Meet the new writers! Our next new writer is Nick. Nick is fascinated with the different ways money can be used as a tool for people to increase their wealth. He is also quite familiar with the concept of debt and is working diligently to get rid of his debt. You can read more about Nick in his bio [1]. Welcome Nick!
Back to the Daily Tasks of Saving and Spending
So, it’s finally over. You’ve completed your 1040 (or tax software or an account has, at least!), paid your tax, or requested your refund [2]. Now what? Well, I don’t know about you, but I for one have neglected a few things while I was working on my taxes. Those daily tasks that help keep me working on lowering my debt is one of them.
Forgotten Financial Tasks
In the past couple of months, I haven’t recorded a single transaction of my spending. Each evening, I would check my credit card online, and enter any new transactions into my money tracking software, and see how it affected my budget. Not lately! Instead, at the end of the month, I enter a large number and label it “Credit Card Charges” and pay it. I thought that would be fine.
Boy was I was wrong.
Now, I find that I am unable to pay the full balance of my “daily purchases” credit card. I have at least kept up with other, non-changing balances, but I am still greatly disturbed. (In my mind as well, but this is not the place for that discussion!)
This might not be the right path for all of you, but I like to record all transactions on my daily use credit card. At the end of the month, I can get reports on exactly how much of my, er, “our” money my wife has spent on unnecessary clothing. I, of course, only purchase essentials.
OK, that’s not entirely true, but whatever. This is my article, not hers! (Although, if that sounds familiar, see 5 Ways to Save Money When Your Spouse is a Spender [3].)
Getting Back on Track
So where to start? Well, first things first. As of today, I am recording my daily transactions again. I suggest for those of you who have been procrastinating on this to do the same. Join me in our battle against our debt! I challenge each of you to stick to your budget, keep track of your spending [4], and make sure the two jive. (I like the word “jive,” but I so rarely have the chance to use it.)
It will take time, but with all the great information available here at My Dollar Plan, I think we can all manage. I’d like to talk more about savings in the future, something we shouldn’t forget about, even during the times when our debt seems so overwhelming.
As far as the increased debt I’ve accumulated by not paying off the full balance of this card each month, I feel I have no choice but to cut some spending somewhere, and work at it until it’s manageable again. It’s certainly going to take some time, but the payoff is definitely worth it.
I’d certainly welcome any suggestions from you! If you have a similar problem, please feel free to ask me in the comments section; I’d love to help you out. Until next time, happy savings, lower that debt, and have fun doing it!