improve my finances (previously: pay off debt and save)

Updated my net worth sheet and for the first time it has decreased. This is mostly due to one of my cards’ balance having increased significantly and my assets having increased only slightly. Now that Christmas is over, I hope to really make the next few months productive. I want to ensure a steady increase in my assets and decrease in my debts. Although my individual debts have varied, my total debts amount at this point is only slightly better than the first figure back in September, and that’s not good. My loan is decreasing gradually, one of my cards is at zero, the other will be at zero by the end of the month, which leaves me with the card I ultimately want to get below 10% of its limit at least, but I don’t know how I will do it without using my savings. I am thinking about ways to generate an additional income, thinking of items I have that I can sell, which I have thought about for a while now, and about any tax return I might receive (though I had hoped to put most of it towards my loan). But from here on, I want to stop going in circles and make sure my payments have real value and are not for nothing.

I haven’t been tracking my spending as planned. It has just been a little tougher lately but I read something recently that I think I will try. I will try to get a little pouch and collect all receipt for two weeks or a month and then enter them onto the expense tracker I have. This might help as I am not always able or I don’t always think of entering amounts every day. All I will have to worry about is keeping my receipts and entering everything all at once, once or twice a month. I just have to remember to ask as some places don’t give you receipts unless you do and note any spending for which I wouldn’t normally get a receipt (for example, a vending machine buy).

Besides my spending habits that need work, occasions always seem to set me back so I’m hoping to find a better way this new year.

Wow, it soon will already be time to update the NW sheet again. Time sure does fly!

I still don’t feel entirely comfortable with my progress. It always seems that when one debt decreases, another increases. I am going in circles and it is due to my thinking and habits. I always end up stretching the personal limit I set for myself, and exceeding that amount, which then leads to a new maximum amount not to exceed. I am making payments but because I keep accumulating new debt, my balances aren’t reflective of what I have put in.

I am determined to make 2010 the year I eliminate all debt, but I am worried because I have a job only up until a certain point and there are important decisions to be made before being able to look for a new job.

On a more positive note, I did end up paying the balance of one of my cards and almost half of another as planned. If only the last card’s balance hadn’t increased… I am further away from the 10% goal at this point. With Christmas on the way and with a setback with a recent pay, it makes it more difficult too.

It will take a while before this goal is accomplished but I will continue to work at it.

Yesterday I realized it was already almost time to update my net worth sheet. I knew the progress wouldn’t be as significant this month but next month should be better.

In terms of the assets, one increased a bit while the others remained the same.

In terms of debt, although a couple of debts decreased, two increased, so the total debt decreased only slightly and the percentage change was minimal as a result. Overall, the percentage change for the month was roughly a third of what it was last time. But it’s generally moving in the right direction, so that’s good.

I’ve decided that next pay, I will pay the rest of the balance on one card, almost half of another, and I will put what I can towards the one card I have been using. Next month I will put some more towards it, to try to get it closer to 10% of its limit, and then I will try to get my budget back on track starting in January. I am hoping I can go back to putting the original amount planned towards my loan (see below), which was the set amount + an additional amount, and also go back to putting the original amount towards my RSP, as I will only have a couple of months left before the deadline (I just realized I will only have two months and not three as I was thinking).

I was originally going to pay each credit card, including those with a small balance, off bit by bit so as not to sacrifice anything, but I want to take care of what I can now and not drag it on and to do so, this next pay I will simply not put the additional amount I had planned towards my loan and may do the same next month if necessary. I don’t want to slow my loan payments down but I think it’s important to do this. And in the meantime, I am not compromising the agreed-upon monthly payment.

Starting next pay, I want to get back into tracking my spending and I want to try to use cash as my primary method of payment.

