On the 1st of the month I like to update everyone on how I am doing with my budget and whether or not I’m staying on track. 1) It’s nice to hold myself accountable by writing about it. 2) Hopefully I will inspire some others to pick up the healthy habit as well.
Overall, my past few months have been great. I have had a surplus in my clothing, spa, groceries, dining out, and many other budget categories several months in a row. Basically this means I haven’t been spending. I have been so focused on saving, saving, saving, and paying off my credit card debt, that I have almost been too strict on myself. I realized I was close to falling into the same trap many people trying to lose weight often fall into.
How many dieters do you know that restrict themselves from candy and chocolate and soda for months while trying to lose weight? Yet the minute they hit their goal weight, they go right back to their unhealthy eating pattern. For me, I don’t want to restrict myself during my money diet so much so that when I’m debt free I fall back into the same trap of overspending.
That’s why looking at this as a lifestyle change and NOT a diet is so important. I’m a firm believer in moderation. Whether its cutting back on sweets or spending, you have to be sensible. It’s a balancing act. I finally decided to let loose in May and actually spend some of the money I have allotted myself. I knew if I didn’t, eventually I would do something I would regret. I would throw down my credit card and go nuts. I would be right back where I started… a credit card debt nightmare.
As always, savings first. This month I managed to put $100 into my car savings account. I also put $100 into my emergency savings account. Finally, I put $300 down on my credit card debt. After all this “money fasting” I decided to spoil myself. It’s time to actually spend!
After savings, spending. After the mandatory bills, I decided to spend money on some “wishes and wants”. My chocolate 
I went shopping and bought some clothes. I got a fresh haircut. I allowed myself to go to a few lunch and dinner outings as well. I even splurged and bought a few gifts for people.
When looking back at my finances I did manage to go slightly over in a few categories, but nothing more than $20. I think I deserved that new dress and delightful dinner with friends. Besides I’m right back on track for June and it was worth it!
Point being, make sure you don’t go too extreme if your trying to budget, climb out of debt, or save money. Allow yourself some pleasures now and again. After all, you work hard for your money and you cant take it with you when your gone.
To be more realistic: you have to give yourself at least three (3) years to make the full commitment to a cash-only basis lifestyle. It is NOT easy. I’m on my 2nd go at it.
The first time was in 1987 and I lasted 15 years on cash-only. Then I got this pre-approved Master Card in the mail with $1500 credit and I said to myself ‘I’ve been good. I deserve a vacation’ and went off to Hollywood. Then I wanted a new car. After all, I’ve been good. Well, you get the picture. It doesn’t take much to slink back down into debt.
In 2001, when the dot com took a dump, again I switched back to cash-only. It was brutal. It’s hard to say no to yourself. So far, it’s been 12 years that I am off credit and back on cash. But guess what? Hubby got a pre-approved credit card in the mail a few months ago, at zero percent and only $500 credit. Since we desperately needed money to finish our 2nd floor remodel before Christmas company came, I agreed to the card. I thought at 0% interest for a year, and paying back $50 a month over 10 months we’d be fine. WRONG! I’m caught in the credit card again because every month it’s something that we want, need. emergency WTF! I have 3 more months to go before 0% turns into 29.9%. See how smart the credit card companies are? And we owe a friggin’ $370!!!!!!!!
You can’t use credit even for a second. It’s a losing battle. I own my house (2), cars (2) and every single thing you can think of, all debt free. Vacations are cash or we stay home. Yup, my 2nd floor remodel is done, but at what cost? Now what? All I had to do was wait.
UGH!!!!!!!
Hopefully, I can send the card $100 a month for the next three months and then just the $70 and be done with it. Oh, and get this, the payments are due on the 18th, so I electronically pay them on the 18th BUT last month the charge card company says it now takes 24 hours to process payments, so the last payment didn’t get credited till the 19th and we got hit with a $30 late fee!!! I got it removed but I’m cured again. Credit sucks!!!!!
I’ve been cash only for 5 years now. 5 years ago I was at $15,000 in credit card debt which maxed out both of my cards. That’s when I knew I had a problem. My car is paid off and I’m ok with having a mortgage, but credit card debt… No thanks. Today I only have $850 to go. I hope to be done in August (fingers crossed). Once I was finished paying off one card, I started a new savings account. That $100 a month I used to put towards credit card debt #1, I now paying put into an “emergency savings account”. Ever since, this savings account has saved me when those unexpected crap things pop into my life. Once I’m done with credit card #2 I plan to put the amount I’m paying towards it directly into a car savings account I have already started. Hopefully this will help me pay cash for the new car I want in a little over a year. (Well, not brand new….a few years used is fine by me) You can pay of that $370! You just have to find something to sacrifice for a few months. Perhaps don’t go out to eat as much, hold off on getting your nails done, or suspend your gym membership. I don’t know your personal lifestyle, spending habits, or desires. I’m just trying to think of random items that may motivate you! You can do it!
well yes, of course I can do it. It’s all my fault. something always comes up and I need the credit card to pull me through. we were using it to buy gas! there really is nothing left to sacrifice anymore. this is it.
my ford extended warranty is paid off and that was $50 a month. that’s what i was using towards this silly credit card.
when you’re an independent contractor it’s hard to regulate and judge. credit is NOT good for me. I’m just not good at it. somehow something always pops up. if i didn’t have it i’d be better off.