Because I heart my birthday, I'm going to start it now.
I have allowed a bit of wiggle room. I think I'll continue my Hello Waffle and Glamour Doll Eyes subscription until December before cancelling, and I will be keeping one of my subscription boxes (either Birchbox or Topbox and they both renew in December). I may try to get another Glamour Doll Eyes OTM, but I'm not sure about this.
What I will stop buying as of Today (October 17th) for the next year is:
-Make-up (except for replacements of unique categories like foundation, primer, mascara)
-Nail Polish
-Clothes
-Shoes
-Kitchen items
-Books
-Any of the other millions of temptations I have
I will not intentionally stop buying planner stickers for the entire year, but I do intend on waiting until march before I select more. I am writing this in advance and assuming a certain shop I follow sticks to the release schedule posted I will make one more planner sticker purchase today, and if the Femme Fatale goosebumps part II collection is out, that will make its way to me. I am going to continue to spend the next couple of months monitoring my spending before establishing a formal budget. I also expect there will be slip-ups but I hope not for a while. I think if I reduce my exposure to social media and when I do use it to come with a feeling on contentment with what I have that I can change my feeling of "gimmie!" to one of appreciation without brain altering desire lust.
What is allowed?
-a new planner or two for the next year
-replacement make-up listed above
-reasonably timed haircuts as I forgot how nice this feels
-reasonable replacements for things like shampoo and soap
-savings for a vacation next year
-currently coffee and takeout food but this may change after my couple months of monitoring. I'm currently quite good a limiting my intake and use of these sources
-Two race entries
-Activities for the kids, presents for the kids, and reasonable clothes for the kids
Why?
I want to realign my finances with my values, build an emergency fund, set a good example for my children and force myself to see some areas where I might lean towards hoarding *cough cough indie eyeshadows cough cough*. I also want to be better to the earth, more mindful with my shopping and consumption and build myself back up from the start. I also want to enjoy what I have, and I think that might come from having less. I want gain control of my spending. I want to get my old habits back of exercise, eating healthy, work/life balance and financial responsibility. I want to be the mom my kids are proud of. I am hitting restart. I want to me.
If this sounds nuts to you, and to me it sounds a bit crazy to be internet posting it (doesn't everyone do this sometime?) here's a recent article on how to choose your own financial adventure. In the context f that post this could be my re-declaration of option one as I hope to out of debt by the end. Assuming I get out of debt I'll essentially be renaming my debt repayment plan budgets to low-buy in order to start the saving train. I'm looking forward to it.
Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Saturday, October 17, 2015
Thursday, July 2, 2015
$8 coffee!! What was I thinking?
Okay guys, I need to shape up. I've been thinking of No-Buy July (and maybe expanding that to 100 days* of no buy). I I'll need to write some guidelines for my July No-Buy so it can be successful. But first, I need to get my ducklings grouped together.
I accidentally overdrafted my account on a $2.50 coffee and forgot about it. It was one of those machines where it picked a default account for you. So, I was $-2.38 in my account overnight and just got dinged $5.25 in service charges. I'm also about to get super serious about my line of credit (again). It's not worth the amount of interest I am paying. And, how amazing would it be to get it paid off when interest rates are low? Very. Very amazing.
My budget is limited but that doesn't mean I have to be.
Welcome to my low-buy no-buy July.
We interrupt this message to introduce some shopping temptation.
...don't worry, I have lots of stuff that just shipped and will be making its way in 😉
Monday, June 8, 2015
Of shopping and minimalism; Saving and mindfulness
I also want to be clutter-free (or very clutter reduced).
So why the boxes and the make-up? What's going on?
For me, when I say minimalism I mean more cutting down the waste leaving only the things I love. I come from generation of hoarders (for originally good reasons - it was hard to be a homesteader, farmer for the last hundred years) so the desire and need to hoard runs deep within in. By longing for minimalism, I think I can over come this and end up in a great happy place of tidy. Of clean and neat. I also want to spend my money on what I value, and I'm so tired of being in heaps of debt. It happened so fast (refresher, life event caused an almost $100,000 swing of finances leaving me $65,000 in debt). I've been busting my behind to get out. A couple months ago, I began the habit of emotional shopping again - which has benefited my blog. It's so much easier to write about things I've bought than things I feel.
I think for the summer I will keep up my subscriptions and cut it down to two indie make-up boxes in the fall (please help me pick!). I will continue to post my hauls. I will continue to swatch. I am going to start "shopping my stash" and pulling out more comparisons. I also want to chat more about being frugal. I going to be more mindful. I started the subscription boxes as I wasn't taking care of me, and I did not have a routine (other than brushing my teeth before bed). Wouldn't it be great to have a written remind how long products last? My plan is a couple more purchases this summer (shimmer me, the august femme fatale release, another two). I'm building a huge list of wants for my birthday, and closer to the date, I'll decide what and how much I can spend. Ideally, I will be cashing in points for presents, and not truly affecting my (very tight) budget much. I will be getting my back my laser focus on debt elimination, building my emergency fund, and continuing to work on me.
Did you want details of my "shopping ban"? Did you want to see my budget and debt repayment goals?
More interestingly, I spent about one monthly payment after finishing my final student. Do you find you have to relax, just blow some money, and not care for a bit before you can go back and do it again?
Friday, May 22, 2015
My debt update
Another one bites the dust!
As of the end of the month, I'll be able to pay off my final student loan. :D
It's been 9 years since I graduated from my undergrad and 5 since my graduate degree. I suspect it would have been in better credit rating interest to take a few more months to pay it off, but I think the feeling of finally getting it done is more important.
That means, I'm down to two major debts. A personal loan and a line of credit. I want to get networth zero. I want to start rebuilding. I want to be a great role model. I want to feel the freedom (and pride) of getting myself back. I want to build my emergency funds.
The orders from .. my spending spree are almost done arriving. It's kinda beautiful a bunch of short and long TAT's can make a couple splurging week last months. I think I'll have a few more haul posts, then hopefully I'll get to reviewing and comparing it all. I also hope I'll be able to step up more work out game, and share that too. It's great to go back and read what I thought. It's what I will be relying on as I want to (and need to) cut my subscriptions down. I think I'll be cutting the major boxes but for the one that is prepaid, and I'll decide after June which 1 (maybe 2) indie subscription box I will keep. I think I'll let my quarterly boxes go, and I'll probably decline My Maven until my birthday. It's going to be a time for me to see which products I have and see what I can use up.
After I start getting this weight off via debt, I hope I can lose weight too. I am dying to sort my clothes, but I am not ready to admit this is my true weight. It must be less. I want to be what I weighted before. My plan is then to continue to declutter, aim for minimalism and focus on my wardrobe. More on this later.
My aim assuming I can sell some more clothes, stick to a very lean budget, control my spending impulses (hello much less time on the internet!) is that I pay off 70% of my line of credit before my birthday. Stretch goal? All of it.
Then I'll just have to focus on the last debt before I start gunning for savings.
xoxo
As of the end of the month, I'll be able to pay off my final student loan. :D
It's been 9 years since I graduated from my undergrad and 5 since my graduate degree. I suspect it would have been in better credit rating interest to take a few more months to pay it off, but I think the feeling of finally getting it done is more important.
That means, I'm down to two major debts. A personal loan and a line of credit. I want to get networth zero. I want to start rebuilding. I want to be a great role model. I want to feel the freedom (and pride) of getting myself back. I want to build my emergency funds.
The orders from .. my spending spree are almost done arriving. It's kinda beautiful a bunch of short and long TAT's can make a couple splurging week last months. I think I'll have a few more haul posts, then hopefully I'll get to reviewing and comparing it all. I also hope I'll be able to step up more work out game, and share that too. It's great to go back and read what I thought. It's what I will be relying on as I want to (and need to) cut my subscriptions down. I think I'll be cutting the major boxes but for the one that is prepaid, and I'll decide after June which 1 (maybe 2) indie subscription box I will keep. I think I'll let my quarterly boxes go, and I'll probably decline My Maven until my birthday. It's going to be a time for me to see which products I have and see what I can use up.
