restaurants, and find coupons along with work out meal plan and items to bring.  Put in spread sheet.
  • Make two freezer meals per week.
  • Inventory freezers & meal plan for the next 7 days.
  • Make any products needed before buying. When buying stick to generic brands (so hard for some people in my house.)
  • DO NOT GO TO THE STORE OR NURSERIES (it’s garden season) unless dire. Avoid all money spending situations.

I’m trying to teach myself to have an emotional connection to my money and not the stuff I buy with the money. This has been the hardest. Stuff fills an emotion and I get this buzz and high from new things. But I go home and there is so much stuff and the new things become stuff too and I’m upset I have so much. It’s a vicious cycle I’m working on. May the month of May be my month!

2 comments

  1. we all been there; maybe try a decluttering first. it helps with cleaning the air, realizing how much “stuff” we already have, and appreciate everything we have. you can donate, sell, give away, or dump whatever you do not need. this have helped me quite a bit to stop purchasing and start appreciating what I already have. budgeting and having great plans for the money saved is a great motivation to help change the spending habits. some habits are hard to break but they eventually happens. And if I may I would also suggest trying shopping bans – not buying certain items for some time. I started with my beloved books and my first ban was for two months. After that i thought I would return back to buying books every weekend, but it turned out it did not excite me anymore (i have hundred of books at home that I need to read anyhow). all the best with your journey and know hat you are not the only one. I am sure it will turn out great

    Liked by 1 person

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