One year Blog-a-versary

My first post on this blog was exactly one year ago. I am so glad that I started this blog to stay motivated in reducing debt. It really helps! One year ago, I was $6975 in debt, now I owe $1970. Over $5000 paid. Yay!

This has been a year of big changes for me--selling the family home, buying a new smaller house, DD and DSIL moving in while building. These are all good things. I like having a little chronicle of the year on my blog.

The coming year will be exciting as well. I should become debt-free (except mortgage)!!! DS is beginning his senior year in high school and DD 21 is in her senior year of college. Lots of life to enjoy now while staying financially responsible.

Thank you for joining me on my journey. I have learned so much from your comments and blogs. Let's start Year 2!
What about you? What exciting changes are on your horizon?

Two Years ago

In late June, 2007, I read Dave Ramsey's Total Money Makeover. Before reading this book, I really thought that I was in pretty good shape financially because I was able to make my monthly payments. I had 2 zero interest credit cards that I had used for big purchases, one CC with a $1000 balance that I was unsuccessfully trying to pay down, and one card that I paid in full each month. I also had a $3000 car loan.


What I didn't realize was that I was getting farther and farther in debt each month. I was spending more than I brought in. I was pretty upset and ashamed that I hadn't seen what was happening.When I calmed down, I started on Dave's Babysteps. For the first few months, I got even further in debt because I wasn't used to living on that month's income.

My journey has been pretty long, but I can see light at the end. I think that in 4 months, I will be finished with Babystep 2. Lessons I'm learning along the way--tracking my spending is important for me because I tend to be unrealistic in my estimates, saving for unexpected expenses and irregular expenses decreases stress, and accountability really helps me stay on track.

I am enjoying this journey and I have made progress in reducing my debt. Hmm...maybe the journey is more important than the final outcome. Interesting....

Debt Reduction Progress

As I try to work out my goals for 2009, I want to evaluate my financial success and failures for 2008.

At the beginning of 2008, I had $11,700 of non-mortgage debt, and a $162,000 mortgage. During this year, I have paid $5500 to debt, sold my house and purchased a smaller one. My current status is:

Credit card debt:
Dec. 2008 $6200

Emergency fund:
Dec. 2008 $850

Mortgage:
Dec. 2008 $117, 000 (I need to look up the exact figure)


I am pleased with my progress in 2008. I have not been "gazelle" intense in paying off debt because another of my goals is to enjoy life now with my children and friends. Some of my splurges were: buying a share of a 20-year old boat, going to Ocean City with friends from college, going to Charlotte for a cross-country race.


I want to continue to be able to have dinner out with friends and to perhaps plan a trip to NYC in the summer to visit DD2. I want to budget for these important expenses as I plan for 2009. Realistic planning is a challenge for me. I think I need more accountability in my budget. I really want to find a system that works for me.

Launch!

Change has always been difficult for me. I have had several major changes in my life over the past few years and have decided to become more proactive in managing those changes. This blog is a baby step in that endeavor.

My goal in writing this blog is to track my journey out of debt, while learning more about personal finance and investing along the way. Milestones in my debt-free journey so far:

• June 2007 - read Total Money Makeover


• July 2007 - made a budget and started trying to live within my income (instead of using credit cards for food and gas)


• August 2007 - debt $13,770. (Not counting mortgage)


• Sept.-Dec. 2007- began paying down debt


• Jan. 2008 - discovered the world of personal finance blogs


• Feb. - August 2008 - continue paying debt

Reading personal finance blogs has encouraged me greatly over the past eight months. (Thank you, PF bloggers : )) I'm hoping that by writing about my successes and failures, I will get a new shot of energy to keep me on track.

Thanks for walking with me!

ReadytoChange