After I start getting this weight off via debt, I hope I can lose weight too. I am dying to sort my clothes, but I am not ready to admit this is my true weight. It must be less. I want to be what I weighted before. My plan is then to continue to declutter, aim for minimalism and focus on my wardrobe. More on this later.
My aim assuming I can sell some more clothes, stick to a very lean budget, control my spending impulses (hello much less time on the internet!) is that I pay off 70% of my line of credit before my birthday. Stretch goal? All of it.
Then I'll just have to focus on the last debt before I start gunning for savings.
xoxo
Thursday, April 9, 2015
Financial fall-back
I think I've realized what my emergency fund goal should be set at to avoid any financial fall-backs on debt repayments. Rather than the $1000 commonly recommended, or the $750 I had established, I think it needs to be (while I'm still in debt repayment mode) around $5000. Why?
The "emergency" situations I've had lately including my car breaking down piece by piece with the last straw being the heater completely breaking on my way to the hospital. I wouldn't have replaced it and just relied on taxis in weather below 10 C, but the husband equivalent insisted I replace it. He did have a point, and we do have a newborn. It was about $5000. It would have been about $3000 to repair it to drive-able conditions, but all would be band-aid solutions. I then was in the waiting limbo to ensure I qualified for maternity employment insurance, which thankfully I had saved an additional amount for but knew I might have had to use my emergency fund.
Even more recently, the kidlet had a doctor's exam, which lead to referrals. She is going to need a procedure for a very common problem now that is easy to handle but if left, could be troublesome. I've already paid $800 to the specialist, and it will be about another $2000 to finish. So, I'm back in the line of credit. I have my fingers crossed that I'll get a big tax refund check to cover this. But it really shouldn't be this way.
The foreseeable emergencies I can think of - pet needing medical care, my daughter seeing the specialist, car troubles, needing to pay taxes or the first month of daycare when I return are all well over $1000 (the normal "recommended" emergency fund number), but should all fall (hopefully) under $5000. Hopefully, a $5000 buffer would handle not just one but two emergencies happening close together until I can build a larger nest egg, longer term budgeting to include things like vechile replacement savings goals, and finalizing family planning (aka one more baby or call it complete).
My plan is to play it day-by-day for a bit thinking about my budget and how I am going to rearrange to pay off this new and upcoming debt. Then, should I get a refund to fullfil my line of credit back to zero, start my new $5000 emergency fund and budget (if I can) to get it completed before I return to work where again I'll reevaluate how I'm going to crush this debt monster.
What is your emergency fund at now? What was it while you were paying off debt? How did you decide? Did you rely on tax refunds or did you have to save to make sure you could pay your annual taxes?
The "emergency" situations I've had lately including my car breaking down piece by piece with the last straw being the heater completely breaking on my way to the hospital. I wouldn't have replaced it and just relied on taxis in weather below 10 C, but the husband equivalent insisted I replace it. He did have a point, and we do have a newborn. It was about $5000. It would have been about $3000 to repair it to drive-able conditions, but all would be band-aid solutions. I then was in the waiting limbo to ensure I qualified for maternity employment insurance, which thankfully I had saved an additional amount for but knew I might have had to use my emergency fund.
Even more recently, the kidlet had a doctor's exam, which lead to referrals. She is going to need a procedure for a very common problem now that is easy to handle but if left, could be troublesome. I've already paid $800 to the specialist, and it will be about another $2000 to finish. So, I'm back in the line of credit. I have my fingers crossed that I'll get a big tax refund check to cover this. But it really shouldn't be this way.
The foreseeable emergencies I can think of - pet needing medical care, my daughter seeing the specialist, car troubles, needing to pay taxes or the first month of daycare when I return are all well over $1000 (the normal "recommended" emergency fund number), but should all fall (hopefully) under $5000. Hopefully, a $5000 buffer would handle not just one but two emergencies happening close together until I can build a larger nest egg, longer term budgeting to include things like vechile replacement savings goals, and finalizing family planning (aka one more baby or call it complete).
My plan is to play it day-by-day for a bit thinking about my budget and how I am going to rearrange to pay off this new and upcoming debt. Then, should I get a refund to fullfil my line of credit back to zero, start my new $5000 emergency fund and budget (if I can) to get it completed before I return to work where again I'll reevaluate how I'm going to crush this debt monster.
What is your emergency fund at now? What was it while you were paying off debt? How did you decide? Did you rely on tax refunds or did you have to save to make sure you could pay your annual taxes?
Thursday, March 12, 2015
Hmmm, I guess that's a lot of clothes.
I do like minimalism. I think it's great, and when things are uncluttered more can be done. During 2009-2012 I took my decluttering mindset very seriously.
For months I would take out a bag of garbage/donations weekly. Many of these accumulated as college students and I shared a flat. When one of four moves out, you can't always remember who bought the can opener, or some of there were just lazy and left lots of stuff behind. One day I made it my goal to rid myself of these extra things.
I took it further later, and at one point had my closet down to just a few essentials. I knew I still had too much, but everything in my house had a place. If it didn't, it was removed. If I wanted/needed it to stay it found a place. From the extra storage for bulk food from costco, to a place for my lunch bag, from alphabetized books to a leash hook everything had a spot. This made cleaning much easier (I knew where to put everything!) and there was always the space to work/study/play.
Fast-forward to my last closet purge when I finally believed the weight I had lost was going to be forever gone. All my "fat" clothes were going to go, and although I had been removing clothes I no longer fancied, this was going to be the final call leaving only nice clothes (in three main categories: work, relaxation/evenings, exercise) that I felt great in. What was left was all going to go into the donation bin.
And then I got pregnant. Unexpectedly.
And then I would some times shop to feel better.
And I was told where I was shopping had resale value, so buy more now and sell it later.
And then I had the baby, and four months later my "fat" clothes which hadn't made it to the donation bin didn't fit. Too tight.
And then I moved.
And then more life happened.
And now, here I am a second baby later after having these clothes in storage or piles for over two years. The first year was because I needed a place. The second year was because of the renovation (which should be halted for the summer, I hope). I don't fit in most of them. But I sure am hoping I will...
Let's see the numbers
Headbands - 56 small, 48 large
Hats - 12
Scarfs - 24
Belts - 7 (only one fits today)
Legwarmers - 5
Sweaters/Hoodies 4/8
Bras - 87
Bra tanks - 73
Tanks - 104
SS shirts - 99
LS shirts - 51
Shorts - 63
Skirts - 17
Crops - 32
Pants - 62
Button-up shirts - 6
Other LS shirts - 33
Dresses - 15
Suits - 1
Shirts - 6
Polos - 1
Formal skirts - 2
Vests - 1
Total items of clothes - 588
including accessories - 1802
That's right. I have more clothes than Blonde on a Budget has total items in her house. (Love her!)
I know it's too much, but I get so attached. And I feel like I'm just breaking these guys out of boxes after years. But I'm also mad at myself of letting my spending get so out of control when I used it as a coping mechanism. I want to forgive myself for getting caught up in the hype of upload day, but I still feel a lingering I need to punish myself. I hate, hate, hate selling them. I have, and that's how I was able to pay off the balance transfer on my credit card. The hubs and I debate on this topic often. If I should sell, how much I should sell, how long do I wait to lose the wait. I'm much more impatient than him. I want it to be settled now. Not wait until I lose the last 40 pounds.
It would be so nice to get back to a place that is clean, and tidy. With items that add value, make me feel good. I want to be out of debt. I want to be saving.
So to repeat what my goals have been this year and last. I am going to reduce my closet, suck it up and sell some stuff now, and re-address in six months. And mostly, keep me focused on the long goal. Happiness. Health. Security. Well-being.
For months I would take out a bag of garbage/donations weekly. Many of these accumulated as college students and I shared a flat. When one of four moves out, you can't always remember who bought the can opener, or some of there were just lazy and left lots of stuff behind. One day I made it my goal to rid myself of these extra things.
I took it further later, and at one point had my closet down to just a few essentials. I knew I still had too much, but everything in my house had a place. If it didn't, it was removed. If I wanted/needed it to stay it found a place. From the extra storage for bulk food from costco, to a place for my lunch bag, from alphabetized books to a leash hook everything had a spot. This made cleaning much easier (I knew where to put everything!) and there was always the space to work/study/play.
