End of the Year - Looking forward
The end of another year. I'm looking forward to 2020. Yes, I'm taking some radical steps in order to have money in my savings and reduce my debt, but these are goals l I have and I'm going to make.
First goal: raise $5000 in savings. Shouldn't be too terribly difficult. I'm currently sending $25 a paycheck to my savings account and all my debit purchases are being rounded up to the nearest dollar and the difference is being put in my savings account. My credit union calls it "Stash Your Cash". Also, every bit of money I make off my side hustles are being put into savings and at the end of each paycheck, any extra money in my main checking account will be put into my savings account, effectively ensuring I only spend within the means of that paycheck.
Yes - radical steps. But with these rules in place, I have the potential and the power to save money every paycheck. So far, I have $80.01 saved. Now, that amount is going to go up when I get my tax refunds. And trust me, I'll be submitting my taxes as early as I can. I'm already starting to gather the paperwork.
This first step is important to me. As I've said before, having a strong savings/emergency fund is critical when paying down debt. I have to make sure that when an emergency does come up - tires for the car, repairs on the house, unexpected doctor or vet bills - I have the funds to take care of it and not use my credit cards. Once the credit cards are paid off, then and only then can they be used for their original purpose - emergencies and/or credit building. But that will be Stage 3 of my financial plan. I'm still on Stage 1.
Stage 2 is being implemented alongside Stage 1. Stage 2 is pay off the debt. As of today, I have $18,050.47 in debt from medical bills, credit cards, and loans. This doesn't include the mortgage payment. This is just to get rid of the extra debt I have and raise my credit score (a secondary goal in Stage 2). It is being implemented alongside Stage 1 only because I will continue to make minimal payments on my bills while I'm saving. So, that amount will go up as interest is charged and go down as I make payments.
Once Stage 1 is complete, I will still have some rules in place - saving $25.00 each paycheck and having Stash Your Cash squirrel away pennies with each debit purchase. But, any extra money I make will be now used to pay down balances, starting with the lowest balance. Any money from the side hustles and any extra money at the end of the paycheck will be used to reduce the debt.
Stage 2 is going to be more difficult. I know my debt amount is going to go up as interest is charged on my accounts. I fully expect it to. But I'm not going to get discouraged. In fact, it is going to encourage me even further because I will work harder to reduce that debt. And I'm going to celebrate every win. Any time I save money or reduce my debt, I'm going to celebrate.
Now, yesterday, I paid $70 on my therapy bills. And I was a little discouraged when the clerk told me how much was owing. I should have asked her to print me a copy of the current invoice, but I didn't. That bill will go up and down because I will continue to see my therapist. It is helpful for my mental health. When I am healthy mentally, I can focus on things that need to get done instead of feeling sorry for myself and the financial situation I am in. I am able to focus on solutions.
Don't be discouraged when it seems things are going backwards - be encouraged to do better and start the movement forwards again.
That's all for today. My house is clean, so today and tomorrow I can focus on listing things for sale.
First goal: raise $5000 in savings. Shouldn't be too terribly difficult. I'm currently sending $25 a paycheck to my savings account and all my debit purchases are being rounded up to the nearest dollar and the difference is being put in my savings account. My credit union calls it "Stash Your Cash". Also, every bit of money I make off my side hustles are being put into savings and at the end of each paycheck, any extra money in my main checking account will be put into my savings account, effectively ensuring I only spend within the means of that paycheck.
Yes - radical steps. But with these rules in place, I have the potential and the power to save money every paycheck. So far, I have $80.01 saved. Now, that amount is going to go up when I get my tax refunds. And trust me, I'll be submitting my taxes as early as I can. I'm already starting to gather the paperwork.
This first step is important to me. As I've said before, having a strong savings/emergency fund is critical when paying down debt. I have to make sure that when an emergency does come up - tires for the car, repairs on the house, unexpected doctor or vet bills - I have the funds to take care of it and not use my credit cards. Once the credit cards are paid off, then and only then can they be used for their original purpose - emergencies and/or credit building. But that will be Stage 3 of my financial plan. I'm still on Stage 1.
Stage 2 is being implemented alongside Stage 1. Stage 2 is pay off the debt. As of today, I have $18,050.47 in debt from medical bills, credit cards, and loans. This doesn't include the mortgage payment. This is just to get rid of the extra debt I have and raise my credit score (a secondary goal in Stage 2). It is being implemented alongside Stage 1 only because I will continue to make minimal payments on my bills while I'm saving. So, that amount will go up as interest is charged and go down as I make payments.
Once Stage 1 is complete, I will still have some rules in place - saving $25.00 each paycheck and having Stash Your Cash squirrel away pennies with each debit purchase. But, any extra money I make will be now used to pay down balances, starting with the lowest balance. Any money from the side hustles and any extra money at the end of the paycheck will be used to reduce the debt.
Stage 2 is going to be more difficult. I know my debt amount is going to go up as interest is charged on my accounts. I fully expect it to. But I'm not going to get discouraged. In fact, it is going to encourage me even further because I will work harder to reduce that debt. And I'm going to celebrate every win. Any time I save money or reduce my debt, I'm going to celebrate.
Now, yesterday, I paid $70 on my therapy bills. And I was a little discouraged when the clerk told me how much was owing. I should have asked her to print me a copy of the current invoice, but I didn't. That bill will go up and down because I will continue to see my therapist. It is helpful for my mental health. When I am healthy mentally, I can focus on things that need to get done instead of feeling sorry for myself and the financial situation I am in. I am able to focus on solutions.
Don't be discouraged when it seems things are going backwards - be encouraged to do better and start the movement forwards again.
That's all for today. My house is clean, so today and tomorrow I can focus on listing things for sale.
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