Debt Diet
Like most people that I know or know of, I am not the best when it comes to money. Time and time again, I have tried to save money and have some savings to fall back on if needed. I was succesful in that only once back in 2004. Well, I am about to hit 30 years old in 11 months and it's past time to get serious about my finances. There are certain things that I want to accomplish that just aren't gonna happen if I continue my spending and no-saving habits.
I'm not broke my any means. But I am living from paycheck to paycheck and that just won't do anymore. It's high time that I start saving some money. So the whole purpose of this debt diet is to cut back on luxuries so that I can put money in the bank and not have to touch it.
So I decided to enroll in my own debt diet. I first heard about a debt diet watching the one and only, Ms Oprah Winfrey. I was watching this show and heard about a woman who was able to save $13000 in one year by cutting out all unnecessary things from her budget. She didn't go to the movies, she didn't go out to eat, she didn't spend money on anything that wasn't a necessity. Now I don't think that I could sacrifice that much, but I realized that I do have to sacrifice from now on.
Granted, I do have bills that can't be avoided, such as housing, car, insurance, and other fixed bills. But I think that my eating out, driving all over the place, clubbing and drinking, and things of that nature may just need to be cut back. For instance, I went out on Sunday evening to Django and set a budget of $20. Normally I would just get $40 from the ATM and tell myself that I will only spend $20. But of course, I end up spending it all. This time, I only spent the $20 that I got. When I left the club, I felt as though I had just as good a time as if I spent $100. I have also found out that I feel just as good when I cook instead of going out to eat. Lessons have been learned.
So I have set April 15th to be the beginning of my debt diet. I am not gonna have to cut out little habits like picking up things that I really don't need. I am gonna have to cut out treating friends to dinner or a night on the town. I am gonna have to stop feeling like I have to have cash in my pocket. I am gonna have to stop buying lottery tickets. I am gonna have to decrease haircuts to every 10 days instead of every seven.
I'm gonna have to do a lot of sacrificing, but the biggest sacrifice is gonna be my time. I'm getting a part time job at a hotel. I talked with the Assistant General Manager of the hotel I was working at last week and he said that I could come work for part-time. I thought about being a subsitute teacher, but they only allow people to start at the beginning of the school year in August. But I am gonna apply to start then.
In addition I am due for a raise on my job. I will be talking with my boss tomorrow about this. I have been at this job for 1 year and am able to do 5 of the 6 projects that we have. There are people that have been there for 5 or 6 years and are still only doing one. I think that I deserve to be properly rewarded for my achievement.
So wish me luck as I embark on this debt diet. I don't have a lot of will power when it comes to money, so i'm gonna need all the luck I can get. And speaking of luck, I think that I may just buy one last lottery ticket.
I'm not broke my any means. But I am living from paycheck to paycheck and that just won't do anymore. It's high time that I start saving some money. So the whole purpose of this debt diet is to cut back on luxuries so that I can put money in the bank and not have to touch it.
So I decided to enroll in my own debt diet. I first heard about a debt diet watching the one and only, Ms Oprah Winfrey. I was watching this show and heard about a woman who was able to save $13000 in one year by cutting out all unnecessary things from her budget. She didn't go to the movies, she didn't go out to eat, she didn't spend money on anything that wasn't a necessity. Now I don't think that I could sacrifice that much, but I realized that I do have to sacrifice from now on.
Granted, I do have bills that can't be avoided, such as housing, car, insurance, and other fixed bills. But I think that my eating out, driving all over the place, clubbing and drinking, and things of that nature may just need to be cut back. For instance, I went out on Sunday evening to Django and set a budget of $20. Normally I would just get $40 from the ATM and tell myself that I will only spend $20. But of course, I end up spending it all. This time, I only spent the $20 that I got. When I left the club, I felt as though I had just as good a time as if I spent $100. I have also found out that I feel just as good when I cook instead of going out to eat. Lessons have been learned.
So I have set April 15th to be the beginning of my debt diet. I am not gonna have to cut out little habits like picking up things that I really don't need. I am gonna have to cut out treating friends to dinner or a night on the town. I am gonna have to stop feeling like I have to have cash in my pocket. I am gonna have to stop buying lottery tickets. I am gonna have to decrease haircuts to every 10 days instead of every seven.
I'm gonna have to do a lot of sacrificing, but the biggest sacrifice is gonna be my time. I'm getting a part time job at a hotel. I talked with the Assistant General Manager of the hotel I was working at last week and he said that I could come work for part-time. I thought about being a subsitute teacher, but they only allow people to start at the beginning of the school year in August. But I am gonna apply to start then.
In addition I am due for a raise on my job. I will be talking with my boss tomorrow about this. I have been at this job for 1 year and am able to do 5 of the 6 projects that we have. There are people that have been there for 5 or 6 years and are still only doing one. I think that I deserve to be properly rewarded for my achievement.
So wish me luck as I embark on this debt diet. I don't have a lot of will power when it comes to money, so i'm gonna need all the luck I can get. And speaking of luck, I think that I may just buy one last lottery ticket.
Labels: Finance
posted by That Dude Right There at
4/09/2007 07:36:00 PM
8 Comments:
Bon chance!
Good luck. I know I could use a debt diet myself.
Congrats! Although you should have started by keeping your old car. I'm sure the cost of reapir would be thousands less than buying a new car. Just be serious about being serious!
It sounds good man. Ive actually been thinking along the same lines. I just got a new ride a year ago this month and im gonna see if i can have it paid off in one more year. We'll see how well i do with that. I think its good to know that you lack financial dedication and ur taking the steps to change that. Best of Luck, you can do it!
Ask yourself this question:
Would I rather diet the money I earn now that I am not happy with? Or, would I rather concentrate focus on increasing my earning power for more money to cover all my debts, needs and wants?
I suggest all young people to focus more on earning power rather than debt management.
I need to do the same. I definitely have a problem spending money, and its the same as you. Going out, treating friends, GAS alone is ridiculous. Its funny, cuz I'm not a shopper by any means. But yeah, I need to go on a debt diet too. That, or, just increase my savings per paycheck, and actually leave it in savings. *sigh*
Good luck!
you should think about opening a high yield online savings account. i have an account with hsbc that links to my current checking account. its easy
visit:
http://www.hsbcdirect.com/1/2/1/offer?code=husa
and like pono said, have a regular amount deducted from your checking account each month. 10% of your check is recommended. however, see how much you can comfortably contribute.
let me know how that goes...
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