Fast-forward to my last closet purge when I finally believed the weight I had lost was going to be forever gone. All my "fat" clothes were going to go, and although I had been removing clothes I no longer fancied, this was going to be the final call leaving only nice clothes (in three main categories: work, relaxation/evenings, exercise) that I felt great in. What was left was all going to go into the donation bin.
And then I got pregnant. Unexpectedly.
And then I would some times shop to feel better.
And I was told where I was shopping had resale value, so buy more now and sell it later.
And then I had the baby, and four months later my "fat" clothes which hadn't made it to the donation bin didn't fit. Too tight.
And then I moved.
And then more life happened.
And now, here I am a second baby later after having these clothes in storage or piles for over two years. The first year was because I needed a place. The second year was because of the renovation (which should be halted for the summer, I hope). I don't fit in most of them. But I sure am hoping I will...
Let's see the numbers
Headbands - 56 small, 48 large
Hats - 12
Scarfs - 24
Belts - 7 (only one fits today)
Legwarmers - 5
Sweaters/Hoodies 4/8
Bras - 87
Bra tanks - 73
Tanks - 104
SS shirts - 99
LS shirts - 51
Shorts - 63
Skirts - 17
Crops - 32
Pants - 62
Button-up shirts - 6
Other LS shirts - 33
Dresses - 15
Suits - 1
Shirts - 6
Polos - 1
Formal skirts - 2
Vests - 1
Total items of clothes - 588
including accessories - 1802
That's right. I have more clothes than Blonde on a Budget has total items in her house. (Love her!)
I know it's too much, but I get so attached. And I feel like I'm just breaking these guys out of boxes after years. But I'm also mad at myself of letting my spending get so out of control when I used it as a coping mechanism. I want to forgive myself for getting caught up in the hype of upload day, but I still feel a lingering I need to punish myself. I hate, hate, hate selling them. I have, and that's how I was able to pay off the balance transfer on my credit card. The hubs and I debate on this topic often. If I should sell, how much I should sell, how long do I wait to lose the wait. I'm much more impatient than him. I want it to be settled now. Not wait until I lose the last 40 pounds.
It would be so nice to get back to a place that is clean, and tidy. With items that add value, make me feel good. I want to be out of debt. I want to be saving.
So to repeat what my goals have been this year and last. I am going to reduce my closet, suck it up and sell some stuff now, and re-address in six months. And mostly, keep me focused on the long goal. Happiness. Health. Security. Well-being.
Friday, February 13, 2015
I've made $300,000
A few weeks ago I read a bunch of posts on calculating your life time earnings. I was reviewing my rrsp room, and decided to go a quick back calculation.
In Canada (as far as I know) you earn rrsp room at a rate of 18% until a maximum currently around $24,000. I know I've never hit this maxium so I used the rrsp room I have available and what I currently have to estimate what I roughly have earned. I then estimated what affect my pension would have my using the same rrsp room removal from last year's taxes times the number of years I had a pension. I'm aware this method has a TON of errors. But I'm looking to ballpark, not bullseye.
It's about $300,000.
Then I think what do I have to show?
Lots of debt. Acquired mosthly via student loans, court costs and a short sale on my home.
Can I make this up?
Hell ya. It's going to take blood, sweat and tears. I'm getting back on course with the knowledge that boats are tippy. I am going to get back to a positive net worth, and I am going to build a future.
Current debt total: $34,000
Estimated debt total in March 2014 $65,000.
Lots of debt. Acquired mosthly via student loans, court costs and a short sale on my home.
Can I make this up?
Hell ya. It's going to take blood, sweat and tears. I'm getting back on course with the knowledge that boats are tippy. I am going to get back to a positive net worth, and I am going to build a future.
Current debt total: $34,000
Estimated debt total in March 2014 $65,000.
Thursday, February 5, 2015
Shopping Ban February Update
I've mentioned this before, and I've drafted a few posts. I think it's time I make it an official "shopping ban". It is essentially like how I've lived (or some days tried to live) and what I've budgeted for. I've come to realize I'm from a long line of hoarders, and I've come to the point where I want to start to embrace minimalism again. I can't control too much of what the two young kids have, but I can control my possessions. The amount I have wasn't a problem when I both lived by myself and had the dispoable income to purchase AND save AND own a home AND pay down my students loans in a time-frame I was comfortable with.
I've done amazing at paying down my debt. I'm still under half-way to debt-free based on my peak point last March. I think I can do better - well, better for being on maternity leave (which my disposable income will probably decrease upon returning to work as childcare costs will increase). I think I also need to drive some points home to me. Most importantly:
I shop when I am stressed.
I shop as motivation.
I shop to feel good about myself.
I shop when I feel I've made a mistake.
I plan on counting my clothes, as I have too many. I was on my way to paring it my wardrobe down to (my) bare minimum when I unexpectedly became pregnant. The four very full garbage bags of clothes I had removed from my closet, many too big, never made it to the donation bin. After the baby was born these "too large" clothes were too small. I moved most of my stuff into storage, I lost the weight, I became pregnant again. My "too large" clothes don't fit. I've acquired clothes along the way.
In short, I have lots of clothes, and I don't know how and when they will fit.
I can't tackle this problem overnight, I love so many of my clothes, and I don't want get rid of something before I'm ready. In the past 12 months I sold over $5000 of my clothes to pay off debt, and I'm absolutely honest and crazy that I miss many of them. But I am going to start at step 1.
A six month shopping ban.
I've decided from February 1st to July 31st, I will not buy any clothes with the following exceptions:
1. Clothes for my toddler for her birthday (and again around the fall)
2. Dresses for the girls if our wedding happens in the next six months
3. I have some weight loss goals tied to clothes. i.e. when I hit and maintain a weight I can buy this item.
4. If I start a new job, and require an updated professional wardrobe.
I do want to extent this official shopping ban to other areas (which I'm observing my behavior to see which areas I have not cut in the past four years). But for clothing (and really one store in particular) I've done amazing at staying on or under budget.
However.. the announcement of my engagement, setting a date with the husband equivalent, finding and placing a down-payment on dress, the husband equivalent realizing weddings cost money and the places/dates he wants are booked, the wedding date revoked, and my shopping because I felt silly for buying a dress (and jewelry to match) has shown me what I was afraid of.
Once I open the purse strings, a flood of spending occurs.
I want to try six months free to understand myself and my desires more. I'm five days in and it's been hard. I've done it. And, now internets, you know I'm trying it. I can't tell you why it's so hard. yet.
I'm still going to post subscription box reviews as long as I receive them and see value in them. There will be many, many boxes I want to buy that I will pass on. I am still going to post about my debt. I think this helps keep me accountable, and helps me work through my emotions. I'm still going to post random thoughts. Hopefully, I'll be posting more about my running.
To up the ante on this ban, and to make it different than my usual struggling to not spend/stay on budget, I've decided for now until the end of March I am going to put $20 a week in a savings account. I'm going to add what I make from cleaning out my closet and selling items on eBay in this account. I want to see the number. I've already spoken with my partner, and he is okay that I keep this separate, and that I don't plan on using it for debt repayment, or wedding costs. I think I need to see the number. I'm also so sick of selling my things on ebay I want to be done with a mass reduction before I return to work.
Five days and no purchases. Not even those cute boots.
I've done amazing at paying down my debt. I'm still under half-way to debt-free based on my peak point last March. I think I can do better - well, better for being on maternity leave (which my disposable income will probably decrease upon returning to work as childcare costs will increase). I think I also need to drive some points home to me. Most importantly:
I shop when I am stressed.
I shop as motivation.
I shop to feel good about myself.
I shop when I feel I've made a mistake.
I plan on counting my clothes, as I have too many. I was on my way to paring it my wardrobe down to (my) bare minimum when I unexpectedly became pregnant. The four very full garbage bags of clothes I had removed from my closet, many too big, never made it to the donation bin. After the baby was born these "too large" clothes were too small. I moved most of my stuff into storage, I lost the weight, I became pregnant again. My "too large" clothes don't fit. I've acquired clothes along the way.
In short, I have lots of clothes, and I don't know how and when they will fit.
