Saving Stargirl

I emailed No Credit Needed about changing my debt repayment chart to reflect a goal date of December 2007 (instead of my overly optimistic April deadline - though at that stage I was only thinking about the credit card debt, not my card AND loan), and the cheeky bugger has set me a challenge - to have it paid off by November instead. Oh well, I’ll definitely give it my best shot! This year is definitely going a lot better than I expected it would so far - thanks in part to having this blog and all the motivation of other personal finance bloggers around whom I read regularly. It’s amazing how much more inspired I feel to get everything paid off, and get back in control of my finances!

On an entirely separate note, I’ve been working on a new blog this week, for something different - Lace & Stars. Okay, so it seems like a complete 180* from this one, which is about SAVING money, and that one is about, well, fashion & homewares & other shopping related things. BUT, I am just APPRECIATING those items — I haven’t BROUGHT anything!! I actually make a lot of stuff like jewellery, stationery etc, and finding things I really like - in magazines, books, on the internet - is very inspiring. So my Lace & Stars blog is a place to keep all those inspiring pictures & websites together, but doesn’t mean I’m out spending loads of money. I promise!

Of course I’ll still be updating this blog, Lace & Stars is an entirely separate project.

I hope everyone’s had a good week! I can’t believe it’s February already, but I’m very proud of myself for all the money I paid off my credit card in January, but still had a life too - I saw some movies, went out for dinners, brought some books & magazines (which I love - they are my ultimate treat!) - but I didn’t go crazy. I budgeted for those occasions, and I mostly stuck to my budgets each week. I think I’m starting to get the hang of this thing!

Had a really busy weekend so I didn’t get a chance to update, but I’ve actually been pretty good, and my American Express card hasn’t been used in a week now! I was worried because I under budgeted myself for this week (between Paydays), and when I sent money to my American Express card from my pay, I didn’t leave enough for the rest of the week - and suddenly I had 2 dinner dates that I wasn’t expecting. But so far, so good, and the credit card is untouched. Hopefully I’ll have enough cash for my dinner date tonight so I won’t need to use the card either, and then tomorrow is Payday again.

It’s hard to find a balance between being ruthless with paying off my card, but also not leaving myself short before the end of the week so that I wind up using my card anyway. I try to plan ahead and budget for what I’ll need (things like petrol for the car, prescriptions, bills that are due), plus a little bit for going out, treating my boyfriend to a meal, or whatever else, and then send the rest to the card; but then when unexpected events crop up (like those 2 dinner dates with friends that were planned at the last minute), I find myself left short. I don’t go out a *lot* and I don’t spend up big when I do, but if I leave the money in my every day bank account, I’m tempted to spend it, which is why I always send money to my credit card on the day I get paid. The longer I leave the money in my bank account, the less I end up sending to the card, as “somehow” the money just filters away.

How do other people deal with being ruthless about paying back as much as they can on their debts, but still leaving some money for unexpected events?

I’m trying to be really aggressive about paying off my American Express card especially this year. I’ve had money owing on it for far too long now, and the interest I’ve had to pay in the last year has been far too much – there were times last year where I could have paid it off for good, but then I was tempted to go shopping (scrapbooking products especially were my big weakness last year, at least, before going overseas – I had the credit card down to about $600 before I went overseas!)… anyway, this year I’m determined to get it completely paid off. February was my original deadline, but this was before Christmas, and you know what the holiday season is like… but now ithe holidays are over, and there are no more excuses! So hopefully by Easter I’ll have it paid off… though come to think of it, I don’t actually know whether Easter is in March or April this year. But either way, that’s my deadline! I’m tired of owing money, and feeling like I don’t have anything to show for it (though the travel experiences I had are worth far more, but you know what I mean… right?) 

Anyway, so I’m trying to be really stern with myself this year, with how much I spend on things I don’t need, and putting any extra money I have on to paying off my credit card. This year hasn’t been off to such a great start financially; whilst being a temp means I get paid more per hour (also because I got a payrise this year! Hurrah!), it also means that when the office is closed or I have a sick day, I don’t get paid. So when the office I work at was closed between Christmas and New Years, it meant I didn’t get paid in the first week of January. Nor when I took a day off sick last week due to a headcold. Times like that, I really miss my old permanent job where I did have holiday and sick pay! 

But after that hurdle, I’m off to a fairly restrained start so far; I have a few bills & things that I need to pay, but was still able to pay off $150 on my credit card. Then today, someone transferred some money into my bank account that they owed me, and even though it was damn tempting to take the money and buy something fun (I’m craving for a new lipgloss as my favourite one has just about run out…), I put it towards my credit card debt instead :) Only small things, but I suppose I need to start developing better habits, and this is the way to start. Right?