I just need to stop reading the news...

Maybe it's what Uncle Sam wants....

Every time I see articles like this and this and this, it makes me a little more paranoid. And I just need to get over it. My job is pretty secure at the moment, no one in our building has been laid off (minus my two bosses but that was due to poor performance, not budget cuts!) and there are no intentions on it. I have an Emergency Fund to take care of things in case of a layoff, and if I can't afford my place any longer, I can move in with boyfriend. Of course, this is worst case scenario...but still!

I think these articles are good because they bring awareness to the economy and the situation, reminding us that we need to cut back. And boy, let me tell you I have done that! I don't feel the economic crunch except my credit card company raised my APR by 2 points...grrr. That's fine, just more motivation to get it paid off fast, right?

Anyway, I'm just going to continue to do what I do. Save 10%, pay 20% towards debt. If I continue at that pace, I should be fine. I'm a lucky girl, since I've been with boyfriend I've NEVER had to worry about money. Even at our lowest point, God has always taken care of us. I'm going to continue with my strategy and with a positive attitude. I suggest you do the same.

Yay!

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! :)

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

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