I can't tackle this problem overnight, I love so many of my clothes, and I don't want get rid of something before I'm ready. In the past 12 months I sold over $5000 of my clothes to pay off debt, and I'm absolutely honest and crazy that I miss many of them. But I am going to start at step 1.
A six month shopping ban.
I've decided from February 1st to July 31st, I will not buy any clothes with the following exceptions:
1. Clothes for my toddler for her birthday (and again around the fall)
2. Dresses for the girls if our wedding happens in the next six months
3. I have some weight loss goals tied to clothes. i.e. when I hit and maintain a weight I can buy this item.
4. If I start a new job, and require an updated professional wardrobe.
I do want to extent this official shopping ban to other areas (which I'm observing my behavior to see which areas I have not cut in the past four years). But for clothing (and really one store in particular) I've done amazing at staying on or under budget.
However.. the announcement of my engagement, setting a date with the husband equivalent, finding and placing a down-payment on dress, the husband equivalent realizing weddings cost money and the places/dates he wants are booked, the wedding date revoked, and my shopping because I felt silly for buying a dress (and jewelry to match) has shown me what I was afraid of.
Once I open the purse strings, a flood of spending occurs.
I want to try six months free to understand myself and my desires more. I'm five days in and it's been hard. I've done it. And, now internets, you know I'm trying it. I can't tell you why it's so hard. yet.
I'm still going to post subscription box reviews as long as I receive them and see value in them. There will be many, many boxes I want to buy that I will pass on. I am still going to post about my debt. I think this helps keep me accountable, and helps me work through my emotions. I'm still going to post random thoughts. Hopefully, I'll be posting more about my running.
To up the ante on this ban, and to make it different than my usual struggling to not spend/stay on budget, I've decided for now until the end of March I am going to put $20 a week in a savings account. I'm going to add what I make from cleaning out my closet and selling items on eBay in this account. I want to see the number. I've already spoken with my partner, and he is okay that I keep this separate, and that I don't plan on using it for debt repayment, or wedding costs. I think I need to see the number. I'm also so sick of selling my things on ebay I want to be done with a mass reduction before I return to work.
Five days and no purchases. Not even those cute boots.
Monday, January 12, 2015
2015 goals - Part 1
I had written these down on a sticky note that my toddler took away and hid. I've been thinking about these goals since, well, mid last year so I should have them down pat. Side note, it's nice to be over the flu. *fingers crossed*
1. Pay off student loan. $11,000 to go. I'm hoping to put $1050 on this monthly (over half my current pay) and my tax refund.
2. Pay $5000 back on my personal loan.
3. Have $6000 ready to pay back my pension.
4. Put $800 in my GIC RRSP, $600 in my mutual fund RRSP
5. Contribute to my emergency fund. Not sure of target numbers yet.
I've got a couple of personal goals - mostly running
1. Run a 10 km in May
2. Run a half marathon in August
3. I want to lose 30 more lbs by October
4. Decide if we will have baby #3 or not
I want to set work goals but I'm not sure. I don't know *if* I'll have a job soon (HR says I will - but I've learned to no trust HR) and I don't know if I want return. I don't know if I want to look for a job prior to. I don't know if I want to continue trying to get into a new field like I was. I'm full of the "I don't know" and I'm sure baby-brain does not help. I have some part-time jobs I want to apply for but the cost of childcare may make these meaningless. I have some additional ideas once I have a direction set.
Back to the financial. My focus is or at least was going to be goal #1 - results in my student loans being destroyed. I know these are "good debt" but I'm just getting sick of carrying them around, and I don't think the very minor tax credit I receive on the interest portion is worth the icky feeling they coat my soul in. I'm hoping to put $1050 on this monthly (over half my current pay) and my tax refund. However, my husband equivalent has thrown us a challenge. We're engaged! Now that I'm a bit over just being annoyed he wants to side track me from these goals, I've been planning a shopping ban and selling spree (I have the draft posts to prove this) and I'm so worried once the spending doors open, there will be no way to shut them. Our primarily budget is $5000 which partially adds to my "why didn't we just go to the courthouse and get it done there prior to our baby being born" frustration. I was very clear I wanted this, but relationships involve some compromise, and I guess he just had to do it this way. Despite all this, I am starting to get excited. I have no idea what this is going to do to these goals, but I'm going to leave January for tracking spending after the birth of the second baby, and February to analysis the results and.. build a wedding budget after we set a date? Or do you book a place first? Or find the person who will complete it?
What are your goals? Has life already thrown you some curve balls? Did you forget to post your yearly goal recap before posting your new goals too?
1. Pay off student loan. $11,000 to go. I'm hoping to put $1050 on this monthly (over half my current pay) and my tax refund.
2. Pay $5000 back on my personal loan.
3. Have $6000 ready to pay back my pension.
4. Put $800 in my GIC RRSP, $600 in my mutual fund RRSP
5. Contribute to my emergency fund. Not sure of target numbers yet.
I've got a couple of personal goals - mostly running
1. Run a 10 km in May
2. Run a half marathon in August
3. I want to lose 30 more lbs by October
4. Decide if we will have baby #3 or not
I want to set work goals but I'm not sure. I don't know *if* I'll have a job soon (HR says I will - but I've learned to no trust HR) and I don't know if I want return. I don't know if I want to look for a job prior to. I don't know if I want to continue trying to get into a new field like I was. I'm full of the "I don't know" and I'm sure baby-brain does not help. I have some part-time jobs I want to apply for but the cost of childcare may make these meaningless. I have some additional ideas once I have a direction set.
Back to the financial. My focus is or at least was going to be goal #1 - results in my student loans being destroyed. I know these are "good debt" but I'm just getting sick of carrying them around, and I don't think the very minor tax credit I receive on the interest portion is worth the icky feeling they coat my soul in. I'm hoping to put $1050 on this monthly (over half my current pay) and my tax refund. However, my husband equivalent has thrown us a challenge. We're engaged! Now that I'm a bit over just being annoyed he wants to side track me from these goals, I've been planning a shopping ban and selling spree (I have the draft posts to prove this) and I'm so worried once the spending doors open, there will be no way to shut them. Our primarily budget is $5000 which partially adds to my "why didn't we just go to the courthouse and get it done there prior to our baby being born" frustration. I was very clear I wanted this, but relationships involve some compromise, and I guess he just had to do it this way. Despite all this, I am starting to get excited. I have no idea what this is going to do to these goals, but I'm going to leave January for tracking spending after the birth of the second baby, and February to analysis the results and.. build a wedding budget after we set a date? Or do you book a place first? Or find the person who will complete it?
What are your goals? Has life already thrown you some curve balls? Did you forget to post your yearly goal recap before posting your new goals too?
Thursday, December 18, 2014
I think I obsess about checking my balances
And I don't think it's a good thing.
It started off as a way to keep me on track and focused on my new end goal. But even before I wanted to be debt free I would check in daily on my bank accounts, weekly on my credit cards, every month or two on my students loans, and no longer than three months on my mortgage once I had one.
But now my bank account is the first thing I check when I wake up, the last thing before I sleep, and probably once per hour in-between. Just like on The Price Is Right, "That's too much!".
I've got a pretty good budget that I think will work for January. I'm excited to try it out and continue to use it into the new year. If it goes as planned, I can save a bit of money to buy back my pension plan while paying almost twice the minimums on my debts. Not as good as I want, but it does mean by staying very frugal I will be able to stay at home with the kids. Oh, I'm also thinking of a shopping band for the new year. I'll let you know how that goes.
I've got a pretty good budget that I think will work for January. I'm excited to try it out and continue to use it into the new year. If it goes as planned, I can save a bit of money to buy back my pension plan while paying almost twice the minimums on my debts. Not as good as I want, but it does mean by staying very frugal I will be able to stay at home with the kids. Oh, I'm also thinking of a shopping band for the new year. I'll let you know how that goes.
