Hello,
This is post one at the end of week one, and so far so good.
Here's the background, I've know for several months now that I am relatively severely in debt for a single woman with a good income. The problem is of course is spending more than I should with little regard for if I need the items I am purchasing. In fact, sometimes there would be little regard for whether or not I could actually afford what I was purchasing. This all amounts to a large amount of credit card debt. Naturally I'm blaming it on everything but what is really the cause, I'm siting, the recent purchase of a house, the trip to Hawaii, the "need" for a new computer....none of these are the cause of the problem, they are all symptoms. I buy things I want, when I want them. I've finally reached the point where I know I need to stop this "habit" otherwise I will find myself in a hole so big I cannot get myself out.
I have had Gail Vaz-Oxlade's book, "Debt Free Forever" for quite sometime and I enjoy watching her on Till Debt do Us Part. So with the greatest of intentions, I've followed her instructions. I've figured out where I stand, I've set a budget, and I've determined how much I need to pay to get all of my debt paid off in 3 years. Now all that's left is to put it into practice. So far, I'm adapting. I've moved to a cash budget for about 90% of my variable expenses, food etc. Some of the expenses such as my prescriptions and massage appointments I'm paying debit for, but as they are consistent each month and necessary for my health and wellbeing, I'm not so worried about them. The other expenses, such as food, clothing and gifts, entertainment, and transportation, I've set a specific budget for them and will attempt to follow it for three months and then see where I can make cuts, as of today (day 2 in week 2) I am able to spend far less for groceries than I expected, however clothing and gifts seem to be higher. Since it's a month before Christmas, I'm sure my typical clothing and gifts budget will not have to be nearly that high.
My current goal is to follow the current budget until February 25th, 2012 and then reexamine it to see where I'm spending more than I expect and where I'm spending less than I expect. I imagine there will be areas I'm way off on my calculations, but I am prepared for any eventuality.
A Chronic Overspender in Alberta
