Debt 101: Where to start

So, let’s talk debt.  My biggest pet peeve next to poor manners is debt.  I abhor debt because it means I have managed to manage my money poorly and someone else is going to make a profit from my poor decision making skills.  So, how do I eliminate this debt, how do I manage to make this debt go away in the quickest and easiest (LOL, I cannot believe I used easy because this is anything but easy) way possible to get out of this little predinky dink?  My hubby and I have read all the books, or at least he has and then has verbally regurgitated it all back to me, and we understand the procedures that Mr. Ramsay, Mr. Kiyosaki and many others have told us over and over.  I am great at debt stacking and if you are unsure of this reference it simply means:

“By taking into account the interest rate and amount of debt, debt stacking identifies a way for you to pay off your debts. You begin by making consistent payments on all of your debts. The debt that debt stacking suggests that you pay off first is called your target account.
When you pay off the target account, you roll the amount you were paying toward your next target account. As each debt is paid off, you continue this process. Debt stacking allows you to make the same total monthly payment each month toward all of your debt and works best when you do not accrue any new debts.  You continue this process until you have paid off all of your debts. When you finish paying off your debts, you can apply the amount you were paying towards your debt toward creating wealth and financial independence! ( http://www.primerica.com/public/debt-stacking.html)”

   The key is to not accrue any new debt.  Easier said than done so, the mind-set must be there and each person must identify the numero uno reason why they are in debt.  For me, I am an impulse buyer.  If I want it I buy it but instant gratification is not the way to go.  Make your list of needs, not wants before grocery shopping.  Keep a list on the fridge and check your coupons regularly.  The little things will eat you alive and your financial pocket will hemorrhage from those numerous little buys so, #1, write down every penny you spend, and this is not just the big purchases, I mean every penny you spend.  This will make you aware of where your money goes.  On a monthly basis, write down all of your bills.  Divide the monthlys into reoccurring such as rent/mortgage, water, PG&E, etc. then the bills that you are tackling to pay off.  With this pay-off, write down the monthly payment and also the payoff amount.  I am a visual person so I need to see where my financial enemy is and the best strategy to eliminate it.  Two books I recommend reading are, Dave Ramsay's, The Total Money Makeover, and Jean Chatzky's,  The Ten Commandments of Financial Happiness.  And the last thing, be diligent about being on time with payments, even if it is just the minimum.  Late fees will make your bank account and pocket hemorrhage even more and this includes balancing your checkbook so you have no overdraft fees.  Check out your bank to see if they have classes on balancing if your unsure of how to do this.  Your bank can be a great resource.

   So, this is my journey, our journey, the hubby and I.  We are going to commit ourselves to becoming debt free and this is no small or easy task but one well worth the journey, well worth exploring the path because in the end, we will free up money for our future and in the end, we are rewarding ourselves with a trip paid in full with cash, no credit.

Lets talk debt and and where the relief comes in.

I have not blogged in awhile.  Maybe because my journey to find out why I eat to self soothe has been a long drawn out journey.  Sometimes the reason we do things goes much deeper.  This year has been not just a hill to climb but a mountain conquest.  I started a new job almost one year go.   I love my job, my career and I love the possibilities it brings to my life, the incredible possibilities that lye before me.  Now it is my job to lay the groundwork and to learn and teach as I go.  This year we moved into a new home after raising our family for 20 years in the last one.  Our new home brings new memories to fill it with and we feel stronger in this home.
This year brought great loss in my life.  Sitting here now and fully grasping what has been lost is very overwhelming; one of my best friends, Rosanne, who if it were not for her in my life I would never have been on the road I have been on for the last 13 years.  She was an amazing friend and I called her sister.  I loved her very much and I miss her every single day.  I see her daughters and I know she is forever here.
  Just this past April, We lost my father-in-law.  My memories of him are constantly around me.  I see him in my husband and I hear his voice with every joke told by my children.  I miss his hugs and the way he would laugh when he told a joke.  What we learn when we endure tragedy and heartache is up to us.  I know that when I feel the need to tell someone what they mean to me, I tell them.  I tell them because no matter what, people are important.  The ones we care about should be told of their importance in our lives and so I have taken up this philosophy.  Be mindful of your words and and your actions.  They can hurt like a sword.  Forgive every chance you get.  Forgiveness is not for the other person, it's for ourselves.  Negativity eats at the soul and makes a person very bitter.

  With all of this said, I will blog about something I know how to do; get out of debt.  I will share our road with each of you.  This journey is not for the weak at heart, but for the strong minded and strong hearted and each day I pray for the four of us to do what needs to be done.  No eating out, no extra clothes or impulse buys, and no more wasteful spending; time to plug up the holes where money tends to leak out.  Debt can cripple families, destroy couples and defeat the strongest of individuals, so, Chris and I are starting off with a pledge to one another and to our family that we are getting out of debt and we are including our children in this process because we want them to be aware of the debt pits and to not stumble INTO them.  We are starting with credit cards.   We will share how we talk to the credit card companies, how to deal with them, debt stacking, how to travel on a shoe string budget and best of all how it feels when that final payment is paid.

