OK. So. Half the point of this whole blog experiment, is for me to get a hold of my finances and destroy my debt. As previously noted, I've finally become serious about slaying this dragon as I have come to realize certain things.
1) I am spending as much on old debt monthly as I am on living expenses.
2) Once these are all paid off, I'll have an extra ~$600 a month to save/invest/blow on lots of candy and booze (the latter is probably not the best choice...most fun however)
3) If I EVER want to be able to start my own business (wedding/event planning) or eventually be a stay-at-home mom (I said EVENTUALLY!) it would be much easier for me to come up with the $700 a month for living expenses rather than the $1300 that it cost me to live each month now!
SOO...I started putting it all in the checking account and writing down where it goes. Having to use the debit card for one Diet Coke and then record it, makes you think twice.
I know there are tons of financial gurus that tell you to use the "envelope" system (put your budget for the month for groceries in an envelope and when its gone, its gone etc). I have discovered that if I use the "electric envelope" system on Mint.com and actually keep up with it, it helps me to see where everything is going. Plus, they email me with all of the finance charges that the credit cards slap me with and email me my apr, so it's right there in my face. This helps to keep me pissed off enough to decide that paying more on these cards is better than buying a new pair of shoes.
I am also singing the praises of ING Direct for their savings accounts. Now many people use them for long term savings because they offer a 1% interest on savings (!), but I have found that the ease to transfer money from my Chase account to my ING accounts PLUS the fact that it takes a few days to transfer it back to my checking (No "emergency" shopping trips!) has made it the perfect place for me to hide money from myself.
I currently have one account for paying off CC's and another for "house" related savings. The CC payment account is only $120 short of paying off my Express bill!! WHOOHOO!!
Bottom line is that, you CAN do this. I never believed the "every little bit counts" towards these huge CC balances, but by knowing where all of those "little bits" went, and by transferring a "little bit" at a time into an ING account, I can really see how it adds up!
Good luck to everyone who is trying to slay this dragon with me. We're totally St.George and can do this! Just takes some weapons!
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