Thursday, January 8, 2009


I just made a payment of $317 to my 1st and lowest credit card balance, this means I only owe $120.62 on that card! I'm so excited! Even though it's not going to be paid off because boyfriend owes money on it, it will be so nice knowing I can focus on paying my other credit card off! :)

My 2nd card has the highest balance at this point, but I'm still working out my amount with boyfriend's amount. I will definitely be debt-free before the end of the year, I can feel it.

I got the book Debt-Proof Living by Mary Hunt from the library on Monday (she also has a website) and I'm almost done with it. I've been devouring it everyday and learning new information everyday. If you haven't read it, I HIGHLY recommend it. She has great insight on managing debt, as she was $100,000 in debt once. YIKES! If you've read her book or are familiar with her ideals, last night I discussed with boyfriend starting our Freedom Account. This is basically a separate checking account that is used only for larger, expected (and unexpected) instances that sometimes require large amounts of money.

One designates which categories are going to be covered by the Freedom Account. I chose Clothing, Car repairs/upkeep, and Vacation. Then one figures out the yearly amounts in which to cover those categories.

  • Clothing
$600/year or $50/month
  • Car repairs/upkeep
$1200/year or $100/month
  • Vacation
$1200/year or $100/month
So basically boyfriend and I will be paying $225/month together or $112.50 individually into this account. The cool thing about this system is that there is money to cover those things, thereby eliminating the need for a credit card or a loan. The idea is that one builds up this account so in the event of an emergency or a need, the money is there and there is no stress about coming up with $250 to make a car repair or a $375 plane ticket; it's already taken care of.

I'm really excited about starting this! I've put my credit cards on ice in the freezer and once credit card #1 is paid off, it's going to be closed. I will continue to keep #2 just because I think one should have at least ONE credit card, just in case. I feel I'm pretty well-informed on financials but after ready Ms. Hunt's book, I feel even more empowered. Check it out if you can! :)

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