  I hope you join us this little adventure.   It will be a bumpy ride filled with a lot of emotion but in the end you will want to ask yourself, "why didn't I do this sooner?"

  Stay tuned....

Goals set, full speed ahead.

January is off with a bang.  School has started, moving into a new home after 17 years in this one, job is going great, life is looking amazing and I am not freaking out.  I turned 40 this past September and I need to show accomplishments from the last 40 years.  I do not fear my age, I fear my lack of accomplishment.
  I went to a funeral last month of a man who was an amazing part of this community.  Mr. Lollar accomplished so much in his life; people adored him, a wife that loved him, 2 children who loved and admired him, grandchildren who looked up to him and many people and colleagues who admired his life work.  He loved art, sailing, his church home and so much more.  I looked around the beautiful church we sat in and it was full with so many there to celebrate his life.  I felt fortunate to hear about this man and to learn about how he lived.  I truly felt a part of a great celebration of life and it made me stop and ponder what my mark will be on this earth when I am gone.   I did not have the distinct pleasure of meeting Mr. Lollar himself but I do know his daughter and I see the drive in her that must have been in him for so many years.  So, you may ask what this has to do with me?  Well, I want to leave my mark on this world as well.  I want to leave my children with a legacy to look up to, stories that make them laugh out loud when told, people who I have helped, worked with, inspired or taught and people who want to carry on the work I have started. 
  My goals this year sound simple but take a lot of sincere work and dedication on my part.  I want to become more fiscally responsible, I want to lose 10 lbs. a month for the next 12 mos., I want to work with my team to Raise 20% more than was raised last year with United Way, to become a Women's Leader by my 41st birthday, to build my own business, and to run the Tinkerbell 1/2 marathon next Jan. with my daughter and whoever else wants to travel on this journey with us.  I believe that if no one is laughing at these 1 year goals they are not big enough and I need to think bigger. 
  I heard a great line today that I loved and that was how the Japanese celebrate simplicity.  Aimee noticed that when she was in the beautiful country of Japan and I am reminded of that as I pack.  I want to make life easier and for me that is less "stuff" and having a life that is free of junk not needed.  Being able to keep my house clean and organized because I have less "stuff" will allow me to go to bed earlier and have the rest I need to exercise and be more active and alert.  So I put it out there, how will others make their lives easier so that it is possible to go after your dreams and achieve your goals?  How will you decide to lead your life today?  I know that through Christ all things are possible and I know that each of us controls, in a large part, the path we will travel by the choices we make, so with that said, I will learn all that I can about my awesome job to be the best I can be.  I will learn from the people who are there to teach me and I will follow til I can lead.  I will not gripe or complain about my choices and I will see failures as tools on how to succeed which means getting up and doing it again and again til I get it right.  I can't wait to meet new people and become better and better at what I want and I will give back of myself and of my resources to teach others to do the same.
                                              I AM the captain of my destiny.

New Years, the new Me!!

2012 is finally over, not that it was horrible, it was personally a gratifying year but with it also came so much loss.  My family has seen a year of great change and for a woman who hated change, I learned to embrace it rather quickly.  My husband found a job that has allowed him to grow professionally and allows him further growth if he so chooses.  He is a much happier more content man and our marriage and family flourishes because of it.  I started a journey last January that has brought several people into my life both professionally and personally and there has been a lot of fear for me to overcome and I am choosing this year to hit it head on.  I went back into the work place after 16 years to a career that is very gratifying and I can truly say that most days it does not feel like work.  I have met people, lost some wonderful friends that I miss terribly and will carry them in my heart til my last breath and I have bid adue to some friendships because they were toxic to me and my family.  I wrote on my facebook this morning the following:

   "I no longer resolute but rather set my new 1 year goals, realistic goals that is. Some are wildly optimistic and some are mildly simple but all in all, they are mine to achieve and fail at. 2013 brings change abundantly and leaves behind a year of loss. I am the keeper of my dreams and goals, my achievements and failures but the key is to own up to them and humbly acknowledge them. My family is prepared for new beginnings and the release of a long cherished dwelling, so, to this new year, my dear friends and family, I salute 2013 and say, "bring it on, we are ready for you!!"

  I see a bright future full of endless possibility and I know that the only person to stand in the way of success is ME!!  Each and every one of us holds within ourselves the ability to manifest great and wonderful things.  I have my Lord there to help and guide me and sometimes when I am scared out of my wits, I pray for guidance and for the ability to take that very first step of the ledge where a new road awaits but is yet unseen.  My family is leaving this dwelling that we have called home for 17 years and we are moving to a new home, a new location, a new way of life.  We should all strive to be healthier, live cleaner and shine every chance we get because tomorrow is truly a mystery.  

  This year I also choose to be more fiscally responsible and will not try to keep up with the Jones' because they are in more debt than I and that is not the life I want to live.  I want to be more of a role model to my grown son and teenage daughter.  I want them to see that failure is when you DO NOT get back up after falling down and success is standing firm when no one believes in your dreams but you. So, with that said, clean out your closets, throw out the trash, sweep away the cobwebs and push fear to the rear and bid adue to the old year and say hello to the new one.  I challenge you to succeed, I challenge each of you to believe you WILL succeed.