Comments for A Financial Journey

Comment on Cash budgeting with a simple cash budget by Kate

Kate — Sun, 07 Mar 2010 22:10:04 +0000

Commenting on my own post here, but it’s now over a year later and I still find this to be the most effective and simple budget I’ve ever created. I find it so much easier to work with cash. It’s amazing how difficult it becomes to create and maintain a working budget when you have too many “accounts” and split your expenses between them. Too many details actually makes it so much harder to budget effectively.

Comment on Feelings are dangerous decision makers by Kate

Kate — Thu, 18 Jun 2009 00:53:43 +0000

It’s funny how being honest has liberated me from my worries of debt. Talking about this stuff has made it so much easier to stick to a plan and also to just realize that we all make financial mistakes sometimes but that most of the time we can recover if we put a little effort into it.

I’m so glad to hear that my own story is motivating someone else! That means a lot to me.

Comment on Feelings are dangerous decision makers by Joyce

Joyce — Thu, 18 Jun 2009 00:44:09 +0000

I just found your blog this week and it is exactly what I have been looking for. I have been so depressed about my own situation, which is very similar to yours. Thank you for your honesty. It has motivated me.

Comment on Are rewards for successfully paying down debt a good idea? by Kate

Kate — Tue, 16 Jun 2009 02:21:37 +0000

@Rachel I do treat myself when I’m losing weight because I know it’s the only way to keep things real for me, but I’m careful to keep it in line with my ultimate goal. Now that I’m working on paying off all my debt, I’m trying to go at it the same way with money. But like food, sometimes it’s hard to know when it’s okay to ease up and when it’s not. Nobody likes to plateau for long. It’s easy to lose your motivation to reach your goals when you stop making significant forward progress. I don’t want that to happen to me.

Comment on Are rewards for successfully paying down debt a good idea? by Kate

Kate — Tue, 16 Jun 2009 02:18:21 +0000

@The Yellow Piggy Bank I have definitely found that the longer I force myself to stay strict without any breaks, the more likely it is I’ll splurge and overspend. So far, that hasn’t happened lately, but the purchase of the camera and other use of a little extra money this month is my plan to forestall any budget-busting splurges!

Comment on Are rewards for successfully paying down debt a good idea? by The Yellow Piggy Bank

The Yellow Piggy Bank — Tue, 16 Jun 2009 00:39:05 +0000

I reward myself for staying being dedicated to paying of my debt as soon as possilbe. Like you I struggle with when is it okay to not give every penny to my debt.

If there is something that I need or want and I don’t want to miss the opportunity I will put it in the upcoming budget. From time to time I start to reward myself alot and my progress slows, but I just get back on the wagon and refocus.

It is hard not to become comfortable spending the money that goes towards debt.

Comment on Are rewards for successfully paying down debt a good idea? by Rachel

Rachel — Thu, 11 Jun 2009 02:22:07 +0000

I am totally the same way about feeling the need to reward myself. So many people have related getting out of debt to losing weight, and just like when you are trying to lose weight, you need to give yourself a treat every now and then, I think the same goes with your debt. If I deprive myself of all luxuries or drastically alter my lifestyle to get out of debt, it won’t happen because I will just get disillusioned and go back to my old habits.

Comment on Tough choices: Pay down debt or save for emergencies? by Kate

Kate — Thu, 04 Jun 2009 13:35:13 +0000

We all have to do what works for us and keeps us motivated. By the way, I used your link to get me some free chocolate last Friday. :)

There might come a time when I decide it’s smarter to have that $1000 saved for emergencies, but for now, my savings for irregular expenses is working for me when I need quick cash, and I’m able to repay myself. Once I started budgeting for those irregular expenses, it’s amazing how many fewer emergencies I’ve had to deal with.

Also, I was very surprised by how much money I actually needed on hand to cover these quarterly and annual expenses. It was a shocker, for sure, but it’s amazing how much less stress one has to deal with when you know you’ll have your car insurance funds ready when your 6 month payment comes along.

Comment on Tough choices: Pay down debt or save for emergencies? by The Yellow Piggy Bank

The Yellow Piggy Bank — Thu, 04 Jun 2009 05:09:10 +0000

I had to make the same decision. In July 2007 i was introduced to Dave Ramsey. At this time I hadn’t come up with a very solid financial plan, so I decided that I would apply the principles he teaches for one year to see how it would work out. So I have had a $1000 emergency fund for 2 years and I have paid about $45K towards debt (including interest). It has worked so far, so I am staying the course.

Comment on A debt snowball for the winter months by Kate

Kate — Sun, 17 May 2009 14:14:10 +0000

The thing I've always thought was smart about the Dave Ramsey plan is that it allows you to build up lots of momentum. By the time you get to the larger debts, you've already built up a big snowball of money to throw at them and you get to see progress much more quickly than you would otherwise, keeping your motivation and determination high. (Dave Ramsey's plan is in his book The Total Money Makeover: A Proven Plan for Financial Fitness and others he's written. He also has some free resources on his website.