Financial Goals ** le sigh**
I left this area last because personally it is the hardest for me. My goal has always been and will always be to be financially free. That means no debt, a healthy savings account and not be forced to do something because “I need the money”.
With out getting into specifics, a few years ago I made a bad investment that left me broke. Not just broke in huge amount of debt. I wasn’t living paycheck to paycheck. It was paycheck to ok my account will overdraft on Thursday but I get paid on Friday. There have been many sleeplessness nights , breakdowns, tears and ruined friendships. I went from have a near perfect credit score ( in the 800’s) to barely in the 600’s.
Now I have always been pretty good with money. There were times in the past when I carried a little debt but I’ve always managed to pay it off.
I can honesty say that the last 3 years have brought me to my knees. I truly could not see the any light at the end of the tunnel. I fell so quick and so hard that I didn’t realized who much trouble I was in until it was too late.
It seemed like I had no options and I didn’t know what to do and how to stop my spiral downward. I knew that I couldn’t go on much longer and I needed to find something, anything to help me get my financial situation under control.
What has worked:
A few months ago I read an article on The Budget Mom. She practiced a method called paycheck budgeting. The article method really resonated with me because I always did a version of paycheck budgeting, I just didn’t know it had a name.
I visited her website to learn more about her method and the cash envelope system. She has a ton of free resources and a getting started guide so I decided to try it out for 3 months to see it will help.
Y’ALL it has changed my life! Like foreal foreal. I have followed her budgeting plan to the T for the first 2 months and I found so many areas where I waste money. The first month of tracking my spending I found that I spent $600 a month on food! I couldn’t believe my eyes. I only buy groceries for 2 people and I end up throwing out food every week. I immediately worked to bring my food budget down to $400. I used the $200. Month extra to pay off a personal loan. Then I took that $200 and the $243 from my loan payment to pay off one of my smaller credit cards. I can proudly say my current food budget is now less that 300 a month.
What hasn’t worked:
The thing that got me into trouble was spending money I didn’t have for a payday that didn’t come. I would tell myself, ” you can send that money cause in 3 months you’ll get the money from ___________ ( failed investment) and you can just pay it off. 3 months turned into 6 months. 6 months turned into 9. 9 months turned into never.
I have made a lot of strides these last couple of months, but I know I have a ways to go. I know I’ll get to a place of true financial freedom one day and I can look back at my rock bottom as the turing point.
- Pay off 2 credit cards using the snow ball method.
- Grow my long term savings to $10,000
- Save for an all cash trip to Disney
If you get a chance please check out Kumiko at The Budget Mom. Her website is great and she has really helped me a ton. What tools do you use to help you budget? What are your fina cial goals and how big is the gap between where you are and where you want to be? Leave a comment below, its free! Day 11 donezo