Good morning! I can’t wait to share this year long project with you! I am so excited for this, mainly because I am organizing my entire life this year. 2013 is going to be about organization and getting my life on track in EVERY area. I am going to eliminate so much stress in my life and feel so much better about how effective I am as a wife to Dusty, a Mom to my kids and the type of friend to others that I want to be. I am going to take back simplicity and be intentional in everything that I do. I am going to have so much more fun with my kids while being the BEST Mom that I can be.
Will you join me? Do you crave this simple and intentional lifestyle too? Let’s do it! Start by purchasing your own e-copy of One Bite at a Time HERE. If you are joining in late, don’t worry about it! Just jump in! Also, let me know if you are participating! I would love to help feature you! Lets be as supportive and inspiring to other Mom’s out there who want to take charge of their life in 2013!
This week we are making a debt free plan.
I wrote this post about 6 months ago HERE about how we paid off 39k in 13 months. Well, I am going to be painfully honest here. We went back into debt again. This is a hard post to write. But I want to be honest so that I can hopefully help other people not make some of the same mistakes that we have made.
This year was a very busy year for us. We paid off that debt, moved, and cut our income in half. We got lazy about staying on track with our budget. In fact, I never checked our statements, didn’t pay attention to our credit card or our checking accounts. I thought we were good because we paid off all of our debt. We weren’t. Then in October I realized we were in the hole again. About 9k in the hole.
One thing that I have realized is that you have to stay on top of your finances daily, and most definitely weekly. It helps me best when I add up all of our spending daily on a weekly expense tracking sheet. When you see the numbers visually and see that you spent $300 in one day it really makes you re-think your spending. At least for me it does.
It is also best if your spouse is involved in finances with you. It eliminates surprises in bills and keeps you both on track. Plus it empowers you both to work together. In the past when only one of us was on board with finances we weren’t nearly as successful as when we both worked together as a team.
Making a plan to get out of debt can be a lot of work. It is worth it. Because being debt free is a great feeling. Even though ours was only short lived.
So, what is our game plan?
We are going back to what we know works for us which is War on Debt. You can find it HERE. I think the program was about $99 and we found that it was worth every penny and easy to follow. In fact, it paid for itself for our family by just one month of our grocery savings alone. My only problem with it is that we stopped using it and went into debt again. This time I won’t be stopping and will continue following it. Lesson learned!
One of the painful things we had to do was go back through our statements and highlight anything that was FAT. FAT is things that are luxuries and not necessities. Adding the fat up and looking at that amount always makes me sick. We wasted so much money when we weren’t paying attention.
Here are some of the basic strategies that we are doing:
- Aldi’s for all groceries (make list and stick to it)
- line dry our clothes as much as possible
- use up everything in our house before shopping
- take an inventory of everything we don’t need and list on craigslist or ebay
- track every penny spent on expense sheet
- guard our budget and track daily
- stay home as much as possible
- keep utility bill low, keep thermostat down, use fireplace a lot
That is just our action plan for right now to get our debt paid down. Will you join me? Do you already currently do War on Debt? I would love to know your story and celebrate with you and get debt free together!