She couldn't have said it any better. Holidays are fast approaching and so is the pressure to buy gifts, go to dinner and coctails with friends and family, and make pounds of cookies and treats. Somehow, I seem to always go broke this time of year...
I would really like my year 2012 to be different. I am the first to admit that I'm terrible about spending money. As a waitress and bartender, I find the cash I earn disappears just as fast as I make it! I really need to create a system to get back on track with my bills and for all of my debt to vanish into oblivion. I honestly don't have a ton of debt, but I can only imagine the difference it will make in my stress levels and overall happiness if it were less existent or not at all.
This does take time, organization, and patience. I know I'll have to cut back on some things, but it will definitely be worth it. This is my plan.
The Naughty List
Make a list of all the debt you have acquired. This might be a little overwhelming, but you can't run from it. The reality still exists. The first step is admitting the truth. Yes, I do have x dollars in late fees because I don't have the guts to open these student loan bills because I know I can't afford it... I've been there. Write down every single last bill you can think of that you owe and the amount on a piece of notebook paper.
Example:
Rent $375
Electric bill $135
Wells Fargo loan $10,000
..etc.
My total debt, including my student loans, comes to $13, 785.
Definitely overwhelming, but when I think about it, if I work really hard, I should be able to pay this off in a year. I work 60 hours a week and make decent money at my jobs. Once I can reach financial success, I can progress to getting more school, and a better job in the business world. The next step is to figure out when I need to get everything paid off.
Date Time
Next to each debt, write when and how much is due.
Example:
Rent $370 due January 1st
Electric bill $135 due December 22
Wells Fargo loan $200 due December 12
...etc.
Time Line
Now, rewrite the list in order from what needs to be paid right away and what can wait a little bit.
Example:
Phone bill $75 due asap
Wells Fargo loan $200 due Dec. 12
Electric bill $135 due Dec. 22
Rent $370 due Jan. 1
Add up all of the money you owe this week, everything owed next week, and the week after, etc.
Example:
Phone bill $75-- due now
$200 Wells Fargo loan
$150 Energy bill
______
$350 -- next week
...etc.
Save and knock it out!
Now you have an idea of how much money you need to make each week to get caught up. Split it up into days. If you owe $350 next week, split that up between shifts you work and it will show how much you need to save of the money you earn before you can spend any money on extra things (drinks, movies, junk food, etc.)
Example:
I work eleven shifts a week. A general estimate on how much I make each day looks like this:
Mon: $50
Tues: $25
Wed: $50
Thu: $75 and $80
Fri: $60 and $40
Sat: $50
Sun: $50, $40, $40
All of that adds up to $560 in a week, give or take. I would have an extra $210. What I can do is save half of my extra in a seperate savings account and use the other $105 for things such as gas, groceries, and fun time. You could also use the saved half towards a large debt. I have a $10,000 loan I'm paying off. I could use the extra towards that bill as well.
Other Tips
*Keep your notebook in a safe place, where you can access it regularly.
*If you do have a spending problem, try saving all of your receipts and highlighting through what you didn't need to buy. Try not to make the same mistake twice.
*Use a big calendar so that you can actually visualize when things are due. I love my dry-erase calendar from Wal-Mart. It looks kind of like this:
image from Google*Do your best to pay bills in advance. This will build your credit back up.
*Watch out for little things. I try hard to stay away from dollar stores, fast food places, gas station candy, etc.
*Use coupons.
*If there's something you really like, but can wait a week, see if you can find it online for a less expensive price.
I know I'm definitely looking forward to not having to worry and stress about my debt. Hopefully this helps those of you going through the same types of things. Good luck! Please comment if you have any questions.
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