Life in Tee Harbor, Alaska

Paying Down Debt and My Spending Diet

I've been working hard since December to pay off debt.  I'm following Crown Financial's Money Map - I'm on destination 2 which is to pay off your credit cards and build up savings to one month's living expenses.  If you haven't heard of them, you should go check it out.  You can listed to their radio program from their site - Money Matters.

Having a spending plan has helped so much!  I can see exactly what I'm spending my money on (lots of craft stuff!).  What I worked out for myself is to pay cash for most things - I keep envelopes in my purse.  Each envelope is labeled with what the cash in it is for - food, gas, crafts, clothing, gifts, misc., eating out, etc.  Each payday, I replenish the cash in the envelopes.  Much of my monthly income goes toward paying off debt - credit card, truck, 401k loan, home loan - $1950 per month.  Wow, just think if I didn't have any debt and could be putting that in my savings account... 

Like I said, it is working well for tracking what I spend my money on and limiting how much I spend.  I record my receipts once a week in the computer program I bought.  It just amazes me how often I buy something - whatever it is - just how many times I pull out money and pay for something.  So I have decided to try a spending diet - to limit the days I spend money.  I am going to try to go until Friday without spending money and see how I do.  I am an impulsive shopper - recovering impulsive shopper that is , so this will be a good step for me.  I'll let you know how I do!

Untitled Comment

4:02 AM, Tuesday, March 6, 2007 .. Posted by BlueApple

You can do it, you can do it, you can do it! I'm right there with you! We are trying to pay down debt and, with God's help, be debt free in about 4 years. Sometimes I just want to get lazy and not work so hard, but four years are going to pass anyway...I just keep reminding myself where I want to be at the end of those four years. Good luck!