So back in December when I racked up some bills due to Christmas-(like I didn’t know it was coming?) I began to take a look at where our money was going and what we could do about it. I started reading Dave Ramsey’s book Total Money Makeover. So we began at step one which is to set up a $1000 emergency fund. Did it! Then we began paying off our debit using the snowball method of paying the credit card with the lowest balance first -with as much as you can, then just paying the minimum on the rest. The idea is that once you payoff that card you would take what you were paying on that card and add it to the minimum you were paying on the next and thus the snowball begins.
Well, I was unprepared for the holidays. I racked up a few more bills and then one disaster after another happened and bye bye emergency fund. So, we are starting at square one again.
1. We began by looking at the spending we tracked back in December and November. Our big money pit – take out/ eating out! Yikes- now that is how I began doing my meal plan Mondays. On Sunday I do a pantry check and then check the sale flyers. That is how I’ve been planning my meals for the week. We really have been saving money this way.
2. I did a credit card analysis to get a picture of what things really looked like and how long it would take for us to be debt free again. Here is the calculator I used:
I did each card and printed out a copy of each. Yes, this was scarier than I thought, but real eye opening.
3. We are only using cash. As of this year we haven’t made any credit card purchases, and hopefully won’t.
4. We will be rebuilding the fund again, although it will take longer this time due to the fact that my boiler broke, I had an oil delivery, my oven is broken and my car needs to have it’s transmission serviced!
5.I will be seeking more reliable part time employment- right now I do some mystery shopping, but it’s few and far between. My goal is to make $200 a month. I’m up to $13 now-yikes I better get moving.