At the end of 2009 I acknowledged that I have a spending problem, and after acknowledgment came some of the first steps to achieve a debt-free life. First things first, I cut up my credit cards, and today I finally paid the last two cards off! I had $2600 in credit card debt this morning, and after applying my tax returns I have $0 in credit card debt. Because I no longer have to make monthly payments, I have an extra $143 per month! The extra money is going towards other debt (I have about one year left for payments on my car, and student loans). Even though I haven't accomplished my initial goal of eradicating all of my debt, I am so proud of myself. I am one step closer to living without shackles to distant numbers.
At the end of 2009 I also decided that I wasn't going to take out any more student loans for my undergraduate degree, and I haven't. I have not borrowed a single penny for school. I have paid for each credit hour on my own (spare a sweet gift from the amazing Bentley, who paid 3/4 of my fall tuition), and it has made me appreciate school so much more!
I can finally see a light at the end of the debt tunnel, hoorah!
Showing posts with label Credit Cards. Show all posts
Showing posts with label Credit Cards. Show all posts
Friday, March 25, 2011
Friday, November 6, 2009
Money, Money, Money
I have a spending problem.
When I go out with friends, I like to pay for our activities. It makes me feel happy when I can take my friends out to dinner, or when I can surprise someone with a gift. There are many magnificent sensations in this world, but the look of surprise and happiness on the face of someone else is priceless to me, and I dare say that I'm addicted to the way it makes me feel. I guess it is safe to say that I enjoy taking care of people, and buying someone dinner is an easy form of this. With that said, I spend way too much money on people. I will spend money that I don't have to do something nice for my friends, and that has created a bit of a financial conundrum for myself. I didn't realize that it was a problem until Ben and I were laying on the hippie couch and he told me that it was ridiculous that I spent over two hundred dollars on our friend's birthday. He was the first person to actually call it to my attention, and because of him (and Camrann) I have started a budget.
I'm embarking on a budget process that should render me debt free within a year. This plan is courtesy of Dave Ramsey and his book The Total Money Makeover. Camrann is the person that suggested the book initially, but I ignored his suggestion until recently. I shouldn't have ignored him, Cam is one of the most brilliant people that I know and I trust his judgment more than my own (that is the last time I don't immediately read one of his suggestions.) This book has caused me to view money in a completely revolutionized fashion. This new budget is mentally challenging for me. I am used to paying for other people, and I'm also used to spending money on whatever it is that I want-I can't do that anymore Now, my money is already spent before I get my paycheck, and I have cut up my credit cards. When I want something, I am forced to peer into my wallet and stare at the meager amount of cold hard cash that is allotted to my entertainment spending. Let me tell you, my entertainment stipend is now a mere one quarter of what it used to be. I am stretching "fun money" that I would spend in three days so that it lasts me two weeks. I will do this, because I've set my mind to it, but I'm pretty sure I'm going to go crazy!!!!!
When I go out with friends, I like to pay for our activities. It makes me feel happy when I can take my friends out to dinner, or when I can surprise someone with a gift. There are many magnificent sensations in this world, but the look of surprise and happiness on the face of someone else is priceless to me, and I dare say that I'm addicted to the way it makes me feel. I guess it is safe to say that I enjoy taking care of people, and buying someone dinner is an easy form of this. With that said, I spend way too much money on people. I will spend money that I don't have to do something nice for my friends, and that has created a bit of a financial conundrum for myself. I didn't realize that it was a problem until Ben and I were laying on the hippie couch and he told me that it was ridiculous that I spent over two hundred dollars on our friend's birthday. He was the first person to actually call it to my attention, and because of him (and Camrann) I have started a budget.
I'm embarking on a budget process that should render me debt free within a year. This plan is courtesy of Dave Ramsey and his book The Total Money Makeover. Camrann is the person that suggested the book initially, but I ignored his suggestion until recently. I shouldn't have ignored him, Cam is one of the most brilliant people that I know and I trust his judgment more than my own (that is the last time I don't immediately read one of his suggestions.) This book has caused me to view money in a completely revolutionized fashion. This new budget is mentally challenging for me. I am used to paying for other people, and I'm also used to spending money on whatever it is that I want-I can't do that anymore Now, my money is already spent before I get my paycheck, and I have cut up my credit cards. When I want something, I am forced to peer into my wallet and stare at the meager amount of cold hard cash that is allotted to my entertainment spending. Let me tell you, my entertainment stipend is now a mere one quarter of what it used to be. I am stretching "fun money" that I would spend in three days so that it lasts me two weeks. I will do this, because I've set my mind to it, but I'm pretty sure I'm going to go crazy!!!!!
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