Saturday, October 4, 2014
6 month follow-up
Around April, when my pregnancy was beginning to get real, and all the legalities from the sale of my house had settled, I was able to total my debts. I was also starting to find some stable ground to stand on. Because I now had a tiny ticking time bomb inside me, I wanted to create a road map to get where I wanted to be to help the beautiful person-to-be inside me enter a more stable home. I love, love, LOVED my house, but it had become an anchor pulling me into financial terrority I did not want to be in. In addition to the value of my home dropping over 30%, I was losing money each month that it was rented out. I still feel confident that I had the capital to ride it out, in 7, 10 or 18 years the value of home would have risen, and the investment would have paid off well. Yet, at the time, I was struggling with credit card debt, lines of credit, and not making enough money to have a positive balance at the end of the month. At this point in time, I no longer had my home, and instead owed other people over $65,000.
My goals in May, 2014 were:
1. Pay off my $10,500 credit card balance transfer, at $4101 in May PASS - Paid in full :D
2. Pay $1800 of my line of credit FAIL - only paid off $1000
3. Pay $600 on student loan #1 PASS - Paid in full :D
4. Pay $300 on student loan #2 PASS - Paid $575
5. Pay $1500 on personal loan PASS - Paid $1500
6. Save $1000 for maternity leave PASS - saved $1500
7. Save 5750 as an emergency fund PASS - saved $750
May:
Total Debt: $58,425
Total Savings $5
October:
Total Debt: $46.000
Total Savings: $2250
Total debt reduction: $12,425
There were broken down month by month and pay by pay. I had to alter these goals in August (I may write a blog post about this) as it was becoming clearer that I would be induced prior to the end of October, and I had some financial targets I wanted to hit to feel "ready" for the baby. I highly recommend this for both long and short term goals. It's a great way to see if your goal is realistic, and how hard it may be to obtain. In my case, I was incredibly hard to stick to my debt repayment/savings budget but being 1) short term 2) a upcoming huge life event and 3) just prior to pay reduction (taking maternity leave) a good choice for me.
Between March and the end of October I've reduced my overall debt about $19,000 and increased my savings by around $2000 (which I will be using until I receive my EI and can complete another budget). I've had a lot of demons but .... that's none too shabby.
My goals in May, 2014 were:
1. Pay off my $10,500 credit card balance transfer, at $4101 in May PASS - Paid in full :D
2. Pay $1800 of my line of credit FAIL - only paid off $1000
3. Pay $600 on student loan #1 PASS - Paid in full :D
4. Pay $300 on student loan #2 PASS - Paid $575
5. Pay $1500 on personal loan PASS - Paid $1500
6. Save $1000 for maternity leave PASS - saved $1500
7. Save 5750 as an emergency fund PASS - saved $750
May:
Total Debt: $58,425
Total Savings $5
October:
Total Debt: $46.000
Total Savings: $2250
Total debt reduction: $12,425
There were broken down month by month and pay by pay. I had to alter these goals in August (I may write a blog post about this) as it was becoming clearer that I would be induced prior to the end of October, and I had some financial targets I wanted to hit to feel "ready" for the baby. I highly recommend this for both long and short term goals. It's a great way to see if your goal is realistic, and how hard it may be to obtain. In my case, I was incredibly hard to stick to my debt repayment/savings budget but being 1) short term 2) a upcoming huge life event and 3) just prior to pay reduction (taking maternity leave) a good choice for me.
Between March and the end of October I've reduced my overall debt about $19,000 and increased my savings by around $2000 (which I will be using until I receive my EI and can complete another budget). I've had a lot of demons but .... that's none too shabby.
Tuesday, September 23, 2014
Anxiety
It's amazing how much time just being sad can take up. I had a rather large moment of anxiety this morning. I thought it had only stumbled on a few moments of my day. The clock, however, indicated that over one hour of my precious morning time had been stolen. In the words of the Price is Right: "That's too much!". I'm concerned about what will happen to my finances, my relationships (including with the boyfriend and my daughter), my job, my routines, etc. when I begin maternity leave. Which could be any day now... Scary!
I feel like I am starting to get a good financial plan in, and I've been chucking money into my savings, hopefully to prevent me from having to use any credit until my EI comes in. I am also aware I can't do a complete budget until then, so I am thinking wisely, and make mental notes of what is a "need" and what is a "want". This can sometimes leads to spiraling because there are so many things I need to buy (food, gas, certain child care items, daycare, minimum loan payments, RRSP contributions, ...) and so many more that I want to buy (subscriptions, more food, birthday presents, household items, organizational items, ...). This sometimes leads to negative thoughts spiraling as I tend to focus on how I may have picked one or two "wants" in place of a "need" eventually becoming something along the lines of "I am such a failure, I don't deserve anything including happiness or respect. I am nothing but my failures which indicated by the amount of debt I have, and how little I am putting towards it". It can get as dark as "I don't deserve my child, she deserves someone better to be her mom.". Worse of all, awful negative sentiments from my daughter's father from when he wanted me to abort the baby will enter my mind and they are the most untrue and hard thoughts to get out! Keeping in mind that I have been put over 50% of my salary on debt, paid off $10,000+ credit card debt, and dealt with some major life changes in the past 24 months, I should have nothing but confident I can do this.
Obviously, I haven't been able to cope as effectively as I would like. I do not want to keep wasting my time (and likely my health) worrying this much about my financial future. I think I need to re-employ a few tasks that have helped in the past.
1. Set aside time for worry
2. Start journaling my worries
3. Follow with a list of three great things in my life
4. Focusing on the moment, and all the things I might be missing.
5. Revise my thought patterns. Stop spiraling before it begins.
For example, I am trying to turn it from.. "I am so in debt, I can't afford anything" to "I'm so thankful, I have had a change to pay off as much debt as I have". Or change "I wish I could buy that. Why did I make so many mistakes" to "I've made some hard choices, and I'm very glad I paid extra on my line of credit this month". Or "I'm going to be in debt forever. I should give up and buy this. Why does it even matter?" to "I'm not going to let myself still be paying off my student loans when I'm 40. I'm going to crush those suckers!".
Most of the time, I really do feel lucky. I am going to be proactive to make sure it stays most of the time. Life is beautiful. I intend on seeing it that way.
Are you able to tell when you anxieties are starting to interfere with your life? How to do change it around to focus on the good?
I feel like I am starting to get a good financial plan in, and I've been chucking money into my savings, hopefully to prevent me from having to use any credit until my EI comes in. I am also aware I can't do a complete budget until then, so I am thinking wisely, and make mental notes of what is a "need" and what is a "want". This can sometimes leads to spiraling because there are so many things I need to buy (food, gas, certain child care items, daycare, minimum loan payments, RRSP contributions, ...) and so many more that I want to buy (subscriptions, more food, birthday presents, household items, organizational items, ...). This sometimes leads to negative thoughts spiraling as I tend to focus on how I may have picked one or two "wants" in place of a "need" eventually becoming something along the lines of "I am such a failure, I don't deserve anything including happiness or respect. I am nothing but my failures which indicated by the amount of debt I have, and how little I am putting towards it". It can get as dark as "I don't deserve my child, she deserves someone better to be her mom.". Worse of all, awful negative sentiments from my daughter's father from when he wanted me to abort the baby will enter my mind and they are the most untrue and hard thoughts to get out! Keeping in mind that I have been put over 50% of my salary on debt, paid off $10,000+ credit card debt, and dealt with some major life changes in the past 24 months, I should have nothing but confident I can do this.
Obviously, I haven't been able to cope as effectively as I would like. I do not want to keep wasting my time (and likely my health) worrying this much about my financial future. I think I need to re-employ a few tasks that have helped in the past.
1. Set aside time for worry
2. Start journaling my worries
3. Follow with a list of three great things in my life
4. Focusing on the moment, and all the things I might be missing.
5. Revise my thought patterns. Stop spiraling before it begins.
For example, I am trying to turn it from.. "I am so in debt, I can't afford anything" to "I'm so thankful, I have had a change to pay off as much debt as I have". Or change "I wish I could buy that. Why did I make so many mistakes" to "I've made some hard choices, and I'm very glad I paid extra on my line of credit this month". Or "I'm going to be in debt forever. I should give up and buy this. Why does it even matter?" to "I'm not going to let myself still be paying off my student loans when I'm 40. I'm going to crush those suckers!".
