New here - kind of - Intro (long)
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| Tue, 10-25-2005 - 2:36pm |
Hi everyone! I am new here (kind of). Used to post under a different name but I am rejoining after many, many months under a different name.
To help myself, I have even started a personal blog that none of my family or friends know, just to get myself moving and make myself accountable. Here is my newest post there and this is a good intro to how I am feeling.
Total Credit Card Debt: $20,070.07
Budgets are for sissies. A book I am reading said that. They make a good point - if budgets really worked, then so many people would not be in debt. (If it works for you, please don't take offense - I am just trying to make a point - mostly to myself!) It is not about saving money, but about controlling your spending . I feel we have a pretty good handle on controlling our spending - it comes down to paying down the credit cards, which we are doing. I just started this blog, I think since the beginning of the year it has gone down about $1,000. Not a lot, but at least it's gone down $1,000. I am coming into $1,000 commission this month - well it will be about $900 with taxes - I am taking out $50 to treat us to dinner (been awhile), rest going to the Home Depot and Best Buy credit cards, along with an additional $350 I should be getting in commission. At the end of November, I have another $322 coming my way. All 'unexpected' funds need to go to credit cards. This means that by the end of the year, I will have paid $1522 down in debt. That's awesome.
It is reassuring to know that by the end of the year I will have so much more paid off. My goal is to not put things on credit anymore. There are things I want so badly, but if it is a WANT I have to be able to pay cash. Simple as that. The only way to get out of debt, is to stop putting ourselves in. We have another 2 years before the vehicle is paid. Unfortunately by that time, we probably will need another one :-( But this time we will make a better decision (including NOT going through the dealership for financing!)
Everytime I want to spend unnecessarily, I have to come on here and post or see progress. When I want to spend I need to 'snowflake' it - if what I want to buy is $25, I need to send $25 to a credit card instead. I need to keep track of my urges and write down the price. Then send the money.
Starting Christmas shopping early has been awesome. I started in September and I am almost done. Some may think what I am doing is dangerous, but I have 4 presents left and I have kept up my end of the deal thus far. I am using my credit card (yes I said it) with cashback rewards. I am using that and then immediately sending a payment in for what I just spent. That way I earn money on my purchases. Nothing for Christmas is staying on plastic - nothing. Even for spouse gifts, we each get $100 to spend. That's it. Typically we would pick one large item (like furniture or a TV) and then put that on plastic and that would be our 'gift to each other.' Not this year. Each check I am taking out $50. So on the 1st of November I take out the next $50 - hubby now has his $100 he can spend. Then by December 1 I can have my $100 to buy his gift.
I am proud of myself, of us. Even though I get into ruts where I freak out about money - until I see that balance under $15,000; under $10,000; under $5,000; at $0 - I will probably always worry. I don't want to ever feel like this again money-wise. I learned my lesson, that's for certain.

Well Back!
I just want to say that I do understand how much of a pain budgeting is, but I think your philosophy is a little wrong.
I started paying down about $17k worth of credit card debt in June. We strictly followed a budget until Sept. Since then my snowflakes have been nothing compared to what they were when we actually named our money before we actually got it.
So I think at the very least you should do a basic budget too make sure you have the income to cover your needs and commit to only spending a certain dollar figure on certain things, for example, $200 a month on groceries, and $75 on dining out, and then only buy needs instead of wants. Sort of like a modified budget.
Shannon
Shannon
No, no, no. I don't want to get off on a bad foot here. What I said in my message was I was only trying to make a point to myself - that point was this and this alone:
I NEED TO CONTROL MY SPENDING
I was not saying budgets don't work (I specifically put in quotes they may work for some people). We all 'budget' in some sense. Was not saying that at all. I was simply stating that for a lot of people (like me) we put ourselves into debt because of uncontrollable spending. And the philosophy is that of Bill & Mary Toohey in their book "The Average Family's Guide to Financial Freedom."
I agree. I know that written budgets don't work for everyone, but they sure work for me. LOL! :-D I joined this group with $33K+ in debt last December, and I am now down to $21,868. Has it been hard to stick to my budget? You betcha! LOL! :-D I've done without, I've stitched holes in clothes, including socks and underwear. I've eaten so much spaghetti, it should be coming out my ears by now. LOL! :-D But my budget worked. Of course, I'm also the type of person who has to write everything down or I'll forget it. I'd lose my head if it wasn't attached. LOL! :-D
Pat :-D
I understand what you mean about budgets being useless..... I have had one for years, but the numbers never added up in real life the way there were supposed to on paper. I too find that the key is controlling my spending. It doesn't matter what is says on paper if I am spending more than that on impulse, and because I want it.
Getting my spending under control was key for me as well. I also live by the if I can't pay cash for it, I don't buy it rule, and this has helped control the wants!
A have found budget useful in terms of saving, and I budget a certain amount of money to go into our emergency fund and this has been helpful to me.
To me there is a big difference between havign a budget on paper, and actually applying that to the way I live my life...
I totally agree. I have tried strict budgeting but over time it's become more of an "outline".
I do earmark money way ahead of time based on my "Bills Due" speadsheet and income. I'm now on a cash only basis so I get a certain amount of cash each week for food, gas, etc and I know that is it - if that cash runs out I'm s.o.l. so I have to think and plan purchases but I don't have set amount for each category, I just know my limits.
So far this is working better for me than anything else has and I'm making progress. Like with most things I believe you have to find what works for you and it does take trial and error to get there.
Welcome back!
I love your new username!
Becky
CL of 4th, 5th & 6th grade Scoliosis
Your not going to get on a bad foot with me. I have tried several different approaches in the last few months. A modified budget works well for us. I can't stand the structure of writing down everything I spend, although it is eye-opening to do for a few months.
So at the very least if you are not doing a full budget, I would still put a cap on certain things you buy that could get out of hand. Such as groceries, dining out, clothing... Whatever your budget buster is.
SHannon
Shannon
Danni
cl-phocid, Debt Support Group
Snowflaking 2005 - Join Us!
All my best,
Danni
welcome back.
MYM