I am quite the thrifty, frugal, and saving-obsessed girl, but I always need to remind myself that I need to have fun and enjoy myself sometimes too. Okay so usually it is my fiancé, Scott, that tells me this, but I agree regardless of where it comes from. The funny thing about Scott and I is that we are on opposite ends of the spectrum when it comes to money; I'm the saver, and he is the spender...luckily we balance each other out quite nicely. When he is being a complete spendosaurus or I'm being a tighter than tightwad, we know how to ease the other person back into reality. I really like this about us. As much as I would love if he found it fun to see how much money he could save each month, like me, I am happier that he reminds me to live and do and, yes, occasionally buy. Honestly, what do I work my butt off so much for if I can't enjoy myself once in a while?!
Now this brings me to something so exciting....and a little sickening (but I'm trying to forget that part). I just got a brand new, totally gorgeous, totally unlike me.....COACH BAG! I know I know, but let me explain...So, I have been dying to get a purse that is of really good quality (unlike the usual junk I buy that looks terrible or falls apart in a month). I have been saying I would splurge for years, but every time that I attempt to buy one, I chicken out and decide to save the money instead. So, my mom (another Scott in my life) said she would help me get a bag this year for my birthday. I got excited and shopped around and found it. I am by no means a fancy or showy person, but when I went into Coach just for a laugh, I saw it. This bag was amazing: awesome color, great style, perfect size...After a few months of hemming and hawing (yes it took me months) I finally broke down and bought the beautiful thing (again, with mommy's help - just know that I would not have it if she didn't pay for well more than half!). Of course once I ordered it, I immediately felt ill and wanted to return it. I usually do this and take all purchases back...try to trick the system...sick I know. Anyway, Scott convinced me to wait. When it finally came yesterday, I knew that i couldn't be away from her. So, I still feel a little sick over it, but I NEVER splurge, and this splurge will last forever! As Scott says, "You get what you pay for!". Yay for me.
The moral of the story is that I need to save, save, save, but I can't forget to live, live, live too.
Thursday, February 3, 2011
Wednesday, February 2, 2011
The never-ending story...
One thing that is a little frustrating when you are trying to pay off debt is the other stuff that always pops up and how everything happens at the same time - no moderation. Some upcoming, all-at-the-same-time events in my life are: I am in my best friend's wedding, I am saving for my own wedding (thankfully my parents are helping, but I want "just in case" money) and honeymoon, a big birthday is coming up for my fiancé (although he wants nothing special, that means nothing to me) and a house has been discussed. That is a lot to conquer when I am trying to pay off mountains of money! Anyway, I know this is life, but I just needed to vent!
Paying off debt - What to pay first?
So, when it comes to debt, you have to prioritize. If you have multiple loans, you must pay off the loan with the smallest balance first regardless of the interest rate. For example, if you have a car loan of $15,000 with an interest rate of 2% and a credit card debt of $30,000 with a 5% interest rate, it seems logical to pay off the credit card first. I mean you are paying more in interest so get that guy out of the way right? Wrong! What you should do is put all of your effort into paying off the car loan first because it is more in reach. Once you pay that off, put all of the money that you were paying toward the car toward paying off the credit card. You will soon see this debt disappear too.
I have two student loans; one big and one small. The larger of the two has a larger interest rate. I have focussed all of my time on the smaller loan though, and I can finally see the end! I am proud to say that in the next year or less, I will have that baby paid off!! Now that is big news. My goal though, get it done sooner. That may be hard though since my best friend is getting married this year and I'm saving for my own wedding, but I'm going to give it a whirl. Watch out big loan, I'm coming for you next! Woohoo!
I have two student loans; one big and one small. The larger of the two has a larger interest rate. I have focussed all of my time on the smaller loan though, and I can finally see the end! I am proud to say that in the next year or less, I will have that baby paid off!! Now that is big news. My goal though, get it done sooner. That may be hard though since my best friend is getting married this year and I'm saving for my own wedding, but I'm going to give it a whirl. Watch out big loan, I'm coming for you next! Woohoo!
