So.
I'm trying to work on being less pessimistic.
But then again, what's the point?
HA! That's funny. I came up with that last night and it's still making me laugh. I'm so glad I have myself to entertain myself.
Anyway, it's true. I just have negative feelings about my negative feelings. Y'know? I think I'm typically upbeat and hopeful. But then there are just some elements of my life that really bring out those deep insecurities. I guess we're all that way, but I'd like to bring that positive, "sunshiney" attitude into my whole life. Let me know if you have any tips.
The real reason I'm writing is to discuss my budget. I've put myself on a debt diet and am quickly working my way to pay off my credit card.
Typically I'm one of those really annoying people who is extremely diligent about money. I actively invest in my retirement and savings, I pay off my credit cards right away, and I allow myself a lot of "cushion" for those just-in-case moments. But last year, I got into a bit of a bind. "How could that be?" you ask. I was going to grad school for free for cryin' out loud! But my living expenses in New York and a few other unexpected payments increased my credit card well above where it had ever been. YIKES! Not too much, but by my personal standards, lots.
For the past few months I've been paying and paying and paying. And although it's decreased a lot, I still plateau at a certain amount. Emergencies such as cats falling out windows, dogs with UTIs, and cars with problems added to the burden. So a few weeks ago I decided enough was enough. I wanted to take my life back and kick my credit card balance to the curb!
I've been really lucky. Since it's right around the new year and lots of people are making resolutions to pay off debts, lots of tv shows and articles are spewing money-saving tips. And I'm eating them up! Plus, my church is doing a series of workshops on debt and personal finance. The stars are aligned in my favor.
Here's what I'm doing:
1. I get paid every week. And since my hours are irregular, I figure at this point I'm not living month-to-month but instead, week-to-week. So I made a list of my monthly bills, divided them by four, and set those numbers aside as "necessary payments."
2. Then I deduct a huge chunk for my debt. For now, I'm paying my credit card every week instead of once a month. This way, I don't trick myself by seeing a huge amount in my bank account and thinking I have more than I really do.
3. The remaining is my "allowance." Ouch. Deducting a whole bunch for debt leaves me with very little some weeks. My allowance includes food. Going out to eat is a luxury for me. But I think my luxury has turned into a bad habit. So my debt diet is now forcing me to look at my food diet. I eat pretty well, but now I'm actually preparing meals on my own and brown-bagging it. I'm actually enjoying it! As long as I don't look at this as punishment and instead see it as an opportunity to learn a new skill -- I'm all good.
4. I write everything down that I buy. That's everything. Even vending machines (which I no longer use!) and my laundry.
I'm taking this process week-by-week and am trying not to put too much pressure on myself. But it's good to be aware!
I also did the one thing today that I was nervous about doing. I called my credit card company and asked for a lower rate. Hey, Oprah's people recommend it, so it should work! And they lowered my rate by four points! Very exciting. It doesn't hurt to ask!
Once again, it makes me think of the wonderful advice given by an old boss of mine:
If you don't ask, the answer is always "no."
I'm really grateful for the financial freedom I'm giving myself. It's kind of exciting to see the different ways I can save money. And thank goodness for New York. Even though it's so expensive, there's always stuff around that's for free. Plus, I've been working so much lately that I haven't even had time for entertainment. [I'm looking at the overtime as a good thing for my finances instead of a hindrance on my social life]
I've also noticed that once I decide to prioritize on one thing, all of my other priorities fall into place. I guess it's all about balance. Including balancing my checkbook.
It's good stuff.
If I keep this up, I should have all this paid off in April! Ah! Freedom!
Let me know if you have any saving savvy tips for me!