I’d like to believe “Don’t Chase the paper. . the paper will chase us” NOT.THE.CASE.
One thing about being disorganized, all our finances are out of whack. I’m young and dumb. I’d rather spend my time doing something fun (trying on makeup) than sitting here balancing checks, transferring funds and paying bills. I HATE IT. I’ve tried so many budgets, but they just don’t stick. It’s not that budgetting doesn’t work. . it’s just not fun.
I’d like to try the envelope system : where you’d put money into an envelope and only spend what you have – but I’m addicted to plastic. ARGH!
We’re slowly on our way to financial freedom. We’re barely meeting baby step #1 : Save $1000 in baby emergency funds. But in order to do that – we have to pay everything that’s past due and start fresh. That’s HARD. We have a few past due amounts and with all this paper chasing I don’t think I’m gonna come out alive! We really need to tighten our belts : no frivolous spending. No more traveling. If we live like noone else, I believe that we can be like no one else.
For starters, I need to create a plan.
1) Create a budget and stick to it. Cash out the misc expenses and spend wisely. Keep all receipts and log DAILY. I know daily may seem pretty intense (It is) but if I won’t do this daily, I’d shop my heart out. I also need to prioritize expenses & think about the things I buy. I’m lucky that hubbs and I are more likely to be on the same page : We just need to find time to sit down and talk about our finances. He works 2 fulltime jobs (graveyard&day) and I have a long commute : so it’s hard for us to find time for each other . . . harder to even talk about finances.
2) Keep up with current bills. I had a habit to sit down and do expenses every Wednesday (enough time for me to preview my pay check & pend payments online) I need to do this again. I don’t like auto-drafting payments, since I can’t keep track. Using this method makes me log it into my paper ledger and makes me aware of the working balance.
3) Pay past due accounts ASAP. Just like the debt snowball : start smallest to largest. If the creditors would allow us to pay partial payments : so be it. It’s embarassing, but I figured if I tell the world about how stupid this is, I’m hoping I’d have the guts to clear this out of our to do list. I have a bonus & and extra paycheck in October, but I’m hoping that wouldn’t be that long. Yes – our credit is SHOT. . but we’re not planning to use any more credit cards within the next 3 years while we clear our debt.
My projects to report for next time :
- Create a Financial Procedure : step by step. Easy enough for hubby to follow when I don’t feel like doing anything =)
- Create an active ledger to update daily.
- Create an Accounting sheet for each payable account – this would help me eventually track our debt snowball.
- Create an envelope system – I’m really praying that this would work. I would make it a routine to go to the drivethru BofA ATM on Fridays to refill on Enveloped Budgets : Gas, Food, Home, Fun & entertainment (we need some fun) Refills would typically happen every other week on paydays AFTER paying the necessities & after budget is balanced. Left Over Envelope Money would go into a bucket and deposited at the end of the month to slowly rebuild Baby Emergency Fund.
- Create a bill Calendar : Something I’ve always failed to do. One of the fears of paying bills is I don’t ever know when they’re due or when they would draft! As soon as I have a master bill plan & calendar – payments, timing and budgeting would be easier.
I have a headache and I’m stressed. But I’m too blessed and I can do this!!