Just Checking In

We talked a lot about how to get started on the debt elimination journey and creating a savings.  I hope things are going well for you and you have started to make a dent in your bills.  Whether you are paying it off $1 or $100 at a time, the objective is to keep going.

To keep you motivated since we started this journey together I have accomplished paying off two cards and have saved almost $200.  I share this because I want you to know that you can do it.  I do not even make $18000 a year so if I can do it I know you can too.

I have faith in you that you can do this,  You just have to stick with your plan.  You made a goal and a commitment to get debt free.  Lets keep going together.  Remember the great feeling you will have once you pay off all the debt you owe.  Knowing you will have extra money each month because you do not owe $100's of dollars to credit cards and student loans.

I am proud of you for the hard work you are doing.  I am proud of you for deciding to finally get out of debt.  You have taken a big step and I know you can do it.  I will be here each step of the way to help you as much as I can.

Soon I will start telling you about the ways that I make extra money in my spare time to help off set the money that I am putting toward my debt.  I am actually buying my daughter a new backpack and because I work to make extra money and gift cards I am getting this $50 backpack for free.  So it is absolutely worth the effort.

Until next time, I am glad we are on this journey together.

The Empty

Most days are ok.  Some days are really good.  Some days honestly suck a whole lot.  I know this is life and everyone good and bad days.  The reality is how every one deals with each.  I do not always have a perky disposition.  I some times feel like the universe is laughing at me.  Most days I can handle the days I have.  Usually it is just a day.  Then there are days like today.

I don't know what it is or really how to explain it to be honest.  There are just days where no matter what I do or do not do I feel like I am wasting the day.  Like I am just burning time until something happens.  I am not sure what it means.  I know I need to get out more and be around other people but sometimes even then I have this feeling so I am not even sure what it is.

I just call it the empty.  It is when my mind and soul has just used up everything I have I guess.  The next day it is gone and I go about my day and deal with what come but on the days the empty is here it is like the world around me has nothing else to offer me.  I stare at the internet and there is nothing I want to look up or know anymore.  I mean really nothing on the internet?  But that is the empty, it is void of anything useful at the time.

Then tomorrow will come and I have stuff to do and the empty will be full and I will not have time to worry about anything else because I will have too much to worry about.

I know this was off topic of what we have been talking about but it was on my mind so I needed to vent it.

On To The Actual Saving

Ok so you now know how much you owe and how much you will dedicate to paying down this balance each week.  You have been thinking about the best way to use your taxes to your advantage.  You have put in the work to take back your money and now we are going to talk about how you can do all this and start to save some of it too.

I know when you are living paycheck to paycheck that building a savings account seems totally impossible.  The truth it is easier than you think.  Remember back when I talked about using cash only so you are more accountable for your money, well this is where that also helps your savings.

I want you to find a container it can be an actual piggy bank or a pickle jar.  It just has to hold money.  Now when you pay for something the change goes in the jar.  When the jar is full you roll it up and take it to the bank.  Now I actually save my $1 bills and my change but if you can not do that at least do the change.  It adds up and then if you need it you will have it.  You need to be dedicated though.  It means just because you want pop that day you can not go into the jar.  The savings isn't so you can buy a new t.v. later.  This is the saving you are building for real future emergencies.

Ok I am going to let all of this sink in.  I may not post for a couple days and if I do it might be on something different just so you can get working on this and get a feeling before I throw more at you.  Next we will start the different ways to earn some extra money to help with all of this.  There are so many different places claiming to pay you but through trial and error I have found some good ones that have helped me build up my cash.

Remember this is a journey and we are in it together.

Start Small

Ok so far we have talked about making your debt pay down book, and finding an amount that you are comfortable paying each week.  We made a quick side step and mentioned using tax money to pay some thing.  We will now get to the next step.  This is where the real work starts.  This is where you will actually start to pay off debt.

Every one has a different theory on this part.  Some say pay the bill with the highest interest rate while others say pay the amount that is smallest first.  Both are good ideas and can work.  I like the idea of seeing real progress though.  I want to know that me effort is making a difference in my debt.
This means I choose to pay the smallest bill first.  I actually just paid off one card and am now working on my second.  I feel like seeing a bill hit zero gives me motivation to keep going.  It is like having ice cream after a long day or your cheat day on a diet.  You can see that you are really making a difference in your debt.

