Last year was quite a roller coaster for my finances. I moved into a brand newly built house after waiting over a year to be constructed. This came with paying movers, storage unit (in between houses), new house items I thought I needed to make it my mini dream home. During those months, I started questioning my relationship with my husband, something didn't feel right. I started realizing we were acting more like roommates than actual husband and wife. Although it was not easy, in the end, I made the decision to leave even though we had just moved into a new house. Let's just say it was the biggest purge I've ever done, I didn't take a lot with me and certainly hurt me financially.
Now that I'm more settled and can start thinking about life goals again, I thought what better way to start the new year than get out of debt and start towards my road to financial freedom. My amount of consumer debt isn't very high, it should only take me 4 months (May 15, 2015) and then I will concentrate on new goals such as finish saving for an emergency fund and starting my RRSP contribution again.
To achieve my first goal of getting out of debt, I have decided to spend money on needs only and my fixed expenses. Most months, I have been putting a fair large amount of money towards debt but I tend to use my visa after the payments, basically wiping out any progress. So, I will keep that same amount going towards debt and of course not use my visa. Any amount that I save from only buying needs, I will put into a savings account that will go towards my emergency fund.
Fixed expenses include:
- Rent
- Cellphone
- Parking (One at home and one at work)
- Car Lease Payments
- Car insurance
Variable expenses include:
- Food (Groceries)
- Gas
Some exceptions that isn't considered a need that I can foresee is hair dye and ball hockey. I need to remain looking professional and rather than going to my hairdresser, I am going to attempt fixing my own roots that are highlighted. I don't think i'll need a haircut for a few months as it was cut shorter than usual last time. If I decide I need one, I will attempt cutting it myself. For ball hockey, I play on a recreational team and I know fees will be due in April or May. I've been playing for almost 9 years and that's an expense that makes me happy and gives actual joy to my life. And besides, I'm Canadian it's in our blood. :)
Now that I'm more settled and can start thinking about life goals again, I thought what better way to start the new year than get out of debt and start towards my road to financial freedom. My amount of consumer debt isn't very high, it should only take me 4 months (May 15, 2015) and then I will concentrate on new goals such as finish saving for an emergency fund and starting my RRSP contribution again.
To achieve my first goal of getting out of debt, I have decided to spend money on needs only and my fixed expenses. Most months, I have been putting a fair large amount of money towards debt but I tend to use my visa after the payments, basically wiping out any progress. So, I will keep that same amount going towards debt and of course not use my visa. Any amount that I save from only buying needs, I will put into a savings account that will go towards my emergency fund.
Fixed expenses include:
- Rent
- Cellphone
- Parking (One at home and one at work)
- Car Lease Payments
- Car insurance
Variable expenses include:
- Food (Groceries)
- Gas
Some exceptions that isn't considered a need that I can foresee is hair dye and ball hockey. I need to remain looking professional and rather than going to my hairdresser, I am going to attempt fixing my own roots that are highlighted. I don't think i'll need a haircut for a few months as it was cut shorter than usual last time. If I decide I need one, I will attempt cutting it myself. For ball hockey, I play on a recreational team and I know fees will be due in April or May. I've been playing for almost 9 years and that's an expense that makes me happy and gives actual joy to my life. And besides, I'm Canadian it's in our blood. :)