Are you able to tell when you anxieties are starting to interfere with your life? How to do change it around to focus on the good?
Wednesday, August 13, 2014
When I splurge as a mom
I'm constantly running numbers in my head of how much my debt is, and when can I make my next payment. I've re-written how I am going to allocate my next paycheck every day this week to try to accommodate more savings, another debt payment, or that my phone bill was $20 over what I expected (and yes, I just don't have the disposable income to just pay it). But, there are some ways that I find I just can't don't want to cut.
1. Mid-range to expensive diapers. Cheap diapers, especially no-name, give my daughter rashes. Two years later, she still gets rashes from the cheaper diapers. It's not worth it to me to irritate her skin. I'm not buying specialty, but I am buying the middle price range brand name diapers.
2. Healthy food. This one usually messes with my head as my grocery budget seems to be one of the last areas I can cut. I have reduced this by simply going to the store less often (and I feel so guilty!) When I do go, I buy fresh produce, usually on sale. If there is something healthy my daughter wants, I'll usually get it for her. It doesn't seem right to fight with her over a good decision when I should be supporting her, and keeping my debt problems mine.
3. Child care. Again, I don't go overboard, and I have declined a very fancy daycare in the $1500+ range, but I am willing to pay for quality. My $1000/month daycare works out to be ~$225 a week. Very cost-effective for looking after the most precious thing in my life.
4. Clothes. About twice a year (and it soon will be less as her growth slows down) I stock up one clothes at sale prices online. I've been very lucky to get lots of hand-me-downs which has kept this number low, and I have a few good friends who buy my daughter wonderful, quality clothes. I like feeling like I can provide for her during those $100-$200 splurge purchases. And, baby socks disappear as fast as adult socks!
5. Park/activity passes. These have paid for themselves over and over. I love having a place to take her in the winter that isn't a mall. When she was a few months old, and it was too cold to be outside we would wander the malls. Even if I splurged once a week, a $4 cinnamon bun will add up. The park has been spendy lately with the ice cream trucks, but it's so much better for my budget (and controlling my wants) then wandering in a mall. Another bonus, I don't have to ignore shopping demons and instead focus on my daughter and making her laugh!
It's true all these decisions could add to money to pay down my debt faster, but an extra $5 on diapers, $10 on my grocery bill, $100 on safe, certified childcare, $40 on clothes and $45 on entertainment are well worth the small annual cost for the daily benefit in our lives.
1. Mid-range to expensive diapers. Cheap diapers, especially no-name, give my daughter rashes. Two years later, she still gets rashes from the cheaper diapers. It's not worth it to me to irritate her skin. I'm not buying specialty, but I am buying the middle price range brand name diapers.
2. Healthy food. This one usually messes with my head as my grocery budget seems to be one of the last areas I can cut. I have reduced this by simply going to the store less often (and I feel so guilty!) When I do go, I buy fresh produce, usually on sale. If there is something healthy my daughter wants, I'll usually get it for her. It doesn't seem right to fight with her over a good decision when I should be supporting her, and keeping my debt problems mine.
3. Child care. Again, I don't go overboard, and I have declined a very fancy daycare in the $1500+ range, but I am willing to pay for quality. My $1000/month daycare works out to be ~$225 a week. Very cost-effective for looking after the most precious thing in my life.
4. Clothes. About twice a year (and it soon will be less as her growth slows down) I stock up one clothes at sale prices online. I've been very lucky to get lots of hand-me-downs which has kept this number low, and I have a few good friends who buy my daughter wonderful, quality clothes. I like feeling like I can provide for her during those $100-$200 splurge purchases. And, baby socks disappear as fast as adult socks!
5. Park/activity passes. These have paid for themselves over and over. I love having a place to take her in the winter that isn't a mall. When she was a few months old, and it was too cold to be outside we would wander the malls. Even if I splurged once a week, a $4 cinnamon bun will add up. The park has been spendy lately with the ice cream trucks, but it's so much better for my budget (and controlling my wants) then wandering in a mall. Another bonus, I don't have to ignore shopping demons and instead focus on my daughter and making her laugh!
It's true all these decisions could add to money to pay down my debt faster, but an extra $5 on diapers, $10 on my grocery bill, $100 on safe, certified childcare, $40 on clothes and $45 on entertainment are well worth the small annual cost for the daily benefit in our lives.
Saturday, August 9, 2014
Canada Student Loans Lost My Payment
Remember how I was debating about setting a goal to eliminate my smaller student loan? As such, I made a few payments (say 5) in about two weeks time, and was planning on making two more and having this little guy gone (but a fair amount of the balance actually transferred to my line of credit which has a nearly identical interest rate). Why? Because I -was- am wanting a win. Paying off my credit feels amazing, and has kept me from ranking up the total, but it's still credit available to me. A spiral of bad decisions (or something bad happening) and it could be back up there! As soon as this once massive now wee loan is gone, it's gone!* *unless I decide to return to school, but I would really like to be debt-free before I considered additional education.
Everyday, I've been logging in and waiting to see what these extra payments will do to my balance (drop it!) and how they change my daily interest rate - something weird that has kept me really focused on dropping the balance. I notice a payment I made never was calculated! Immediately, I pick up the phone and call. After a twently minute call, they think I made the payment to the wrong account number. To prove I haven't, I have had to fax 10+ pages of my banking documents and they will "look into it". I should hear back after 20 business days.
But... I wanted to pay this guy off this month... Which I know my goal three weeks ago was by the end of December, two weeks ago by my birthday in October, and somehow it moved up to next pay check. Which is how much time I'll give them to find my payment. It will take away from my vacation, but I really want one of those loans gone! It also makes me wonder if they have "lost" any of my other payments...
Have you ever had a payment you made lost? What did you do? Did they find it?
Everyday, I've been logging in and waiting to see what these extra payments will do to my balance (drop it!) and how they change my daily interest rate - something weird that has kept me really focused on dropping the balance. I notice a payment I made never was calculated! Immediately, I pick up the phone and call. After a twently minute call, they think I made the payment to the wrong account number. To prove I haven't, I have had to fax 10+ pages of my banking documents and they will "look into it". I should hear back after 20 business days.
But... I wanted to pay this guy off this month... Which I know my goal three weeks ago was by the end of December, two weeks ago by my birthday in October, and somehow it moved up to next pay check. Which is how much time I'll give them to find my payment. It will take away from my vacation, but I really want one of those loans gone! It also makes me wonder if they have "lost" any of my other payments...
Have you ever had a payment you made lost? What did you do? Did they find it?
Sunday, August 3, 2014
August Goals
I'm not ready to release a budget yet because I'm still playing with numbers. I do, however, have a ton of goals I'd like to see accomplished.
I'm debating about taking money from my line of credit and using it on my smallest student loan. If I do this, I can actually get that guy paid off before maternity leave. I absolutely hate paying debt with more debt but I keep thinking the mental benefit of one less creditor to pay.
I would like to get my savings to $1000 and my EF to $750 before October and had calculated how much per pay to put on each. I'm debating about focusing on the savings this month, and the EF in September. IF I can make the numbers work to hit the goal. Otherwise, I'll stick to my slow and steady plan.
I want a plan to pay back the money I would be taking out from the line of credit, and seeing how much room I can put back in before October/November where I might need to use these funds.
I'm also planning a short vacation, and I'd like to have $500 in spending money/food budget/transportation/etc. I would like to spend less, but it's so nice to have more than you think you'll need when you go somewhere.
Once I decide on which goals are reasonable, and if the stretch goals are in reach, I'll solidify my budget.
To repeat, I think my goals are:
August:
1. Pay off smaller student loan
2. Bring savings to $1000
3. Find $500 for vacation
4. List a few more eBay items to achieve above goals then take a break
5. Go on vacation! De-stress!
September:
1. EF to $750
2. Pay back $1000-$2000 on line of credit
3. Feel prepared for maternity leave
4. Set up baby's room, see if any needs are missing
5. Save up for daycare costs in case the baby arrives early
6. Keep emotional/impulse shopping in check
What are your goals for August? Are you going to enjoy the remaining summer? Do you every change your budget on the fly?
