Now that I've reached my pre-pregnancy weight, and am narrowing in on my pre-marriage weight - we've decided it is time for another challenge. And this challenge is pretty big for us - it means giving up some of life's little luxuries....which we so enjoy!!!
We've had credit card debt since we got married. We stopped spending on credit cards quite awhile ago, but have made very little forward progress in reducing the debt. We've schemed many different ways to pay it off - but always had an excuse to delay any action until later. Well - the time has come and we are getting down to business. The car you see above we are selling and will have just one car to share. This means a savings of ($4,000 for the car & $450 in car insurance)!
That takes us about halfway through our debt. Then we are dedicating a budgeted $300 a month to debt as well as what is leftover in any envelope. (We just started the envelope system this month and it has been such an eye opener and SOO good for us!) With Alex's yearly bonus that comes in February, hopefully some tax return, my Ebay profits (I sell used clothes on ebay for a commission for friends and family), etc. we may just see the end of credit card debt in 2008!!!
We look back now and wondered why we didn't do this sooner...but it is always easier to look back than forward. Half the purpose of posting this goal is for accountability. I know if we tell you all about this - you'll be asking - checking in - and we will want to be able to report progress! So for now we are making our own bread, buying canned domestic beer and saving imported bottled beer for special occasions, making our own baby food, buying all our clothes used, I'm cutting Alex's hair, I'm growing my hair out for Locks of Love, turning out lights, not showering (just kidding) rinsing out plastic bags...I know I know...desperate measures!
My mom has given me this HUGE binder of all her issues of "The Tightwad Gazette" - I can't quite get into them yet...but I'm sure the time will come!
We both actually enjoying the new level of creativity that living within a budget requires - although I am regretting buying a case of "Steel Reserve" beer...thought it could be good...yuck...will be sticking to Bud, Miller, or something familiar in the future! Check back and I'll let you know how we are doing!
2 comments:
Good for you guys!
We have been using the envelope system since we got married and I truly believe that is what has enabled us to get through medical school, and have 3 kids in medical school, without any credit card debt!
I'm excited for you guys! This is our goal for 2008 too- we had VERY little debt before getting transferred to PA. Got seriously hammered on the sale of our home. Nik has been slightly freaking out that his credit card isn't paid off (this is the 1st month in his life).
Good luck, you'll have to keep us updated!
What is the envelope system?!
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