Holy crap. I did it. I paid off my entire debt before the end of March. Thank you Jesus! I'm just so grateful at this point in my life! I was able to really watch my spending and buckle down and get my debt paid off earlier than I had expected. Today is a day of celebration and freedom!! :)

Now I'm going to really hit my Emergency Fund HARD and find a charity to tithe to. I'm so blessed!

Disappointing news

Well, due to my error in my numbers, I'm not going to be debt-free next month. Grr. After filing taxes, it said that I was eligible for a tax rebate in addition to my refund, well what I didn't know what that was factored into my refund. Basically, I thought I was getting an additional $300, but I'm not. :( So that $300 was going to help get me debt-free and now it's non-existent. Dang am I mad at myself, I wish I would have read the paperwork better, then I wouldn't have expected the $300.

Oh well, if I continue where I am, I should most definitely be debt-free by April, which I'm not going to get upset about! :) One month set-back. I can take it!!

Updated Totals

After spending numerous, and I mean numerous, hours figuring out my portion of debt and boyfriend's portion of debt, I have my new totals for my credit cards posted in the left column. Or I'll just post it here too:

Credit Card #1

• $120.62

Credit Card #2

• $2468.98

Total Credit Card Debt: $2589.60

After getting those totals together and seeing the balance doesn't make me feel too bad at all! I thought I had owed more, so seeing this reality really makes me feel great! And the fact that if I used my emergency fund of $2300 to pay off my debt, I would only have $289 left in debt which means I would be debt free at the end of the month (and emergency fund broke!). It's completely tempting to do so, but I'm going to diligently keep it where it remains safe. Still, knowing that, makes me feel empowered! :)

October on $150

inspired by small notebook's no spend month, one estate sale/thrift store loving girl with three rescued animals goes on a mission to see if she can only spend $150 in october. what will she discover? can she survive? what will the $150 cover?

• food--more specifically groceries, takeaways, and restaurants. also animal food and any treats


• gas for my honda


• household necessities--let's count toliet paper, cleaning supplies, light bulbs, batteries, etc.


• entertainment--theatre tickets, book stores, etc.


• clothing--this should be easy. i hardly ever buy clothes.

what won't this cover?

• rent


• utilities


• bills (credit card, insurance)


• savings


• charity

the boyfriend always says i'm frivolous. i'm really not. but i do like to go to thrift stores and i hardly ever spend $50 or more on something. but the little stuff adds up quick. i'm hoping to be able to stretch this month's paychecks to be able to donate more to charity and to put more on my credit card debt.

tomorrow is day one which could prove to be difficult since i don't get paid till thursday, but i think i can go one day without spending. i'm going to compile a list of cheap, yummy meals that i can prepare at home to lower my costs. luckily i have a freezer loaded with chili and ratatouille so that will last me a while (if i don't get bored of it! oh well). i do know i'm going out to lunch with my coworkers on thursday so that will cut into my spending already. i'm also going to take a lot of my dvds and other items and put them on craigslist to add to our travel fund. the bonus of this month is that i have a $50 target gift card if things prove sketchy or in case of emergencies, but i'm going to see if i can do without. i'm going to put my debit cards away (ahh) and not use them this month. if the family at small notebook can do it. so can i.

DYI: Success!

Before: Fuzzy wuzzy was a bear...

so it worked. really. grabbed the ruby and went into the bathtub to try this whole "at-home grooming thing." it wouldn't be official without the "thing"..anyway, so she looks a little pathetic because i shaved her face to get the poodle look and BF says she looks like an anteater. :( aww..poor rubbles (pronounced roobles. she wouldn't let me shave her legs so i shaved her head, her face, and her body, but no legs. seriously now she looks like the funniest looking creature. ever. i love it. i've read that grooming your dogs can create a bonding experience.. yeah, right. me in the bathtub covered in fur. juno looking at me like i'm trying to steal her soul. practice makes perfect, obviously, but i'm really excited and motivated to get this down to save a ton of money.

AFTER: so pretty. tee hee

speaking of money, i'm doing really well on the whole.."i'm trying to be debt-free thing." really. whenever i'm hungry and need to get something to eat, i've been resorting to *gasp* the pantry. and i've come up with some yummy meals on the fly and concocting some pretty darn good food. i'm going to only buy things when i need them (i know, novel idea, right?) instead of impulse shopping. i'm going to resort back to my old ways that i had in england of using the envelope method that i've mentioned before. i get paid this thursday so i'm excited to get it started (although the final season of will and grace comes out on tues and will be almost all of my fun money for two weeks. crap.) but this is where the fun part comes in. prioritizing..figuring out what i want to spend my money on and the most important items. yay!

i know, i get way too excited about bill paying. what can i say? i'm a geek. :)

Money money money.. MOOONNNEEEY

For the first time in my adult life I am making more money than I ever have, living on my own, and paying my own bills. Being fair, I've been on my own for 7 years, but I was married so we had two incomes.

Interestingly, we didn't have much debt because I watched it like a hawk and loved paying the debt off. Before we moved back to the States last May, we were a couple grand in the green and none in the red. After moving back, it's been a constant struggle. First I had a job, then I was laid off. I didn't use my credit card ONCE while I was laid off and really pinched my pennies. I was doing so well once I finally had a job but guess what happened? My debt went up, up, up. WTF?!

So now, I'm struggling to be debt free yet again. I want to be able to save money to buy a new car in a few years and put a down-payment on a house. I just don't understand how I could be so irresponsible to get back in this position but I'm hitting it head on.

I've been searching the net for ways to reduce spending. So you're thinking, well, duh. Just stop. Yeah, it's pretty easy to do that, but I'm going to go back to the way I used to handle debt. I think the main problem is that I'm paying rent. BOOM $600 down the drain on the first of the month and that, well, sucks. I'm trying to find my groove with my new found income so I'm floundering right now.

