It’s amazing what sitting down and really looking at spending and money habits can do to your financial life. So last year I had posted about really wanting to focus on getting out of debt. It was a terrible feeling and I was at my wits end and decided then and there that I would focus on getting us out of debt.
Guess what? We have made a major dent in our debt.
Here’s the last update I had posted. So where are we today?
We are not living paycheck to paycheck anymore and we have not used credit cards at all. If we don’t have it we don’t spend it!
Let’s see, I worked on a budget and kept to it pretty closely. I paid all the bills first before we did anything else and I am happy to say we are on our way to being debt free. We paid off so much that we actually can breathe again and I am not as stressed. We have our mortgage, student loan and one loan left to pay off and we are selling our RV this week so that will be one less debt we have to worry about and another $237 to go towards our debt. I’m so proud of our success and although it was not easy it has been well worth the struggle. I’m not stressed about money any more and I’m not feeling overwhelmed when the kids or Hubby asks about our spending.
We’ve paid off about $8,000 in debt in the last year and I know that doesn’t seem like much but with all the interest and stress it is like a million dollars to me.
We are actually in a better place when it comes to our financial life and when we talk about money we don’t get stressed out or have an argument. It feels good. Now we have to focus on the student loan debt and need to start saving a little so I can buy a car in the next year. Jacob will driving so he’ll get my car. I’m thinking it won’t be a new car, but that will all depend on where we are at that point.
I shopped for school clothes and school supplies this year and we did not use credit cards, it was nice cause I had budgeted how much we needed and I set it aside just for that. I started using a CapitalOne360.com online account to save for these items and I am so glad because it was easy to set up an automatic transfer every paycheck and we didn’t miss it. Now I’ll just continue that habit for Christmas and we will be sure not to have to use credit there too.
If you are in need of some help and want to get real with your money let me know. I created an awesome spreadsheet that helped me manage our money and our debt and it kept us accountable. I’m always here to help.