I have been thinking about the debt to credit ratio. I have heard that it should be kept under 30% (though I have also heard 20%) and have been wondering if this applies to revolving credit only.
Instead of 20 or 30, I told myself I wanted to make sure it was under 10% on each of my cards. But then I realized 10% on three cards is a total of 30%! I’m not sure if it is looked at individually or globally, but anyway, the balance on one of my cards has been steadily decreasing and is not too far from being at zero again. I haven’t been using it at all.
Another card could use a few payments to get it under the 10% mark, but the balance is not very high. This is my only store card, and I use it on occasion, not regularly.
The third card is the one I have been using more lately. Why is it when one goes down, the other goes up? I really want to get this one to a lower balance. It is frustrating me that money that should be going to my loan is now going towards my credit cards, which should be at zero or only have a minimal balance, if any. I am thinking of ways to be able to put some more towards that card. But really, I am thinking that I need to make better choices.
I just wish I wasn’t sacrificing a certain amount for this. I am thinking quite a bit about the end of my six-and-a-half-month period and how I wish my debt could be paid because I don’t know what will come after the end of my contract. I am thinking about a possible income tax return I might get and how I would want to put that towards my debt.

I look forward to the day when I can confidently celebrate the accomplishment of this goal.

Still not quite where I want to be, but it’s a work in progress. It’s a learning process.

When I update my net worth later this month, at least two of my debts will have increased. Others will have decreased and one of my assets will have increased, but there is still work to be done.

I haven’t been tracking my spending lately and I need to get back into this. The template I was using was great, really helpful, but it is on Excel and I unfortunately don’t have Excel at home. So I can only use it at work and I don’t always like to have my personal information on a public computer. I will look into a way to perhaps get a trial or the actual software installed.

I have been thinking about my bank account and my monthly fee. It is one of those things which would go somewhat unnoticed (it shouldn’t have, I know) but which is becoming more obvious and is bothering me. I am looking for ways to cut unnecessary expenses, and I would like to see if I can afford to switch to a no-fee account. I would have to monitor things a lot more closely and wouldn’t have the leisure of going under due to the high overdraft fee if that were to happen. But maybe that’s not a bad thing.

I recently finally canceled an insurance I had on my Sears card. It is a good plan, but unnecessary now that I have disability insurance. I let it go on far too long, being charged a little over $10/month, and it was so quick to cancel it.

I think monitoring my spending and making wiser choices, continuing to focus on reducing my debts, and finding a way to deal with those unplanned expenses will help me in the long run.

I was just reading a publication about debt and it reminded me of something I had thought about before: using cash for my spending. It’s not as easy for certain things it seems, but I really should try to do this for the most part. I might have tried my little attempts at this in the past but I should give this a more serious go. I will do this with my next pay. I also just realized the publication offered a link to compare banking fees, which is exactly what I was looking for so I will have a look at that.

I was re-reading some of my older entries and on Dec. 26 of last year, I wrote: By the end of 2009, I hope to be in a better place financially. I won’t be where I would ultimately like to be, but I will no longer be where I am today.

I felt somewhat settled on a budget for the six-month period ahead but find myself questioning it due to my credit cards. I have never worried about paying the minimum or less as I have always paid more but with this adjusted budget, the amount towards credit card debt seems too low and I worry about not covering the minimum and extending this debt for too long and incurring unnecessary interest. One of my cards, I have not been using and have been steadily paying down, but it is the other two and really, the three combined, that I am concerned about. I would hate to pay less on my loan for a couple of months but I am wondering if that’s what I should do. So far I have been putting more than my agreed monthly payment.

I verified what my minimum balances would be based on my last statements.

On one card, the minimum payment will likely be under $12.00
On the other, it will be at least $20.
I have not checked the third yet.

I will not decrease my credit card debt by just paying the minimum. I am looking over my budget now to see what would be best.

I have not been keeping track of my spending since my last pay and I am left with under $2 in my account. I want to make sure to start fresh again with my first pay in November, which will be the beginning of the six-month period, and do my best to stay on top and manage things well.

In January, which will mark approximately one year after I really started to focus on this goal, I would like to reassess where things stand, and see what I have accomplished in a year’s time. There have been changes and setbacks, and though I won’t yet be where I ultimately would like to be, I already sense an improvement and that things are better than they used to be.

