Last night, while lying in bed, I tossed and turned for hours. Finally, I got up, walked down stairs, grabbed a yellow steno pad, and began my first course of Home Accounting 101.
After a few quick minutes of writing down my Income and then my expenses. I asked myself, "What in the hell am I doing wrong?; where is all this money left over going?" Well I have decided that there is no better time like the present to get a hold of my spending, and cut expenses. Because I, like much of America and our Govt., tend to have a problem with budgeting.
Before I start living this life I feel I'm entitled to, I must first climb out of the hole with the bank. (This hole excludes debts like Student loans, Mortgages etc… *we'll get to that later.)
The plan is to get out of the red and back into the black (with the bank that is).
Step 1. Cut expenses. I know this seems like it's impossible because I have learned to rely on so many things however, there was a point when I didn't have the excess (debt, expense) and was okay.
Step 2. Sell some assets. As much as I love my second car, I really have to let it go. There is only one of me and, with no family; there is no need to have it. (I bought it with the fear of what if one breaks?) But the reality is… two could break, and two can be expensive to keep, maintain and FIX.
Step 3. Collection. Anyone who owes me money, look out because I'm coming to collect.
**By this time I'll be out of the red and back in my comfort zone (thanks in large part to the selling of my second car)**
Step 4. Restrain from spending. I'll admit that I have a bad habit of spending money "stimulating the economy" when I feel like I have a little extra cash. *This step will be vital because it's going to set the precedent for an ongoing lifelong practice.
Step 5. Learn to save. This will be interesting as I start this process. I'm going to have to do some brainstorming on how to do this in a creative manner that doesn't seem so dreadful. My initial inclination is to start by saving aggressively (like I'm saving for something I really want) and after I reach my goal, I can back off and save in smaller percentages.
The key elements are going to be:
1. Self-Discipline
2. Practice, Practice, Practice
3. Admitting it will be hard.
Let the fix begin!
