Monday, July 9, 2012

No Spend July - The Quest to Pay Off My Debt


Again, it seems like forever since I have posted anything on here. However, I have made it my mission this month to FINALLY pay off my CC and other debts. It's on my 30 Under 30 list, so why not do it now?!

Backstory on why this is a big deal for me and the reason most of you will roll your eyes and call me crazy...

I don't have student loans, I don't have car payments, and I don't have a mortgage to pay. So where does my money go?! 

It goes to the places you'd think a single girl living in the city would put it- clothes, hair and beauty products, getting your hair did, restaurants and happy hours, books you intend to read someday, DVD's, the things you need and don't need for your apartment, and all of the other shit you decide to "Treat Yo' Self" with...



And there are the regular bills- plus cell phone, internet, gym, food, and Netflix. If you're lucky you can throw in some trips and vacations.

I can afford to treat myself to a few things here and there and I can afford my lifestyle (remember how I said I have no real bills?!). So, why the the plan?

For about the past year I've been stuck in the awful cycle of never carrying cash and using my card to pay for things, but at the same time getting used to the nice chunk of change growing in my bank account. I'm really good at paying my bills, and even paying off the one store card I have but my CC is stuck in a nice $400 - $1200 limbo. 

I used to be very good about paying it off, but I headed into the adult world and had to start making some adult decisions/purchases without having the adult job yet. (No one told me how expensive regular healthcare was even with insurance!) I can't blame anyone but myself and it's time to turn this all around.

I decided to declare this month "No Spend July" because I want two kill two birds with one stone- pay off my CC and not freak out about losing the money I enjoy having in the bank. Also, I will be heading to Taiwan again this Fall for my brother's wedding and moving in with my boyfriend in September and will probably need to contribute to the many things that "we" will be purchasing for the house.

Here are the rules thus far for "No Spend July":

  1. No new clothes/shoes/jewelry/etc.
  2. No new make-up/lotions/soaps/hair products/etc.
  3. No online shopping - I'm looking at you Amazon!!!
  4. No Groupons/CrowdCuts/LivingSocials/etc.
  5. No unnecessary grocery trips- Plan ahead and eat the food you have!!
  6. No home goods- I'm moving, but this stuff can wait
  7. Only 1 lunch and 1 dinner can be eaten out per week
  8. Only 1-3 drinks may be purchased at HH's (I tend to stay long)
  9. No fancy coffee drinks- I work in the skyway, the coffee shops are a nice break
  • The ONLY exceptions are things that I actually need- ie, run out of face wash, running shoes fail on me, all of my undies disappear, gas
  • Signing up for races is also an exception- if it keeps me working out, it's worth it!!!

I already paid a good chunk on my CC and the plan is to use my next two paychecks to finish it off- there will need to be a rent check taken out of the next one. Without revealing too much, I'm already well under the $1,000 mark and I could just pay it off right now. However, I am trying to budget and save and part of that is putting myself on notice and planning ahead. (Who knows, I could just buck up and decide to get it over with.)

I started my day by paying my $3.60 over due book fees (You're welcome, Hennepin County Library!), so I think I'm on the right track. I'm also 9 days in to July and I've stood my ground, maybe I could carry this over to August and sort of re-set myself, because once the money starts flowing it's hard to stop it.

I've already got a few plans, other than packing and moving, to keep myself distracted. :)