Almost to the Finish Line!

Ok, so I'm pleased with myself. A long time ago I decided that the system that worked for my hubby wouldn't work for me, so I watched him pay his bills, save money and become debt-free. I think I'm a bright person, although I don't have a masters degree in Economics, so I still thought I could do it on my own. Strike "I'm a bright person". I'm a stubborn person who decided I could do it on my own. How wrong I was.

The first thing I did was realize that a checkbook is a lie. You put your money in, the balance looks SO good and you spend it all. Then to make it through the rest of the month, you beg, borrow, steal and use credit cards to fill your gas tank. 

The very month I decided to try things my husband's way thing dramatically changed.  I get paid once a month and I know the bills that I pay electronically. Everything else I withdrew is CASH. I set up envelopes that had tags like: groceries, gas, Rx, car maintenance, subscriptions, savings and vacation savings, and I divided the cash up. The first month I freaked out thinking I didn't have the gas envelope or the food envelope with me, but it worked out. I paid my credit cards electronically, moved a few dollars from checking to savings and moved on.  You know what?  It worked GREAT! I didn't spend money I didn't have and I didn't touch my credit card even once. I even began tithing to my Church for the first time in my life.

My debt is now down to less than $2500 dollars!  It started at $7000, so we're not talking petty cash here. We chose to pay for my truck in cash, but Jim pays a car payment on his new car (until he gets tired of writing that check and sells some stock). As a couple, we are in really good shape financially. The only thing he owes his his new car and a few hundred dollars on credit cards, and I only owe $2500. No mortgage, so loans...clear sailing here kids.

I am so grateful that Jim has a great job that he is in no danger of losing, and I, being on disability, hope it keeps on coming.  But the truth is, if we lost either one of both, we'd be ok. We'd probably cut way back on things (we aren't real big spenders anyway) but we would be okay. We have everything we need-a warm home, a year's worth of wood pellets for the stove, a good pantry of food--but most importantly, we have each other and we both know how to live frugally. To hell with the what the neighbors have!

Uh oh, Set Back!

Got a letter from my doctor's billing office that if I didn't pay off my balance by October 9, they will no longer consider me a patient. It's not a big balance and I've been paying the $25 a month, but they decided they want their $103 now. I also promised my dentist I would pay my balance of $90 when I get paid on the 21st. Yikes.

I pulled up my budget, which I have in an Excel file and got to work. I'm having some surgery next week and will have to be housebound for three weeks, so I reduced the amount I save for gas by $50.  Plus my husband goes bird hunting every chance he gets, and of course takes my truck, so I think I'm safe saving a little less for gas.  I just had my hair cut last month into a short pixie, so I reduced that line item to 0. Another $30 towards the dentist or doctor. I reduced my grocery amount by $25 since Jim is gone a lot in October and the rest I (gulp) reduced my credit card payment by. That hurt.

While I was at it, I refigured future credit card payment, increased them a bit and look to have the balance GONE by July of next year. IF I happen to sell anything I write, the entire amount goes towards that balance to pay it off even earlier.

I would never have believed I could be so money conscious and actually not feel deprived that I can't go out and just buy what I want. That's what got me in trouble in the first place all three times. I am so looking forward to being debt free!

Major Progress!

This has been an eye-opening year.  I never, ever liked talking about money with my husband because I always ended up upset. Avoiding the big elephant in the room was getting tough and I wasn't getting very far with controlling my money instead of it controlling me. I don't keep any credit cards in my wallet anymore, so I'm not adding to any credit cards, which in itself is great. However, I was still broke a week after I got paid, and often bills were not paid. There was always month left long after the money was gone.

Jim was asked to teach a finance course to the Young Married group at Church and I went to support him. After a couple of lessons, the lessons were sinking in. I took some of the ideas to heart, and one in particular is working great for me.

While I had a spreadsheet telling what how much to pay each month and to whom, if I didn't pay it right after I got paid I found I had already spent the money on something else. I could never keep up with monthly hair appointments because I'd already spent the $30. When it came time to get the oil changed in my truck, I'd have to write furoriously for the extra money to pay for it. I never had money to subscribe to my favorite magazines. Never had money for an impromptu day trip for a story, and certainly never tithed at Church, something I had often felt bad about, but felt I had no choice.

I took several letter-sized envelopes and on the top right corner I wrote tithe,groceries,prescriptions,truck maintenance, hair, subscriptions, dr, hair, travel savings, etc. From my spreadsheet, I wrote the amount I needed for these items each month under the title for that envelope.  When my monthly check comes, I take it to the bank and take out all but the money for my credit card payment, which I do by electronic transfer, and twenty extra for emergencies, fees, etc.  The cash goes into the envelopes, and the envelopes go into the drawer. When I'm going grocery shopping I take the envelope for groceries and the one for gas, and I fill up the truck. The receipt for groceries goes in with what's left of the grocery money.

My check comes in next week and I still have money in the grocery envelope, the gas tank in the truck is 3/4 full, all my bills are paid and I have $30 cash plus money in my paypal account. This system is working so well for me that I've stopped making fun of my husband who has done this for years. He does it for the big things, like house taxes and insurance, our time-share annual fees, car insurance and vacation savings.

I've been diligently paying down the single card I have a balance on, and it is down to $2750. When I started I had two cards with a balance of over $7000 so I am making great progress towards my goal of being debt-free!