I'm debating about taking money from my line of credit and using it on my smallest student loan. If I do this, I can actually get that guy paid off before maternity leave. I absolutely hate paying debt with more debt but I keep thinking the mental benefit of one less creditor to pay.
I would like to get my savings to $1000 and my EF to $750 before October and had calculated how much per pay to put on each. I'm debating about focusing on the savings this month, and the EF in September. IF I can make the numbers work to hit the goal. Otherwise, I'll stick to my slow and steady plan.
I want a plan to pay back the money I would be taking out from the line of credit, and seeing how much room I can put back in before October/November where I might need to use these funds.
I'm also planning a short vacation, and I'd like to have $500 in spending money/food budget/transportation/etc. I would like to spend less, but it's so nice to have more than you think you'll need when you go somewhere.
Once I decide on which goals are reasonable, and if the stretch goals are in reach, I'll solidify my budget.
To repeat, I think my goals are:
August:
1. Pay off smaller student loan
2. Bring savings to $1000
3. Find $500 for vacation
4. List a few more eBay items to achieve above goals then take a break
5. Go on vacation! De-stress!
September:
1. EF to $750
2. Pay back $1000-$2000 on line of credit
3. Feel prepared for maternity leave
4. Set up baby's room, see if any needs are missing
5. Save up for daycare costs in case the baby arrives early
6. Keep emotional/impulse shopping in check
What are your goals for August? Are you going to enjoy the remaining summer? Do you every change your budget on the fly?
Friday, July 25, 2014
Does setting a "Debt Free" date work?
Does setting a debt free date work for you? You know, that day in the future when all your debt will be paid off? For me, I"m in so much debt I cant even fathom it. I feel like I owe so many creditors (and I don't compared to many other bloggers I read; I only have 5 plus the 3 savings accounts that used to be flush that I would like to repay to myself), the amounts of me debt are so high, and that there are so many variables to juggle that any debt free date would be complete magical bull-crap.
I used to know this date well. I knew exactly when I would have both my student loans paid off, and my mortgage. I would find it so exciting to calculate how an extra $200 per month on my mortgage would cut years off the total! I would run calculations of how much I needed to save to have $X in my account at x time, or when my mortgage payment would be more principle than interest.
But now a few months into Seriously Seriously getting my debt gone, I feel lost. I thought I was going okay a year ago but I had fallen into the trap of paying one debt with another meaning no real gain on reducing my total debt. Add that I'm about to "lose my job" aka go on maternity leave doesn't help. I know they are completely different, but my pay after October will be coming from the same office/place/rules*/guidelines. I don't get maternity top-up, and I can't quite tell what my income will be. I know I have to wait about a month, maybe more, before I will receive my first EI check. And honestly, when this leave starts depends on how long the baby wants to stay in. I can't control that!
*Main differences I detect being absolutely no work is allowed for the first 17 weeks on maternity, and there is no requirement to be actively looking for a job during the 52 week maternity/parental period. Travel is also acceptable during this period, where it would not be allowed on (regular) EI.
How can I even start to think about a debt free date?
Well, I'm taking the same approach as eating an elephant. I've got the end goal in my mind (debt free), I know I have some obstacles coming up (Maternity leave), and I know I've got some time. So, I'll just take it one bite at a time.
For maternity, my plan (until I know my income/expenses better) is to pay my minimums. Assuming I'm able to work as long as I want, I think I can pay these bills from the $1000 in savings that I will have. Current balance, $175. I'm also going to have an emergency fund (that might end up being used now or later for something like yearly car insurance that my EI budget can't handle) of $750, currently $383. I won't be able to be aggressive, but I *knock on wood* will be keeping up with the minimum payments.
Secondly, I'm focusing on my lowest debt, which has the second highest interest rate (by 0.75%) because I need a foreseeable win. My budget has me putting an extra $600/month on this guy. I calculated what will be left if I make minimum payments until December. I have transferred some of my debt from my line of credit to this loan so on January 1st, 2015, my little student loan will be gone! Hey, look at that, I do have a debt-free date. Might just be for one, but it's close enough to keep me motivated and pushing. My calculations mean this transfer will cost me about $90 in interest, on an account that I might have to dip into if my EI checks don't arrive when I hope, There are numerous reasons why this might not be the wisest financial move right now, but it's one that is keeping me motivated and pushing At this point in my journey, I need that motivation to keep my paycheck percentages to 49-60% debt payments, and to have a win before this year ends. I need this motivated to maintain the minimum payments I have now once I'm on maternity leave, because I don't want my debt to just wait around until I go back to work full-time.
What do you do when your debt (or goals) are so over-whelming the big pictures stresses you out?
I used to know this date well. I knew exactly when I would have both my student loans paid off, and my mortgage. I would find it so exciting to calculate how an extra $200 per month on my mortgage would cut years off the total! I would run calculations of how much I needed to save to have $X in my account at x time, or when my mortgage payment would be more principle than interest.
But now a few months into Seriously Seriously getting my debt gone, I feel lost. I thought I was going okay a year ago but I had fallen into the trap of paying one debt with another meaning no real gain on reducing my total debt. Add that I'm about to "lose my job" aka go on maternity leave doesn't help. I know they are completely different, but my pay after October will be coming from the same office/place/rules*/guidelines. I don't get maternity top-up, and I can't quite tell what my income will be. I know I have to wait about a month, maybe more, before I will receive my first EI check. And honestly, when this leave starts depends on how long the baby wants to stay in. I can't control that!
*Main differences I detect being absolutely no work is allowed for the first 17 weeks on maternity, and there is no requirement to be actively looking for a job during the 52 week maternity/parental period. Travel is also acceptable during this period, where it would not be allowed on (regular) EI.
How can I even start to think about a debt free date?
Well, I'm taking the same approach as eating an elephant. I've got the end goal in my mind (debt free), I know I have some obstacles coming up (Maternity leave), and I know I've got some time. So, I'll just take it one bite at a time.
For maternity, my plan (until I know my income/expenses better) is to pay my minimums. Assuming I'm able to work as long as I want, I think I can pay these bills from the $1000 in savings that I will have. Current balance, $175. I'm also going to have an emergency fund (that might end up being used now or later for something like yearly car insurance that my EI budget can't handle) of $750, currently $383. I won't be able to be aggressive, but I *knock on wood* will be keeping up with the minimum payments.
Secondly, I'm focusing on my lowest debt, which has the second highest interest rate (by 0.75%) because I need a foreseeable win. My budget has me putting an extra $600/month on this guy. I calculated what will be left if I make minimum payments until December. I have transferred some of my debt from my line of credit to this loan so on January 1st, 2015, my little student loan will be gone! Hey, look at that, I do have a debt-free date. Might just be for one, but it's close enough to keep me motivated and pushing. My calculations mean this transfer will cost me about $90 in interest, on an account that I might have to dip into if my EI checks don't arrive when I hope, There are numerous reasons why this might not be the wisest financial move right now, but it's one that is keeping me motivated and pushing At this point in my journey, I need that motivation to keep my paycheck percentages to 49-60% debt payments, and to have a win before this year ends. I need this motivated to maintain the minimum payments I have now once I'm on maternity leave, because I don't want my debt to just wait around until I go back to work full-time.
What do you do when your debt (or goals) are so over-whelming the big pictures stresses you out?
Friday, July 18, 2014
TGIF - Ready for the weekend!
First, I need to give myself a huge pat on the back. I've been continuing to put (what feels like) everything up on e-bay, and using the funds to pay down my baby student loan. So today, I've made the payment to get the total to under $4000! And, I should have it down just enough, it's not going to cross that line again, as I've planned to make another additional payment this month when I get paid. That's right, 4 months ago I owed $5500, 2 months ago I was so happy to get it under $5000. I'm hoping I can keep this feeling of success with me through the weekend. My no-spend weekend :)
I'm hoping to get back into exercising again. You'll notice my Sunday Funday hasn't been up. That's because I've been a bit down, in a lot of pain, and have had to go to emergency. I've been trying to take it easy because I don't want to go back, but I think it's time to push myself a bit. I've taken the pug out for an early morning walk twice this week (another pat on the back for me as it's hard to pull myself out of bed, especially with 3am, 4 am and 5 am toddler wake-up calls) and I'm looking forward to a long walk with a good friend on Saturday. I'm also thinking I might take a long lunch today and walk outside. I did a 3.6 km jog last Sunday, I hope to do that again today.
