The Plan…
Over the last 8 years, I’ve been trying to pay off my debt. The fact that I’m still in debt – OK, let’s be honest, I’m way MORE in debt – shows my financial management is a tad off.
I started taking an amazing financial class a few months ago and was given some helpful ideas on how to manage my money.
So what did I decide to do?
I designate every single penny.
Yes. I said, PENNY.
Every dollar, every dime, every penny, goes into an envelope for specific expenses. Once the envelope is empty, I have to wait until the next paycheck when the envelope is funded again to buy anything. This method prevents me from living above my means.
If my conditioner runs out before the ‘haircare’ envelope is full again… guess who’s using hand soap? If I can’t suck it up… I’ll never get ahead.
Before you say, ‘She’s all talk. When it comes down to it. She’ll cave!’ take this into consideration…
I made waffles for dinner out of a powder mix … even though we had no butter or syrup. And those waffles were preceded by an appetizer of ‘Funyuns’.
Let’s just say… I’ll be excited to land a job with enough pay to avoid another cornmeal fried onion wannabe and powdered anything.
Over the next few weeks, I’ll share more of my specific plans of action to reduce debt. Everyone has different methods but this has worked for me. I’m making 30% of what I was making a few months ago and yet I’ve still managed to save $1,500 for an emergency fund over the last 8 weeks.
Step one was the designation of every penny. It worked for me and I’m making some fabulous headway on my debt.
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Posted: November 25th, 2008 under Debt Reduction.
Comments: 5
Comments
Comment from Nicole
Time: November 25, 2008, 9:42 am
With the food choices you might want to put extra money in the clothes envelope for some bigger pants:) Way to save!
Comment from Emily
Time: November 25, 2008, 6:40 pm
Yes – please share – let us all be honest – we are all struggling or will be struggling in the next few months – and it appears that YOU can do it. I think that is inspiring. And landing a job with ENOUGH pay – that is the wish of all of us right now – but we are all struggling through – and any tips/ideas/help/support I would gladly welcome. Yes – it can be done and you are proof. Not to mention the wonderful lessons you must be learning!! And the patience – something we all need more of. Rock on!
Comment from Michelle
Time: November 26, 2008, 5:46 pm
Very, very cool – I should try something similar, but the idea of nothing but cash scares me for some odd reason.
Can’t wait to hear more of your techniques!
Comment from Adriel
Time: December 3, 2008, 1:36 pm
You mention that you make 30% of what you used to make months ago. Could you mention what it was that you did? and did you get laidoff, fired, or something?
My friend now makes like 25% of what she used to make, but she used to be a stripper. Not that there is anything wrong with being a stripper, but it does not carry the same weight as losing a business or a dude in Michigan who was a major car designer to having to resort to delivering newspapers after being laidoff.
Comment from Rebekah
Time: December 3, 2008, 11:14 pm
Sadly, I wasn’t a stripper. ; ) The company I worked for went under. I was in the construction industry – we all took a hit. Some bigger than others.
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