debt

AUGUST 1ST: Debt update

on/11 comments

HOLY MOLY CAJOLE  IT’S AUGUST!

Which means: MY BIRTHDAY MONTH! I’m turnin’ 25 y’all – get the presents a-comin!

Family vacay

ANNNNNNDDD…… DEBT UPDATE!

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Call the success police because I am running willlld and causing destruction! 🙂

A whole $30.98 on personal and $350.41 on the business card.

Now I’m not mocking PROGRESS – hey, the numbers still went down. But I would always love to see more than that. SO, instead of whining about it we’ve decided to make a change.

Live on cash. We’ve talked about it before, but never had the money on hand at the time to float us by, or were just plain and utterly lazy about it. It is SO much easier to just swipe. But it’s a PRISON.

I’ve learned to think about credit cards as they essentially are – a LOAN.

Every transaction is a mini – loan. You want that Gatorade or movie or whatever, and you’re gonna charge it cause you don’t have cash on you? Well, that’s cool. You’re gonna pay it BACK, with interest kid. And, you’re probably gonna forget about all the small transactions that add up and compound the interest until it whips you in the face! It’s common sense, but unless you think about it EVERY SINGLE TIME, the facts can be mindlessly swept under the rug.

Plus, like this month and probably every month, emergencies/unexpected/life happens. The beauty of credit cards for those that can really manage them is that when you don’t have the cash for something REALLY NEEDED or EMERGENT, it can ease stress momentarily. But – that’s also what an emergency savings can be for – and save on interest in the end.

So we have $469 on hand right now. We are going to budget for food/bills/etc from this CASH until Cody gets paid again. Every dollar I make writing/Etsy/side work is going towards the business credit card so that can be paid off as quickly as possible so we can start making an actual PROFIT and have REAL profit margins (however small, haha). The rest of the cash after that will be put into the Emergency fund to start it. Our paychecks will be put on debt, with enough cash to budget for the next month. Credit cards are going to be LOCKED AND BURIED IN ANTARCTICA SOMEWHERE.

We’re hoping to live on cash only, pretty much for the long term – Using credit cards only if necessary or extremely warranted.

Living off cash will definitely make it easier to stick to budget. It’s hard and annoying to keep up with the transactions that you forget about (or your sig other doesn’t tell you about… 😉 ) and by the time you have a catch up day.. BAM, over budget.

So let’s see how it goes. Like my fitness journey, enough whining and waiting for something to happen. MAKE IT. 🙂 Stick to it. See results.

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There are 11 comments

  1. 29andbr0ke

    Freeze your cards in the freezer!! That’s what I did. I put it on my blog 😀 That way if you need them in an emergency you can thaw them out, but that takes a bit of time – enough to dissuade you from carrying them with you. I found I couldn’t keep them in my purse and not use them. I didn’t have the will power. They’re still sitting in the freezer 😛

    Liked by 1 person

    1. Renee

      Holla to the freezer! I’ve heard of that before and kinda giggled… but now I’m thinking of really doing it..

      Keeping it in my purse is just nuts I’d go to it every time just out of habit hahah. and even in the safe like I have planned.. it’s not hard to open it and grab it! Thawing it out would really test patience and let you have time to think about the purchase..

      (boiling water speeds up the process I bet.. 😉 )

      congrats on keeping your credit line FROZEN in a good way! wahooooooo

      Like

      1. 29andbr0ke

        LOL You should totally do it! Just make sure you have your emergency fund in cash on hand (that I have to keep in a shoe box in a bag in the closet on the highest shelf that I need a ladder to get to).

        Liked by 1 person

  2. 2015chronicles

    Glad to hear you’re doing the cash only thing. It works. Years ago, when my husband and I were not married, we wanted to buy a house, and within a year after using cash only, and limiting our unnecessary buys, we saved enough for a down payment for the house.
    Keep up the great work.
    Shine On

    Liked by 1 person

  4. joysparker

    Congrats! We also are starting cash this month. I almost won’t need the ATM because I make tips at work. It would be nice to use my paychecks only for debt.

    Like

  5. Aline Strong

    New perspective here. Renegotiate your credit card minimum payments so that you can live an enjoyable life, not depriving yourselves of appropriate pleasures. Squeezing ourselves too hard backfires. The human spirit can take deprivation only so long. You can reduce Student Loan payments,too. Ask for it. Get some breathing room.
    Call your budget a Spending Plan., You have choices to make this month, not restrictions. And put any extra funds into creating that emergency fund right now. Aim for $1,000. That will save you angst and running to the credit cards.
    I agree with Fiscally Fit Chick. Cut up the cards. Cancel the accounts even if there is a balance. Don’t be afraid. Your Emergency Fund will be there. Or you can sell something. Don’t debt no matter what. There is always another way.
    For example, say the car broke down. There’s still public transportation, car pooling, taxis or rental cars for a short while until you figure things out. Do not debt over it.
    Try prayer, too. Ask for help from the Big Guy. It works, even about money.
    Take a deep breath. Congrats on the effort. Stick with cash no matter what. You are so on the right track.

    Liked by 1 person

  6. Adam

    Cash living created so much freedom for us.I highly suggest it. I’m going to have to respectfully disagree with Aline. There’s a season to make sure you have an enjoyable life and not deprive yourself, but it’s after we’re in the black not the red. Sure, set up small rewards as you make progress, I don’t think squeezing ourselves too hard backfires. I think it creates discipline that yields long term rewards. Renee, what I like about your approach is that you’re stinkin’ mad about your debt and want to do something about it. That’s the right attitude. You’re a fighter and you gotta keep fighting. Doing so now opens you up to awesome freedom down the road. I know it’s hard and it feels like forever. Big numbers take a while to pay down, but you’re not far off from that balance feeling manageable. Then it gets exciting. When you see $20,000 then $10,000 then $5,000 left you realize all your hard work, sacrifice, and delayed gratification will have changed your future. Keep up the hard work! I know it’s tough. I’ve been there…not too long ago.

    Liked by 1 person

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