Did You Forget About Paying Off Your Debt During Tax Season?
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. 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. 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.)
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, 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!
hi nick, i have some good advice for you. get rid of all your credit cards and get one check card. when you use it it takes money immediatley out of your checking account. that way you cant spend anything that you dont have in your checking account. and as far as record keeping goes, you dont have to anymore, all you have to do is look at your checking account every once in a while. it will tell you the balance!
Thanks for the advice, Kevin! My wife is currently doing just that. We have a joint account, but also our own personal accounts. I have a credit card with (what I think) has a good rewards program, so I continue to use that, and pay it back from my personal account as I make purchases. Everyone has different strategies, you have to use what’s best for you. Your debit card solution is a great one for a lot of people. Thanks again!
It is simple math. You need to get a second job – maybe write some more articles – or ask for a raise. I got out from underneath 40K in debt and have stayed debt free for 3 years now. You can do it but there is no magic bullet. Spend less, earn more
Math, psychology and practicality are very different things. Yes, I could do all of those things you suggest. The math does work out. But by getting another job, I spend less time with my family and my hobbies. I’m writing all the articles I’m allowed. The state government I work for hasn’t given raises since the economy went to heck. The situation is different for everybody. I know I can get back on track, and in time, this debt will be gone.
I would like to say though that those are all great ideas for readers to take a look at. You’re right, there is no magic bullet; you have to find the combination of tactics that work best for you.