Tuesday, September 23, 2008

Getting out of Debt

Quit borrowing. Check.
Save 1,000 in cash for “emergencies”. Check.
Pay yourself first. Pay for your shelter, food, utilities, and transportation. If there is any left over, pay your unsecured debt using the debt snowball. Check.
You can not borrow your way out of debt. Cut your lifestyle and live your wage. Budget what is coming in and decide on paper, in advance, before the month begins how it will go out. You can not borrow your way out of debt. (Just a reminder to myself.)

We are still working on cutting the lifestyle, tuning the budget, and getting ready to start spending it on paper in a weekly cash flow plan.

The following is not perfect but I am making progress. Still using some rationalization, but less than I used to.
More notes to myself... (borrowed from someone else trying to get out of debt. I took it all because I think that it's good to revisit those things that you may have rationalized not doing before):
You must make hard, common sense choices to get free of the debt you’ve incurred. After you’ve quit making excuses, rationalizing and making the decision to quit borrowing, reevaluate your lifestyle. What about all those necessities you can’t live without? If you’re serious about getting out of debt, if you’re tired of the stress that comes along with being in such debt, you’ll live without them. Go to the bare bones. Turn off the cable, do you need a land line and a cell phone? Cut down your groceries and buy generics. Don’t eat out. Don’t eat out. Don’t eat out. Cut all unnecessary spending. Starbucks got way too much of my money. Turn down invitations to birthday parties or group vacations. Lunchbag it at work. Don’t eat out. Get a 2nd job or work overtime. Have a yard sale. Sell something. Come up with the money before you borrow more. You can not borrow your way out of debt. In the end, you have to make the decision either to keep living a lifestyle you can’t afford, and borrowing, or to live your wage, pay off your debts, and be free from these financial burdens. Utilize available resources such as family member who has a talent for finding the deals on the stuff you are going to buy anyway! Take the time to plan!

3 comments:

Trish said...

Hey! Did I just get a nod on your blog? Maybe that's self important of me to think so. You probably know lots of people that can help you find good deals. :)

My newest "personal motto":
We are living sacrificially today to pay off our past and change our future.

Heatherslife said...

Sounds like you guys are ding awesome. I am happy to say that while I am still in debt I am finally getting rid of it and I forced myself in to doing it all by myself. Work two jobs, Don't eat yummy things, Sit at home even when you wanna go drive some where, say no when friends invite you to lunch and movies.... It sucks lol But it feels great!

Christy said...

Lol, Yep, that was a definite nod to you, clever girl!

The big plunge...

Starting Weight 193.8
Week 1 194.2 - +.4
W- 2 190.2 - -4.0
W- 3 186.4 - -3.8
W- 4 186.2 - -0.2
W- 5 184.0 - -2.2
W- 6 184.5 - +0.5
W- 7 185.0 - -0.5
W- 8 183.2 - -1.8
W- 9 180.0 - -3.2
W- 10 183.2 - +3.2
W- 11 179.0 - -4.2
W- 12 177.1 - -1.9
W- 13 175.1 - -2.0
W- 14 171.6 - -3.5
W- 15 169.9 - -1.7
W- 16 168.4 - -1.5
W- 17 165.4 - -3.0
W- 18 161.9 - -3.5
W- 19 165.4 - +3.0
W- 20 163.0 - -2.4
W- 21 165.8 - +2.8
W- 22 162.0 - -3.8
W- 23 159.8 - +0.4
W- 24 158.0 - -2.7
W-k 25 156.4 - -1.6
W- 26 154.3 - -2.1
W- 27 153.9 - -0.4
W- 28 152.0 - -1.9
August 30, 2009
W- 29 149.9 - -2.1
W- 30 147.7 - -2.2
W- 31 147.1 - -0.6
W- 32 149.5 - +2.4
W- 33 151.3 - +1.8
W- 34 150.2 - -1.1
W- 35 150.8 - +0.6
W- 36 150.3 - -0.5
W- 37 149.1 - -1.2
W- 38 149.8 - +0.7
W- 39 150.1 +0.3
W- 40 156.3 +6.2
W- 41 153.3 -3.0
W- 42 152.6 -0.7
W- 43 152.6 -0.0
W- 44 150.7 -1.9
W- 45 152.4 +1.7
W- 46 153.0 +0.6
W- 47 152.3 +0.7
W- 48 150.1 -2.2

W- 49 147.5 -2.6
W- 50 146.3 -1.2
...
...
W- 53 151.0 +2.0
W- 54 149.3 -1.7
W- 55 144.9 -4.4
W- 56 144.1 -0.8
W- 57 140.0 lbs. Goal!!!!