Saying Goodbye to Visa.

One of my goals for 2011 is to pay off some debt. I read a book by Dave Ramsey last fall and it inspired me!

I've never known much about finances. I know this is naive, but I always thought I would worry about that when I was older/married. I have had a job since I was about 15. I worked multiple jobs through college and have always paid for things on my own. But I was extremely uneducated as far as credit cards, interest rates & savings go. This book really opened up my eyes! I would encourage you to read it if you have not. It put things in very simple, clear words and motivated me to want to do better! I want to be as responsible as I can with what God has given me. I don't want to put my life on hold.

So, I began planning to be debt free. I had:

{two credit cards}

{my truck payment}

{and the dreaded student loans}

I started using the "debt snowball" worksheet available in the book, which basically says to pay minimum payments on everything but your smallest debt, and throw money towards that debt until you pay it off. You then roll that money into the next smallest debt, etc...I guess this is why they call it snowball. I don't have very much extra money but since the fall I have been putting every bit of extra cash towards the smallest credit card. Electricity is down by $40? $40 to the credit card. I babysit for an extra $20? $20 to the credit card. I downloaded the PAID debt free app to my ipad to keep me on track.

I also printed and filled out a tracking sheet that I posted on my fridge so I can see it every day, and subscribed to his podcast.

Last Friday I PAID OFF MY FIRST CREDIT CARD! I am so excited. I can hardly stand it. I feel really proud of myself, and very much in control. Instead of wondering where my money is going every month I am telling it where to go. Even though this year has been restrictive financially, I know I will feel so much freedom when that debt is gone! I plan on having my other card paid off by December and my truck paid off by April next year. I am just saving as much as I can and throwing every bit of money towards those things.

I need to stop waiting to do things because I’m young or single. I keep thinking after I get married I will save for retirement or a house and that is a silly way to live. I want to pay off these debts and start saving so I can buy my next vehicle in cash, put a down payment on a house, or travel for Pete’s sake! The interest I end up paying is pretty ridiculous when I stop and look at it. I want to be a good steward, and I hope I’m well on my way. There are so many people in America who just live completely in debt and think it is normal. I don’t want to be one of those people. I don’t want to pay extra money to interest just because I’m impatient. I’m determined to save up and buy things with cash from now on.

I’m really hard on myself for the most part. I have high standards and it’s easy for me to think I’m not doing things well. But I’m proud of myself today! I am ready to attack that next card. Debt free here I come!