sigh of relief

GREAT NEWS!! At 2:45pm today, I made a "specific payment of balance" on my final credit card (hsbc) of $617.77. I do believe this was my first credit card (either that or citibank)..in college. it has been following me around ever since..and although the account has been closed for quite awhile now, the balance hung around...until now! FINALLY the last payment has been made! and so, i will continue the journey to becoming debt free! i still have car payments (just over 2 yrs' worth @ 0.9%) and the debt due to the bank of mom and dad...but for now, i will CELEBRATE just a tiny bit more of financial FREEDOM!! :D

debt free by 30!

sunday night, while tackling my stack of bills, i came to the realization that i could be debt free by my 30th birthday! (including, or not, the money i owe my folks..but that's a different kind of debt..the interest free, no terms & conditions kind.)

how?! well, i have been carrying balances on 2 credit cards (one +3,000$ and one under 600$). the smaller one, i paid 1/2 the balance last month. this month, i bit the bullet and paid the remaining balance (~ 300$). what a relief! :)
so, now i'm left with one credit card balance. i realized that after doing the math, i could have it paid off within a year! (can you see my HUGE grin?!)
then, there's the car. i was fortunate to get 0.9% interest on a 3 yr loan so it is entirely realistic to try and cut it down to 2 yrs. i'll have to double up in the 2nd yr, but provided i get a job here soon, it's totally possible!
long story short, i can be...

DEBT FREE AT 30!!!!

financially focused

there are six weeks until the new year begins, but i am not waiting to begin to make some (well-deserved & overdue) changes in my life.

i've talked a little bit about the small debts that will be paid off by the end of december (brent, apt. complex) and how those will free up some money for me come january. but, for the first time (yes, an overdue first!), i am putting myself on a real budget. at first i thought i would limit myself to 100$ per pay period, but since i'm just starting out, i'm allotting 150-200$. this money will go towards groceries, gas, bad habits, errands, eating out, stool time @ stooly's..basically anything that isn't a bill payment will come out of this chunk. that frees up about 800-900$ per pay period to go towards bills & debt-payments. eventually, i do want to come down to 100$ for two weeks, but i think that'll take some getting used to for sure!

so, my daily spending budget/plan is that once my paycheck shows up in my account, i go get the allotted amount and that's what i use for my purchases. this is mainly so i quit using my debit card so much, especially for stuff under 10$ (i think that's stupid). having cash on hand ties into the next change, which is saving money.

i need to start somewhere....so, i read in real simple about an easy savings plan. every time you get a 5$ bill, you put it in a seperate part of your wallet. then, when you get home, take the 5$ bill(s) and put them in a special envelope. you open a savings account (at a bank other than where your other accounts are, so you won't be tempted to make withdrawals or transfers) with the minimum amount. then, every time you accumulate 50$, make a deposit. i think it sounds easy enough and will be fun to watch the money grow.

the easiest way to save money? take a break from looking for someone special. i used to do m.c, then i gave eH a try. eH is more expensive for month-to-month, so in december, i am going to cancel. it's the easiest way to save 50$/month. ouch! and, i usually forget so it automatically renews (and doesn't send the reminder until after it's been paid)..not this time, i've wrote it down in my planner!!

i really do believe that if i stick to these plans, i will be able to both pay off my debts and save money..which used to seem impossible. c'mon financial freedom!