Student Debt 101 - Knowledge is Power
I just have to put my two cents in about something. Because my whole blog is inspired by my student loan debt, I need to give all parents some advice. Although I am not a parent yet, I have some wisdom to share. When I was in high school and choosing a college to attend, my parents (great people by the way) told me that I could go anywhere that I wanted to go. Being the conscientious student that I was, I got great grades by working very hard. So, when college time came, I was so excited to do just that, go wherever I wanted to go(which was an out of state school). What I didn't understand (and this may sound stupid) is the impact that the tuition would have on me. I was so concerned with just going to college that the cost meant nothing. I really think that students should be specifically told how much money they will owe, what that means per month, and what many professions make per month. They need to see how big of a chunk o change it is to pay for schooling. I know not all students pay for school due to scholarships or help from family, but for those who do, this is really important. I was no dumby, I was just an average kid who thought about kid stuff...that didn't include how I'd pay for college. Now, paying for student loan debt is a large part of my life that I could have avoided by knowing the facts and going to a state school. I can't sit and regret because I can't change it, so I have devoted a lot of time to dealing with it the best that I can and being happy in the process :). What do you think?
Be a debt know-it-all
Let's be honest, debt stinks regardless of the type (loans, bills, credit card, etc.). Luckily, there are ways to remove this odor from your life. Because everyone's circumstances are different, this could take months, years, or maybe decades, but it is possible. My debt will not be paid off for several years, but I have a goal to pay it off much faster than the term of my loan. I always laugh when I read those articles about someone who paid off their $100,000 debt in two years or something crazy like that. I have to remind myself sometimes that everyone's situation is different; we all have different debt amounts, salaries, time, etc. I think it is just important to focus on my own situation, and what I can do to beat this thing. To get started, there are a few things that one must know/do regarding his/her financial situation:
Know-it-all list
1. Know what you owe, and who you owe it to
This seems easy enough,but many people have no clue what they actually owe. Get out the paperwork, look at your account online, or make a phone call or two to find out. How much are you in the hole exactly? How much interest are you paying? What is the term of your loan (how long you'll you be paying it for? Note that not every debt has a term.)? Who do you owe it to? These things are important to know for setting goals. When I finally realized how much I actually owed and how much I was paying in interest, I felt sick and wanted to cry (okay a few tears may actually have fallen), BUT I became so determined!
2. Know how much money is coming in and going out
You need to know how much you make and spend. Jot it all down. I started with just pen and paper and moved to an Excel spreadsheet, but there are many useful tools online to help you do this too. Get out your pay checks, bills, etc. and keep track of where that precious money is going. What are you left with at the end of the month after all is said and done? Don't forget to include small purchases like your daily cup o joe. This stuff adds up too. You may be surprised at what you find. When I did this, I felt comforted. This wasn't because I discovered that I was actually loaded (quite the opposite actually), but because I had a better handle on my life. I became more in control...a good place to be!
3. Know that you can beat your debt
As big and cumbersome as your loan may be, know that you can defeat it. Again, it may take a long time, but you will do it. Look that debt in the eyes and kiss it goodbye. You need to be strong and determined to do this so get ready for the fight.
4. Know your plan
Make a plan to be debt- free. If the term of your loan is 20 years, maybe you want to do it in 15. If you owe $10,000 in credit card bills, plan to pay it off in 5 years. These are only examples of course, but the fact of the matter is that you need to visualize an end to this thing and know how you will get there. Just imagine how nice life will be without that huge monkey on your back. Think of all that you could do with that extra money! Vacations? New car? Savings? It's nice to think about huh?!