I'm also taking a break from ebaying as soon as I get paid for one last item. Why? My boyfriend has noted I'm very stressed about it. I know I have too much stuff, but I have no idea what to remove. The weight gain I'm experiencing isn't helping, nor is the house in a huge mess from renovations. I hope hitting three very large goals this month (my credit card paid!!! my small loan under $4000!!! My total debt squeeked under $50,000!!!) will help give me the peace to fight the demons that tell me I'm not doing enough towards my debt. I also want to free up some energy including the wasted emotional energy. Personally, I get so drained even folding laundry as I feel I should question every garment I have if it could be sold, and how much could I get from it. It will be nice to have a break from these thoughts. There are so many better things I could be doing. Like living in the moment with my toddler. <3
Happy weekend everyone! Please let me know what summer fun things you have planned.
I'm hoping to get back into exercising again. You'll notice my Sunday Funday hasn't been up. That's because I've been a bit down, in a lot of pain, and have had to go to emergency. I've been trying to take it easy because I don't want to go back, but I think it's time to push myself a bit. I've taken the pug out for an early morning walk twice this week (another pat on the back for me as it's hard to pull myself out of bed, especially with 3am, 4 am and 5 am toddler wake-up calls) and I'm looking forward to a long walk with a good friend on Saturday. I'm also thinking I might take a long lunch today and walk outside. I did a 3.6 km jog last Sunday, I hope to do that again today.
I'm also taking a break from ebaying as soon as I get paid for one last item. Why? My boyfriend has noted I'm very stressed about it. I know I have too much stuff, but I have no idea what to remove. The weight gain I'm experiencing isn't helping, nor is the house in a huge mess from renovations. I hope hitting three very large goals this month (my credit card paid!!! my small loan under $4000!!! My total debt squeeked under $50,000!!!) will help give me the peace to fight the demons that tell me I'm not doing enough towards my debt. I also want to free up some energy including the wasted emotional energy. Personally, I get so drained even folding laundry as I feel I should question every garment I have if it could be sold, and how much could I get from it. It will be nice to have a break from these thoughts. There are so many better things I could be doing. Like living in the moment with my toddler. <3
Happy weekend everyone! Please let me know what summer fun things you have planned.
Monday, July 14, 2014
Temptations
My biggest temptations loves include Lululemon and Starbucks. I've done really well at slowly over several years allowing the Starbucks demon to rest. For the past 8 months, I've allowed myself a gift card on which I put money, and once or twice a month when the time is right, I can do. It's guilt-free as it doesn't affect my budget at all. Oh, having high blood pressure, then being pregnant, and then breastfeeding have gone futher to silence my Starbucks consumption than my budget ;)
Now for Lululemon. I have done great this year! Since Late February (but it's felt like much longer) I've only made (and kept) a few purchases including a summer dress, two bigger bras and a bigger tank. I've also sold over 200 of my old Lululemon items. I've decided that when my need to purchase over comes me like it did earlier this week, and thank goodness I'm awesome and fought it, I should put that money on my smaller student loan. I really want to be rid of that guy soon. So, like this week, I did something somewhat dumb - I was going to buy the clothes using my line of credit. Instead I've taken that amount and put it on my loan. I hate paying debt with debt (as I fell into that habit so easily last year and thought I was getting ahead but was actually falling behind) but it's much better than buying stuff with debt? ... Right?... right?...
I had the same experience with Julep - check out my side bar link ;) - with the announcement of the truth or dare boxes. I love the foot cream from them, but I just finished my Avon bottle, and opened that one. I needed to talk myself out of getting a second months before I needed it (assuming the kidlet doesn't use it all up in her hair). And a very pretty duo of nail colours. For these two items, I have also put a payment on my loan.
I hope seeing the physical, numerical? loss of money from my account will help me prioritize where I am putting my money, and keep me on track to debt repayment and reasonable living. I'm planning I will only need to do this one more time to get the message, because I need lots of my money for my basic expenses! I think this plan will work when the stranger test has failed.
How do you stay strong? Have you had any crazy plans to spend your money on debt/savings before you can frivolously spend it?
Now for Lululemon. I have done great this year! Since Late February (but it's felt like much longer) I've only made (and kept) a few purchases including a summer dress, two bigger bras and a bigger tank. I've also sold over 200 of my old Lululemon items. I've decided that when my need to purchase over comes me like it did earlier this week, and thank goodness I'm awesome and fought it, I should put that money on my smaller student loan. I really want to be rid of that guy soon. So, like this week, I did something somewhat dumb - I was going to buy the clothes using my line of credit. Instead I've taken that amount and put it on my loan. I hate paying debt with debt (as I fell into that habit so easily last year and thought I was getting ahead but was actually falling behind) but it's much better than buying stuff with debt? ... Right?... right?...
I had the same experience with Julep - check out my side bar link ;) - with the announcement of the truth or dare boxes. I love the foot cream from them, but I just finished my Avon bottle, and opened that one. I needed to talk myself out of getting a second months before I needed it (assuming the kidlet doesn't use it all up in her hair). And a very pretty duo of nail colours. For these two items, I have also put a payment on my loan.
I hope seeing the physical, numerical? loss of money from my account will help me prioritize where I am putting my money, and keep me on track to debt repayment and reasonable living. I'm planning I will only need to do this one more time to get the message, because I need lots of my money for my basic expenses! I think this plan will work when the stranger test has failed.
How do you stay strong? Have you had any crazy plans to spend your money on debt/savings before you can frivolously spend it?
Friday, July 4, 2014
I did it!!!
A happy pug to represent a happy Leigh!
I posted last week about completing a balance transfer on my credit card, over $10,500 (!) and with my last paycheck and a whole lot of ebaying, I have made that guy "$0"!. And just in time before the deadline of July 7th. Thanks to my government tax return, and some very good fortune, I'm a lot closer to my October goal of lowering my debt to less than $50,000.
I won't lie. I'm absolutely and totally scared it will go back. What if I forget an automatic payment? I don't have a plan to pay my auto insurance next year. What if... What if.. What if.. Unlike my line of credit which I am deeply afraid will go back up, and probably will if my savings expire, I feel more confident that I can control this, and go back to whom I am. Someone who is very good with credit.
A sexy zero balance is a great start!
Have you made any financial accomplishments lately? I'd like to send you a virtual high five to let you know you're awesome if you have. :)
Sunday, June 29, 2014
Budget for July
I've planned out how my paychecks will go for the next three months. If WHEN I stick to it, I'll be in pretty good shape:
Here's what I would like am going to do:
| DEBT REPAYMENT | Budgeted | Actual | Leftover |
| Credit Card | $100.00 | $100.00 | |
| Personal loan | $250.00 | $250.00 | |
| Student loan #1 | $125.00 | $125.00 | |
| Student loan #2 | $775.00 | $775.00 | |
| Line of Credit | $230.00 | $230.00 | |
| SAVINGS | Budgeted | Actual | Leftover |
| Emergency | $170.00 | $170.00 | |
| Savings | $350.00 | $350.00 | |
| Retirement | $10.00 | $10.00 | |
| FOOD | Budgeted | Actual | Leftover |
| Groceries | $90.00 | $90.00 | |
| Dining out | $20.00 | $20.00 | |
| LIFE, ETC. | Budgeted | Actual | Leftover |
| Daycare | $400.00 | $400.00 | |
| Health Care | $15.00 | $15.00 | |
| Personal Care | $15.00 | $15.00 | |
| Gas | $175.00 | $175.00 | |
| Entertainment | $25.00 | $25.00 | |
| Baby Supplies | $60.00 | $60.00 | |
| Phone | $80.00 | $80.00 | |
| Misc./Cash | $20.00 | $20.00 | |
| $0.00 | |||
| TOTALS | $2,910.00 | $0.00 | $2,910.00 |
I'm estimating on a few of these categories and hopefully not over-estimating my pay. I know some categories are low, but working hard pays for itself in the end, right?
Okay, that was scary!
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