live debt free

I am sick and tired of paying off my credit cards and running them back up only to pay them off again. It seems like a vicious cycle that is difficult ot get out of. I am determined though and will live debt free.

So one week from today I start the envelope system. I have very low income for 3 months until I get hired on full time after three months temping, but I want to make sure my debt does not get bigger. So I will spend $30 week on groceries, $15 wee on gas, and $10 a week on fun. When there is no more $ in the envelope I will not be able to buy any more. This will be a big challenge, but I am up for it.

I have $4000 in credit card debt, which has gone up from $2000 in 6 months. I just found a new job after going two months with no job. I want to pay my credit card debt off by 2010. This is $333 per month, I can do this. I need to find a part time job that I can put directly toward this goal, and quit digging my hole deeper my being extremely dilligent with my spending. I want to try that envelope system. I will start the Envelope system Dec 1. I have a car payment till 2012, and if I can pay off my cards. I can start making bigger payments on my car. I would like to have $6000 in savings by 2012. And I have my first ever 401K starting in 9 months, so I want to take advantage of that as well. So by 2010: No credit debt By 2011: Pay off car 1 year early at least By 2012: Have $6000 cash in savings account . I can do this!! After this, I want to never take a loan out on a car again and never go into credit debt again, it is just a better way to live to pay only for what you can afford. I’m sick of living with credit card debt looming over me!

And then to live within my means – what a concept.

Credit has such a powerful hold on our society, and I suspect I’ll always have at least one credit card, but things have gotten out of hand. Tis time to start to focus on paying down my debt and not using my credit cards at all!

That’s the plan – let’s see where the adventure takes me!

which is good debt or so I’ve been told…

I have a plan. I am going to have my credit card paid off by 12/08. I will have my car paid of by 5/10. I will have a $15k emergency fund by 4/11. I really can do this if I will just stay focused and not get discouraged and give up. This time frame will have me with nothing but a house payment before my daughter goes to college. If I can just be disciplined for a mere 3 years, I will be in such good shape financially. I really want to do this, it’s just so easy to get discouraged and give up.

I am trying to take this goal very seriously again. I have been way off in the ditch for months now. I will cut myself some slack since I have been going through a divorce and struggling with a lot in general, however, the pity party is officially over and no more excuses are acceptable. I have got to start working to get myself out of this mess. I am 38 years old and I need to get my financial plan together. I am going to have no more credit card debt by the end of this year, and I am going to have my car paid for by May of 2010. I am going to get out of debt and stay that way if it kills me. I have been selling on eBay again and taking stuff to pawn shops and consignment shops to bring in a little money. The main thing is to change my thinking and my m.o. right down to my core. I must become a new person that is mature and responsible. Impulse spending and irresponsibility is no longer an option for this girl.

I am trying to live the Dave Ramsey plan again. I started my envelopes again when I got paid on Monday. It is not easy to live disciplined. I am really going to try to get my shit together.

Two Credit Cards to Go!
Then on to Student Loans.

I cancelled a credit card, leaving me with only one card now. I am going to keep the one card, but that’s it. I am getting my finances to a managable level. There is no reason for me to carry debt other than a mortgage, ever. I should be able to live well within my means. I am going to get my car paid off and the balance off this last card paid off and then focus on saving, saving, saving. I need to get $10k in my money market account for an emergency fund, then I am going to work on my contributions to my ING account. I have a plan, I just have to stick with it and work it.