5. Know how you will get er done
What will you do to achieve your goal? You need to be willing to sacrifice time and stuff so prepare yourself! Something important is that you find ways that work for you! Things that I do may not work for you. Find things that you can do consistently because if you hate the things that you do, you won't continue doing them. Sometimes this requires a little trial an error. Nothing wrong with that. For example, I can not stop going out to dinner forever, but I am able to cut back to only once or twice a month. That works for me! Debt is torture enough, you don't need more torture in your life! Stay tuned for a lot of tips to choose from!
6. Let your partner know your situation and goals
It is really important that your partner (if you have one) knows the situation that you are in. He/she should be aware of the debt that you have and your goals to eliminate it. You want to make sure that you have support and that your plan to get rid of that stinky debt works for the both of you. My fiancé knew about my debt way before we were engaged, and although it is not thrilling to him, he stands by me and my efforts to get rid of it...love him for that!
Okay, know-it-all, go get 'em!
Know-it-all list
1. Know what you owe, and who you owe it to
This seems easy enough,but many people have no clue what they actually owe. Get out the paperwork, look at your account online, or make a phone call or two to find out. How much are you in the hole exactly? How much interest are you paying? What is the term of your loan (how long you'll you be paying it for? Note that not every debt has a term.)? Who do you owe it to? These things are important to know for setting goals. When I finally realized how much I actually owed and how much I was paying in interest, I felt sick and wanted to cry (okay a few tears may actually have fallen), BUT I became so determined!
2. Know how much money is coming in and going out
You need to know how much you make and spend. Jot it all down. I started with just pen and paper and moved to an Excel spreadsheet, but there are many useful tools online to help you do this too. Get out your pay checks, bills, etc. and keep track of where that precious money is going. What are you left with at the end of the month after all is said and done? Don't forget to include small purchases like your daily cup o joe. This stuff adds up too. You may be surprised at what you find. When I did this, I felt comforted. This wasn't because I discovered that I was actually loaded (quite the opposite actually), but because I had a better handle on my life. I became more in control...a good place to be!
3. Know that you can beat your debt
As big and cumbersome as your loan may be, know that you can defeat it. Again, it may take a long time, but you will do it. Look that debt in the eyes and kiss it goodbye. You need to be strong and determined to do this so get ready for the fight.
4. Know your plan
Make a plan to be debt- free. If the term of your loan is 20 years, maybe you want to do it in 15. If you owe $10,000 in credit card bills, plan to pay it off in 5 years. These are only examples of course, but the fact of the matter is that you need to visualize an end to this thing and know how you will get there. Just imagine how nice life will be without that huge monkey on your back. Think of all that you could do with that extra money! Vacations? New car? Savings? It's nice to think about huh?!
5. Know how you will get er done
What will you do to achieve your goal? You need to be willing to sacrifice time and stuff so prepare yourself! Something important is that you find ways that work for you! Things that I do may not work for you. Find things that you can do consistently because if you hate the things that you do, you won't continue doing them. Sometimes this requires a little trial an error. Nothing wrong with that. For example, I can not stop going out to dinner forever, but I am able to cut back to only once or twice a month. That works for me! Debt is torture enough, you don't need more torture in your life! Stay tuned for a lot of tips to choose from!
6. Let your partner know your situation and goals
It is really important that your partner (if you have one) knows the situation that you are in. He/she should be aware of the debt that you have and your goals to eliminate it. You want to make sure that you have support and that your plan to get rid of that stinky debt works for the both of you. My fiancé knew about my debt way before we were engaged, and although it is not thrilling to him, he stands by me and my efforts to get rid of it...love him for that!
Okay, know-it-all, go get 'em!
Behind "Just a little something..."
Hi. I'm Shannon, I'm 28, and I really enjoy the simple things in life. In the last few years, I have enjoyed trying to simplify more and more. I notice that living this way reduces stress, saves money, and above all makes me happy. Here, I will be sharing all the little ways that I try to live simply. I hope that I can inspire you to simplify too!
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