Saturday, October 20, 2012

One year of debt reduction


Today marks the one year anniversary of my decision to finally tackle my finances and mountain of debt.  Many of the changes I’ve made over the past year seemed pretty insignificant against the mountain… how much does remembering to use a coupon really save, is a couple degrees on the thermostat actually worth freezing/ heatstroke?  Some of the changes I needed to make seemed impossible… could I really give up my junk food addiction, could I learn to want less stuff in a commercial world? 

I stuck with it for a whole year and now I get to look back and see how far I’ve actually come!  I haven’t perfected my lifestyle by any means; I still struggle with eating out, I still give in to “wants” more than I should,  I still forget to bring my coupons and I still debate the thermostat setting.   But now for all the times I fall back to bad habits there are at least ten times as many occasions that I do the right thing without pause.  I’ve also learned how to keep and stick to a budget, started saving for emergencies, and increased how much cash I bring in by focusing on side jobs.

In the past year, I’ve paid off $12,435 of my debt which is 19% of the total debt and roughly on track to the 5 year debt pay-off goal I originally set.  I’ve also already met my goal to set aside $1000 in an emergency fund by the end of the year. 

The next year of debt pay-off will be pretty interesting since I’ll also be saving towards the wedding with S.  I’m still determined to have all of my “bad” debt (car and credit cards) paid off by the end of 2013 so that’s going to mean a small wedding budget coupled with hard work and diligence on keeping spending in check.  I’m thrilled with what I’ve accomplished in the past year and motivated to keep the momentum going in the next year!

2 comments:

  1. Way to go! At least you are clearly succeeding in your goal to pay off your debt. The fact that you are saving money shows how much you are committed to finishing your payment term. You are in the stage where you need to start clearing off your debt and start cutting back on unnecessary expenses for you and your partner’s future. Here’s an idea: why not start keeping records of your income and expenses so you can track down all your due payments easily?

    Jesse Baars

    ReplyDelete
  2. It’s great that to know that you’re taking reins of your finances in hand. I’m so happy for you. I know it is not easy to manage finances just like that. You’ve to keep a lot of things in your mind. Moreover, you’ve to use coupons, skip eating outs, forget about purchasing luxury items, etc. It is a pain. However, the pain is worth it. You can sleep peacefully in every month. You won't get harassing calls from creditors or the collection agencies. You can have a crisp and clear credit report, which in turn will help you lead a stress-free financial trip.

    ReplyDelete