A long way to go BUT . . .

Avatar for colomom99
iVillage Member
Registered: 03-28-2003
A long way to go BUT . . .
5
Tue, 11-22-2005 - 12:18pm

I have been posting/whining on this board for about a year and although I still overspend and have WAY too much cc debt I can report as the year ends I have also made some real progress.

The biggest change is that I am now saving. We did a house refinance a few weeks ago and rolled our old variable rate line of credit, a couple credit cards and our personal line of credit into a 30-year fixed. Through snowflaking, the refi and transferring balances we are now down to three credit card bills each month (yes, they are whoppers but they are fixed low interest and we don't use them so everything just goes to the balance). It is also much easier to see where we stand. We have dropped from close to $50K in non house debt to a little over $30K. That is still a very painful number but it IS going down.

Still, as I said, the coolest thing is what is happening to savings. I recently opened a 401K at work. I got a 3 percent raise and opened the account for 3 percent contribution. The company does a 1.5 percent match (pathetic) but that means I am saving 4.5 percent of my salary and never feeling it because my paycheck stays exactly what it was before the raise. I also have started building my 3 kids' savings accounts by contributing $5 a week. A tiny amount but already they EACH have $300 in their accounts. In addition after the disaster of last Christmas I opened a Christmas Club in January for $10 a week. This year I have $500 CASH to buy presents. And then there's my personal savings account. I contribute $35 a week from my check and throw every mileage reimbursement check or rebate check or any other "found" money in it. By the end of the year I will have about $1,500. The exciting thing about that is my dream has long been to adopt from China. The first installment in fees is $2,000. If I can show my husband we already have that in savings he will be much more willing.

Some people might think it would've been better to put all of that money towards our still staggering credit card debt but I have tried that in the past and it just doen't work for me. I end up still having debt and no savings. At least this way I can feel like I've really accomplished something. I apparently need the "forced" savings plans. Believe me I'm not bragging. I'm very ashamed of my poor money skills but I DO feel hopeful for the first time in a long time. By just taking tiny amounts here and there and stashing away into different accounts I am amazed how proud it makes me feel.

Jenny

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Tue, 11-22-2005 - 12:25pm

Jenny,
congrats! Sounds like everything is going well for you.

MYM

iVillage Member
Registered: 07-21-2003
Tue, 11-22-2005 - 3:28pm

Wonderful!!! Sounds like you are on the road to recovery!!! On December 1st, I am going to open a separate savings account and have my small weekly paycheck directly deposited ($166 per week). My goal is to build my savings while sustaining our family on my husbands paychecks. He is paid $2100.00 on the 1ST and 15th of each month that is it!!!! We have way too much debt in cc's BUT...our minivan will be paid off in only 2 years! I am going to see how much of the small junk debt I can pay off before the end of the year.

I decided to close my wedding and event planning business as it literally SUCKED the money out of us!!! I will work for someone else until I find something that is a viable business and works for me.

I am working smarter now, I will not rest until this debt is paid. We are in our 30's and life should not be this way!!!!

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Tue, 11-22-2005 - 4:19pm
Congratulations!!!

Becky mom to


Carolyn (6th), Aaron (3rd), Kyle (Kindie), Luke (2)


CL to

iVillage Member
Registered: 12-12-2004
Tue, 11-22-2005 - 8:22pm
Hi, Jenny. Just want to say congrats. It is great you are doing the 401K thing at work. I managed to save $17K this year(!), instead of doing bad things with it. Isnt it great to be out of that variable interest nightmare?! You are on the right track, and an inspiration! WHiz.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 11-23-2005 - 11:28am

Jenny - sounds like tremendous progress to me.

All my best,
Danni