Here are my own tips and hopefully they can help you achieve a debt-free lifestyle. Obviously most of these you've heard before, but this works for me. If you have some good tips to share, please do. I still haven't managed the dreaded "B" word (budget) but I'm going to try, yet again.

• Pay yourself first. Always allot at least 10% of your income into a high interest savings account like ING Direct.


• Attack the highest interest rate and pay the most money on it. I have two credit cards, one with zero percent interest for 18 months and one with pretty decent interest rate. I pay a little above the minimum on my zero percent interest and throw a big chunk at the higher card; why put a lot towards something that won't accrue interest until after 18months? The plan is to pay it off before that period is up and the extra money on my other card will lower the balance.


• Tithe. I donate money every single month to one of my favorite animal charities, the ASPCA. I know, you're thinking, if you want to pay your debt off, aren't you better putting that money towards your debt and THEN to charity? Uh uh. I always believe you have to give to receive and to know that my money every month will benefit animals, I'm willing to make that sacrifice.


• Do the envelope trick. I ALWAYS pay with my debit card, I love it and couldn't live without it. The problem with that is one doesn't see where the money is going and it is a lot easier to spend. By labeling envelopes such as "Groceries" and "Fun Money" you put the cash in the envelopes allotted for that month or two week period. When the money is gone, it's gone and you have to either wait till next pay period or learn to spend more wisely. When I was married we gave each other $40 for two weeks. This counts for snacks, magazines, clothes, etc. Once it's gone, it's gone. It will really make you think twice about buying that magazine.


• Look for ways to make money and I don't mean open up a lemonade stand. Gone are the days were people sold items on ebay for money. Now don't get me wrong, you USED to be able to make money on there, but now that executives have become so greedy, it's no longer the way to make quick cash. Craigslist on the other hand, yes. Why is Craigslist better than ebay IMHO? Well first and foremost, it's free! You can list your items on there as long as you like at no charge to you and no stupid fees. Another benefit is that you don't have to wait for payment or ship the items out, you have the person come pick up the item for you. Most cities have a Craigslist, check it out, list your stuff, make some cash.


• Really think about an item before you buy it. I mean overnight, not five seconds later. If you still want it after 48hours, then buy it. But giving yourself some time to think about an item, it allows time for you to reflect on what you're looking to buy.

I hope this helps! I'm excited to be debt-free once and for all. Onward and upward!

Best,
LL

mage source

Inspiration: Donna Freedman

Now that the US is in a recession (depending on who you talk to), it is interesting how many articles are coming out about being frugal; it makes me laugh. Some of us have been doing this for a long time! But nonetheless, I'd love to see Americans make a dramatic change in their lives in order to pay off their debt, live simple, and avoid credit cards.

After logging off my email account, an article on living frugally caught my eye (naturally) and so after reading it, I found another article that had me thinking. The title is, "Surviving (and thriving) on $12,000 a year." WHAT?! $12,000 a year? $1,000 a month to cover all my expenses? And mind you, this is a woman who is going back to school. She even tithes $20 a month to church. WOW. She is my hero.

Could you do it? $1,000 a month to cover rent, utilities, car, gas, food, unexpected expenses? I don't think I could, I don't spend a lot of money, but I sure as heck LIKE having the money to spend it in case I need to. Well then, who doesn't? I'm sure Donna doesn't like living so frugally, but I'm sure it has really put her priorities in line and once she's done with school she'll have more money. I can promise you this, she will only tithe more, continue to live frugally, and have an enriched life, as she obviously does now.

Check out the article, leave your comments. Donna is an inspiration, we could all learn a lesson from her experiences.

I challenge you this week:

• Find a charity this month and donate some money. I'm trying to pay off my debts but if Donna can do it, so can I. My favorite charities are the ASPCA (American Society for the Prevention of Cruelty to Animals) and the National Anti-Vivisection Society.


• Cut back on your food expenses, cook at home this week 3 times.


• Lower your gas consumption. With gas being so high, walk to the grocery store this week. The weather is getting nicer and this is a simple way to save money and help your health.

Image courtesy of: http://howwilliberich.com

Tax season: what do you do with your refund?

Did you know that the average American family spends 43% MORE than they earn each year? Do you see something wrong with this picture? Because I surely do!

Hopefully by now most of us have completed our taxes and are just awaiting the refund either in direct deposit (the fastest way) or check in the mail. Those who have paid their taxes this year will also receive the tax check the government is sending most in order to "stimulate" the economy.

From the IRS Economic Stimulus Information Center Website:

"Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment."

Please do not fall into the trap the government is luring us into; take that check and use it to pay your bills! Pay down your debt, don't go out and spend the money, put it to use. Put it towards a house fund, money towards an appliance that you've been needing to replace (make sure it has the EnergyStar logo on it!), in a savings account, your IRA, or any other retirement fund, or on your car payment. I took my whole income tax refund, which was a very nice chunk, and as soon as I saw it was in my account, transfered it all to loan and made a principle only payment. I will do the same once I get my check from the government. With the two of these checks, it will make a substantial dent into my debt and will allow me to be debt free in only a few months! :)

Yes, it would be nice to get new clothes, go out, and splurge a little bit, but why? If I chose to do that I would look at my debt and wonder, how much interest would I have saved if I had only used that money to pay it down? Did I REALLY need the new clothes or did I just want them?

Please rethink your spending habits here upon arrival of your refund as well as stimulus check; this is a good amount of money that could be put into use. With the average American household owing more than $8,000 worth of credit card debt, please, pay down your bills! Go against the Joneses!

Click here for more info on the stimulus package and to see if you're eligible.