How I [would] spend

I've been dreading blogging on this topic even though (I think) it was one of my suggestions. The accountability that comes along with blogging with my friend Mathnerd is quite helpful in getting past procrastination! Part of my reticence in blogging about my spending habits is that I where I am currently is not my ideal. Growing up, the financial situation was a bit lean and I remember promising myself that when I had a "real-grown-up" job that I would be able to buy what I want.  Once I entered the working world, I discovered that it was not that easy. But I had credit cards! And soon I had credit card debt.  I was ashamed of this debt as I had been taught to always pay off your credit cards monthly.

Over the years, I tried to create and stick to budgets. I read all sorts of financial books from technically how to create a budget to how to view your finances. It seemed to work for a month and then something unexpected popped up that needed to be covered and the little plastic card would come out. The biggest shock was buying my house and the drastic increase in expenditures it made on my budget. I was able to adjust my spending and try my best to stay within my earnings. Last summer, in one of my many online searches for information, I came across a product called Mvelopes. This product enables me to link all of my bank accounts together and create a budget of specific "envelopes." Transactions must be assigned to the specific envelope and the balances are adjusted appropriately. The financial pieces seemed to get a bit easier.

Then, last spring, I participated in a Dave Ramsey Financial Peace University class at my church. And I learned that a budget needs to be fluid and there needs to be room for fun! The sacrifices of getting out of debt are not sustainable without little rewards along the way. One of the challenges is that the class encourages the use of cash-only. However, I discovered that if I have cash, I spend it! It is not painful as the class promotes. I think it might be generational as I've talked with other friends in the same boat. I think that a $100 bill would be painful to spend - but most of my categories are less than that amount. So I use my debit card & keep my spending within the envelope balances using the Mvelopes program.

Today, I am actively working to change my financial situation. Selling unused items through ebay, craigslist and yard sales to generate cash to pay-off debt or fund expenses not in the budget. I have an opportunity for a part-time job in evening that will speed up the process. I'm also considering selling my house (2 year plan as I need to fix a few things first...) and returning to apartment living and reduced living expenses! I have also considered renting the basement bedroom once the basement bathroom has been repaired. I have so much hope for a brighter financial future that is debt free.

I’m blogging along with Mathnerd today (and several times this month). Check out what she’d be!