17 January 2013

The Get out of Debt Project

So we are starting 2013 with a Get Out of Debt Plan. We hope to be debt free in a few years, its all in time. We did not get into debt over night and there’s no way we are going to get out of it over night.

But we are making a lot of changes and doing different things different ways to try to help us. As we set up these projects and different ways, I will be sharing what we are doing and how it’s working and if it works for us.

Our first plan is to use cash when possible and stop relying on our debit cards. They are too easy. So I am working on money envelopes to help us with the items we can pay cash for and start there. I still plan on paying bills online however eating out, misc buys, groceries, and other items will now be cash only items. If we are out and decide we want to eat out, if I don’t have the envelope on me for this, we are not going to do it.

Our second plan is to use our extra income, our 2nd jobs to go towards debt instead of our 'extras' like we have been. We have been using money from our account and our 2nd jobs for our 'wants', that’s time to stop. We have to start using this extra income as a way to help our debt ratio. So now when 31 commissions come in we will be putting it towards a credit card or unexpected bill that comes in.

Getting into this mind set will be huge for me. I was never really raised on a budget because my family like many lived week to week and paid what they could but always made sure we had food and shelter. There was no extra money to do much or buy much. When we did have a little extra, we spent it on what we wanted. I want to put that little extra towards something to get it gone and done, out of our debt spreadsheet.

I have the snowball spreadsheet on the computer, just need to plug everything in. I have different worksheets to keep us on track and of course I want to make up those money envelopes to help us.

We have no kids on formula and only one in diapers so our baby cost has gone way down than it was a year ago. We are getting closer to getting a few things paid off and we can see the light but its going to take a lot of hard work on our part.

We cannot wait to get to the point where we can begin working on our 'wants'. We have so many projects we would love to do but are waiting until the debt is gone before focusing on the other stuff. Hoping this new venture gets off the ground running and continues to make good habits for me, Kenny and the girls.  

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