Swipe No More: Saying Goodbye to Debt

I remember turning 18, graduating from high school, and dating an “older” guy the summer before I went to college. This will date me a bit, but debit cards were fairly new at the time and he used his like crazy. I recall thinking debit cards seemed so incredible. With a card and a pin, you didn’t need to fuss with checks or cash. He used his card liberally and I never saw him record his purchases or even be especially careful with tracking receipts. No wonder it looked so easy…

Needless to say, I quickly procured myself a debit card and a credit card didn’t follow too many years later. I followed his example and didn’t pull out that register to record my debit purchases either. As I shopped away my cares in college, I fell in love with the concept of store credit cards and instant discounts. My worst store credit card purchase: a full-length faux fur lined suede coat. Adorable, but only sometimes practical in Utah and never practical in Washington. To this day, I’m still trying to sell it for a reasonable price.

As long as I’m confessing, my worst credit card mistake came at the Gap store. Due to an address entry error, I didn’t receive my card for many months. It was never forwarded to me and, although I clearly was behind on payments, the store continued to let me use the card. When I finally realized (duh) I wasn’t getting statements and went to resolve the issue, I learned an extremely difficult lesson about interest and credit.

That was quite a few years ago and I am embarrassed to be sharing that shame publicly, but it all goes toward making an important point: Learning to manage money and balance a budget has been a bumpy road for me. In fact, I’m still learning. Adding in car payments, rent, a mortgage, student loans, home improvements, and medical bills, along with learning to manage money with someone else, has been tricky. I’ve often found that my best laid plans are upended by unexpected expenses or poor management.

I’ve tried several different methods, some more successful than others. There’s been times where I’ve had tons of savings and other times when I’ve stared at debt longer than I liked. Thanks to a good credit score, I’ve been able to shift money around, but I don’t want to do it anymore. I created a budget for next year and I can’t wait to start it with no money going toward “bad debt” (I don’t include car payment, mortgage, and husband’s student loans here) and I am determined to get begin using it ASAP.

I saw a post the other day about writing down and sharing a birthing plan to solidify your commitment. It makes sense that the same applies to a budget plan. So here’s mine.

My Money Goals for Next Year:
1. Pay Tithing.
2. Add to Savings with every paycheck.
3. Save for every purchase. If you can’t afford it now, it can wait.
4. Think “less is more.”
5. If/When our income increases, do not increase expenses.
6. No impulse buying.
7. Don’t worry about what other people have.
8. Write down every expense.
9. Always know what’s in our accounts.
10. Cut out the credit card. Only spend money you have.
11. Only use a credit card for points if you treat it like a checking account.
12. Faithfully use the pear budgeting system. (Here’s the link: https://www.pearbudget.com/. It’s an online “envelope” system and has a 30 day trial.

I have friends who are amazing with their money. One friend put 20% down on her home in her mid-twenties. Other friends use credit for everything and pay it off every month. Some people use the cash-only envelope system. Others use their second income as “play money.” I look to all of these people for inspiration and figure that someday – hopefully soon – I will be to think of budgets and money as something positive, rather than something to worry over.

If you have any tips or goals in regards to budgeting, please feel free to leave them here! I’d love to hear them!