It has nearly taken us our whole lives to figure out that debt is dumb. Tired of feeling like we are on the verge of drowning, we finally start taking the steps to become debt free.
On April 29 we learned that James was going to start working for a new company and he would be starting on the 16th of May. A new job, this is what we had hoped for, wished for, and prayed for. Over the last year we had our fingers crossed for a better job for James, a job that would allow us to have more income and for the hubs to be home every night. Last year he had several prospective jobs, but nothing was a right fit, and now, GLORY, GLORY our dreams are becoming realities!! With that being said we knew his last paychecks and his first new paychecks were going to throw our budget off a bit, off in a good way though. We are able to get current with our bills for the month of May, thanks to basically having two extra paychecks. I am a little sad that we couldn’t put the extra income in savings for our emergency fund, but we are taking baby steps, and before we can save money we need to get current with our creditors and our regular monthly bills.
Despite starting the month off deep in the hole, roughly $700 in the red we were able to pay our bills, get back in the black, and pay off $751 in debt! I would say that the month of May was a good first solid month of working on our budget. We made it through our first month of NOT putting anything on a credit card, that alone feels like it needs to be celebrated, I would like a margarita in honor of the occasion, but I wont because I am pregnant and one day when I am debt free I will drink all the margaritas… maybe on a beach vacation, paid in cash! So, here I am drinking my ice water and day-dreaming, cheers to being debt free!
During the month of May we did do a bit of Adulting with our baby steps. We rolled over my old 401K into an IRA, and shopped for cheaper car and homeowners insurance, if that isn’t adulting I don’t know what is!? We also completed one of our first steps to financial freedom, which is a small list of tasks to take care of before you get serious and down to business with your money.
This month we:
- Committed to NEVER borrow EVER for ANYTHING – We will not dig ourselves and our children into a bigger financial mess, we want to be free!
- My husband and I talked about our finances and got onto the same page – I do not know why it has taken us so long to get onto the same page with our money, maybe denial?
- We created a written budget, and plan on maintaining it – My husband and I are a team, and we now sit down together monthly to budget and pay our bills
- We have temporarily stopped all retirement contributions – We will start contributing as soon as we are on baby step number 4
- We got current on the basics, food, utilities, shelter, and transportation – We have always been current with the basics, although sometimes we don’t seem to have enough food.
- Got rid of “toys” – We don’t have any toys that are costing us a monthly fee, however we still do have a few items we could sell to put a few dollars into our emergency fund.
- Cut our lifestyle – We haven’t had a lifestyle in years, we don’t eat out, or even go to see a new movie in the theater.
- Got current with ALL of our bills. – This was hard we were behind a payment and over the limit to boot.
We completed 8 simple tasks this month, and now we are officially on baby step number one: Save $1000.00 for our emergency fund. As of now we haven’t set a goal of when to have our $1000, but I am hoping it is with in the next three months. I am incredibly proud of ourselves this month, we survived the month of May without putting anything on a credit card!