Friday, January 10, 2014

An Annual Cycle

We set our sights too high. Our goals unattainable. And in the end, we don't buckle down, sacrifice and WORK for it. Debt free. I true desire. I hear God calling me to be debt free, and yet I continue to use credit cards (transmission went out in the Suburband and the Blazer required it's own set of repairs totalling about $4000 in credit card debt). I fall prey to the needs of the world, to material things. This year, I will set a REALISTIC goal. I am giving myself 3 years to be debt free. I have a plan in place. There is a plan A and a plan B. I will work plan A UNTIL plan B comes to fruition.

Plan A. I will take 3 years to slowly change our lifestyle.

Step 1. Cutting first the fast food and impromptu meals out.

Step 2. Stop buying snacks, coffee and non - essentials from the gas station

Step 3. Budget enough to buy my staff 1 lunch OR breakfast each week.

Step 4. Cut the grocery bill by lessening the meat in all but 1 meal each week and using other healthy alternatives to keep our meal quality higher.

Step 5. Communicate more effectively with Todd about our finances, our needs and our budget.

Step 6. Stick to my budget
a. I have $1798 coming in from the girls last month with us. I want to use that money to pay off our Care Credit card before it starts building interest, pay off right now is $1200 leaving $598 which will pay $500 for a weekend get away from my husband and I (essential) and put $100 in savings.
b. I have used a tax return calculator to see that our return SHOULD be close to $7000 but I will figure on $6500 because of the fees for H-&-R Block to do our taxes. I will use $4300 of that $6500 to pay off the suburban leaving us with $2200. I will put $1000 in savings, we will purchase a new TV (ours is literally 11 years old) and with the remaining money will buy new clothes for Todd and I (we are both in careers now that require us to dress a certain way - him a teacher and I'm the director...time to grow up). What is left will be snow balled into the remaining 2 debts.
c. our $7000 of credit card debt. When Todd is off for the summer, our fuel bill will be cut nearly in half and our child care costs will be down by about $400/month. I am hoping to leave the fuel money for him to do summer activities with the kids, and that $400 can be snow balled onto the larger credit card. but with also paying off the suburban, that frees up $150 to try to snowball, however when the girls went home, we lost their check (over $1700 a month which was used mainly for their care but also for the rent of the house we're living in now so we're really losing money from the budget making it harder to snowball that money when we don't really have it to use).

Plan B. Everything about Plan A goes out the window depending on HOW plan B goes. Plan B comes into effect WHEN we sell the Wapak house. If we can sell the house for what it's worth, it will have enough left after we pay the mortgage and realtor fees to pay off the credit card debt and maybe start a down payment for our next home, however since we use VA home loans, we don't need a down payment so we may use that for Todd's new truck (he's got his eye on one already).

Either way, life is changing. Right now. Not after the checks start coming in. Right. Now. We will make coffee before church and take it in our go cups. This is not any ones fault but my own. Todd is on board but I am the problem. He has the self control I lack. He is cooperative and forgiving. This is on me and it changes today.