If nothing changes, I have six and a half months of a regular salary to count on, and I want to make the most of the income I know I will have. The net worth calculator offered a new perspective and was definitely a good thing. It feels motivating, and I can see that the main parts battling it out are my loan on one side and the RSP on the other. The combination of one going down and the other increasing (the right ones, of course) is a good one. Once my net worth is in the positives, even if I still have debts, it will be nice to know that my assets outweight them, that I not only have debt to my name, that I have made progress and am in a better place. I really am glad to have the little bit on the positive side that I do have.

I readjusted my budget slightly and hope it will serve me well for this next period. I know that my savings will unfortunately be sacrificed certain months due to expenses related to occasions that are not part of my budget, but I will put what I can and hope I can stay on track with the rest. I’m still trying to figure out what I will do for Christmas. I may make an exception and cut the areas I can for that month.

Phoned to cancel the credit alert plan today before they would start to charge me. It actually sounds like a good plan to have but I just don’t feel I can afford it right now. And that’s what I said when he asked the reason for canceling. He said I had until Nov. 6 or so, and did I not feel I could last until then? What would be the purpose? I said, no, I would prefer to cancel. He said, it is discontinued and I just want to let you know you are now at high risk for fraud. Gee, thanks! I’m just glad I didn’t miss canceling before the free period was over.

I realized tonight that my credit score was not actually as bad as I thought. I think that because I was under the ‘fair’ category, which is the next one after weak, I didn’t think it was so great and because it seemed my score had increased, I somehow thought this was worse. It might actually have gotten a bit better if it did indeed increase. Ideally, I would like my score to be at least 800, and eventually higher. But it was nice to know it wasn’t so bad.

I have exactly $0.11 left in my checking account. Thank goodness pay day is tomorrow!

I charged two purchases to credit cards in the last few days, and though they were not just silly things, I wish I didn’t have to do it. Today I renewed my travel insurance which is important. I was trying to find out if a single trip or shorter term plan would be less expensive and of course it was but not really better when you consider the cost for a year, which is what I had before. So I finally renewed what I had had previously, which cost just over $80. But I know it’s important, and at least I won’t have to worry about it for a year.

I also purchased a pair of winter boots and two pairs of pants to try. I’m not the biggest shopper so sometimes it’s better for me this way. I saw a couple of other clothing items that I thought I might get, just because I don’t have very much and could use things. But naturally I am thinking about the cost, and not wanting to see my debt having increased when I re-calculate my net worth next month.

I can expect exactly 6 1/2 months of income until things change, so I want to make the most of that time and do the best I can.

Today I updated the figures on my net worth spreadsheet and calculated the percent change, and it increased 12.58%. That was motivating to see. Everything was on the right track except two debts which increased slightly.

I keep re-working my budget, trying to see if I can possibly put more towards my debts, but I might end up overextending myself. There are certain things I am less willing to modify, and the debt payment is the one thing I feel I can adjust. But it’s hard to think about putting less. I just want to put as much as I can, but I find I struggle when it comes to the expenses I haven’t budgeted for, such as occasions (Christmas, birthdays, weddings, etc.) and occasional things like winter boots, and travel insurance. My savings will already be compromised in future months due to some of these things.

I was in the minuses again on my account… I lost track of my spending a little bit and there was also a birthday to buy for and then I just made some other silly purchases. I was at -6.01 when I first went under, then made a purchase of $39.78 which brought it to -45.79. Again, I think I somewhat allowed for it knowing I would be depositing a check for almost $130, most of which I had hoped to put back towards my savings but now, because of the overdraft and other expenses, I won’t be able to. At least at the moment, I am no longer in the negatives with just under $10 left.

So I am still struggling a bit with trying to manage the spending aspect and finding a budget I can feel satisfied with but the net worth calculator shows me I am somewhat on the right track. I want so much to pay off as much of my debt as I can, while I can, but now I am reminding myself that if I have at least 3/4 paid off, that will be okay too. Even if it’s not paid off completely before a certain time, it’s okay. But as I write this, a part of me feels it’s not fully okay because I feel now is the time to take care of as much as I can. It also makes sense when you take into consideration the interest. I’ll have to see what I can do.

$3.07 left. I lost track of the spending for a little bit there. Fortunately, I received a cheque, a refund that was due, and most of it will be going back to my savings account but I will use a portion towards groceries and hopefully be able to make it to next pay.