So your job today is to find the bill that has the smallest amount owed.  I do not care what it is it just has to be the smallest.  This is the one you are going to work on first.  Now remember this is on top of your monthly payment.  So if it is big enough you will still get your monthly bill and you will pay the minimum that you always have but what ever the amount is that you decided was your extra amount you will pay this every week.

Currently I am working on my JcPenney bill.  I have $84 to go, so this week I will pay the $20 that I have dedicated to debt pay down.  I will have this bill paid off by the end of the month.  This will be the second bill I will have paid off and it is a great feeling.

Welcome to the journey.  I will be with you the whole way

Tax Season Means Pay Down

Ok so staying with paying down debt but veering a little, I want you to think about your taxes.  It is tax time and for some that means the possibility of extra money.  This is a great opportunity  to pay down a little debt.

It does not have to be your biggest bill or all of your debt.  I personally have picked one that is $84 and another that is $400.  The rest is going to repairs and other things that need to be dealt with.  The objective is to use it before you lose it.

This means pay something off before you end up spending it on some dinner night out and now it is gone with nothing to show for it.  The worst feeling you can get from taxes is when they are gone we have made no progress and are no better off than the year before.  It is better to pay even your smallest bill rather than nothing at all.

So take a look at your list if you have made it.  Now pick one thing that you know you can pay when your taxes come in.  Make this a priority as soon as the money gets there this is the one thing you will pay off.  No waiting just pay it immediately and then you are that much closer to being debt free.

This is a journey.  I am here with you and we are going to make it together.

Make a Commitment To Pay

In my last post I discussed the first step to getting out of debt and saving money.  Hopefully you have at least started putting together your debt down payment book.  I hope at this point you have a clear picture of what you are working with.

Now that you have seen the number it is time to start tackling what you can pay.  I know that having no extra money makes this part tough but you CAN do it.  I know because I am doing it right now.  You have to decide right now what you are going to commit to.  I do not care if it is $1, $5 or $50.  Right now you are making a decision about how much extra you are going to pay to a bill each week.  Yes I said each week.  It can be done and in future posts I will tell you how you can make extra money easily to put toward this.

Right now I just want you to make the commitment.  I personally chose $20.  It is a high number but it is what I chose.  Each week I pay $20 to the bill that needs to be worked on tight then.  This is not extra to every bill you are just committing to pay this amount to one bill so that makes it more achievable.

That is it for today.  I want you to look at what you can do.  Again if it is only $1.00 then that is where you start.  You may have to even buy one less pop during the week but you got this.  I make less than $18000 a year and I have picked $20 so I know you have $1 some where.

I happy to be on this journey with you and sharing what I have learned.  I know we can do this together.  You got this!

Flash Back To Savings

Awhile back I started to do a series where I was showing people how to pay down debt and save money even when you think it is impossible.  I know it is possible because I am doing it very slowly.  I have struggled for years and I am getting back to doing the work.  If I can do it on 17000 a year than pretty much any one can if they really do the work.

Today I am introducing the first part.  It is figuring out just what you owe.  You need to see the big picture in order to get it under control.  When you see it and know if it is growing or shrinking you are more in control of the situation.

How ever you want to to log it is up to you but you have to keep track.  I personally like to use a composition note book and do it by hand.  If you want to go digital that is fine.  Some people are really good at spreed sheets so that might work for you.  Also if you are a part of a couple you need to work together also so you are both on the same page.

You take all your bills and list them and the amounts that you owe.  Then make a column that says total and add them all up so now you can see exactly what you owe.  No matter the number do not beat yourself up.  What ever the number you can do this.  Life happens and you now need to face it and deal with things where they are right now.

Each month you will add and subtract based on  your statement,  You will add interest back to the balance and subtract any payments you have made.  So if you got charged $3.00 interest add that and if you made a $25 payment you subtract that.  Then you go to the total amount owed and do the same.  This way you keep an accurate account of what you owe.

Ok so you now know where to start.  I will keep giving you ways to get out of debt and save money.  If you have questions please comment I am here to help.